Location plays a crucial role in the success of retail businesses. Factors like foot traffic, visibility, accessibility, and demographics can greatly influence a store’s performance. Here are some key points and statistics on the impact of location and the role of windows and showcasing in retail:
- Foot traffic: Stores in high-traffic areas, such as busy streets, shopping centers, or tourist destinations, can benefit from increased exposure and potential customers.
- Visibility: Prominent store locations with eye-catching storefronts and signage can attract more customers. A study by the Journal of Retailing and Consumer Services found that window displays can increase sales by up to 30%.
- Accessibility: Stores easily accessible by various modes of transportation (e.g., car, public transit, or foot) can attract a wider customer base. A survey by the National Retail Federation found that 79% of consumers consider a convenient location as a key factor in choosing where to shop.
- Demographics: Retailers should consider the area’s demographics when choosing a location. Stores should cater to the needs and preferences of the local population. A report by Deloitte found that 41% of consumers prefer to shop at stores that align with their values and lifestyles.
- Window displays: Effective window displays can entice passersby to enter the store and make a purchase. According to a study by the Journal of Retailing, well-designed window displays can increase store entry by up to 50%.
- Showcasing: In-store product showcasing and visual merchandising can influence customer behavior and encourage sales. A study by the Journal of Retailing found that effective product displays can increase sales by up to 25%.
By understanding the impact of location and effectively leveraging windows and showcasing, retailers can improve their chances of success and drive sales.
Example of Retailers and Location Marketing Strategies
This is a picture of a Value City on US31 South close to where I live in Greenwood. Notice the drab digs… no windows, terrible color, all concrete brick… not very appealing.
Ashley’s Furniture moved in across the street. It’s a very nice location that used to be a sports store. Ashley’s has great prices, and the store is simply amazing.
So, what is Value City to do? Well, they started by cutting out a corner of the store and redesigning it with spacious windows so customers could see what was inside.
And then they make sure that some of those windows face Ashley’s:
But the piece de resistance? Oui. They sold a plot of land in the parking lot, where a new building was built, blocking the view of Ashley’s from the main highway.
Wow. Now that’s a retail war! Retail marketers aren’t kidding when they said Location, Location, Location!. By the way, I think Ashley’s may have rubbed it in a little with that huge #1 sign. 🙂
Tips For Retailers on Locations
- Conduct thorough research on potential store locations, considering factors like foot traffic, competition, and target audience.
- Create engaging and eye-catching window displays that reflect your brand and showcase your products effectively.
- Ensure your store layout and visual merchandising strategies are optimized to guide customers through the shopping experience and encourage purchases.
- Regularly update window displays and in-store showcasing to keep the shopping experience fresh and engaging for customers.
- Monitor sales performance and customer feedback to continually refine your location and showcasing strategies.
