fusion point research Marketing Research Reports

Marketing to Site Selection Leaders in Retail

Understanding Their Role

The cost of investing in a new bricks-and-mortar store is substantial and one of the best ways to ensure that investment pays off for many years is by choosing the correct location. Considering that ninety percent of retail sales are made at stores, the old adage “location, location, location” is never truer.1 Simply put, for retailers, better locations equal more sales.2


The first point is to thoroughly understand the market demographics in a defined radius. Knowing who the customer is, where they are coming from and going to, and what their habits are will help point the way to choosing the best site location.


Market saturation is equally important. Common knowledge says choosing an over-saturated market encourages failure. However, choosing an underserved market may not be advantageous either, as the location may be too inaccessible or the market too thin. Demand in the area must be high enough to cover the costs of the store.3


Tying in with market saturation, a forecast five to ten years in the future of the area and market is necessary. Potential growth is a key factor in deciding on a location. A forecast will also help the company adapt when competitors enter or leave the market, moves that can change market dynamics drastically.4


Finally, a company must develop a process plan for the store. Market demographics will define the size of the store, the appropriate parking ratio, the energy demands of the store, and in addition to local zoning ordinances and building laws, provide a clear visual of the type of location the store needs in order to succeed.5 For example, a store that is easily accessible from the street, with suitable parking and room for delivery vehicles to load, has a greater chance of success.6 The store with the easiest access will attract the most customers, all things being equal.7 The process plan will help by eliminating unsuitable locations.


Knowing the market demographics and having a process plan require a lot of work and time investment, but are necessary for choosing the right location and giving the store a better chance at success. Using these decision-making techniques helps ensure the best decision is being made with the information available.

1 Berman, Barry, and Joel R. Evans. Retail Management: A Strategic Approach 12th Ed. Edited by Pearson Education, Inc., Prentice Hall., 2013.

2 Fenker, Richard. “Using Property Scoring to Find the Right Location.” Retail Property Insights 19, no. 1 (2012): 32 – 36. EBSCOhost(82357194).

3 Hall, Jack. “Urban Site Selection with High Definition.” Retail Property Insights 19, no. 3 (2012): 72 – 75. EBSCOhost(85387641).

4 Berman, Barry, and Joel R. Evans. Retail Management: A Strategic Approach 12th Ed.

5 Cunningham, Ryan. “Critical Steps in Building a Site Selection Process.” Franchising World 44, no. 7 (2012): 22 – 23. EBSCOhost(77843374).

6 House, Darren. “Location, Location, Location.” Builders Merchants Journal, 2012, 11. EBSCOhost(78959797).?

7 Bainbridge, Robert E. “Site Essentials of Convenience Stores and Retail Fuel Properties.” Appraisal Journal 80, no. 1 (2012): 61 – 76. EBSCOhost(73899953).

lable at: http://jda.com/realresultsmagazine


Not Required

Submitting Form...

The server encountered an error.

Message received. Thanks!

Copyright © 2016 Fusion Point Research, Inc.

Retailers use a sophisticated mix of analysis tools before making long-term commitments to store locations.