Business Trends

Ask These 8 Inquiries to Resolve Whether or not It’s Time to Open a Second Retail Location

In 2017, we learn lots about huge retail chains closing shops. However for small retailers, it might be a special story. A whopping 98% of all retail places are small companies, in keeping with the Nationwide Retail Federation. In case your retailer is flourishing, might now be the time to broaden right into a second location?

Figuring out When to Open a Second Location

In a shifting retail panorama, it’s very important to contemplate all of the components rigorously earlier than you open a second retailer. Listed below are some inquiries to ask your self.

How sturdy are your gross sales? Don’t even take into consideration increasing to a different location until your gross sales are rising persistently for an prolonged interval. In any other case, you can be basing your transfer on a fluke, comparable to one busy season or a very well-liked product line you simply added.

Have you ever maxed out your present market? In case you don’t really feel there are any extra potential prospects in your space who aren’t already procuring with you, that may very well be an indication that it’s time to develop.

Do you’ve got prospects coming from distant? If a major variety of your prospects are keen to drive lengthy distances to your retailer, then a second retailer the place they’re coming from might probably achieve success.

Is your retailer in a market space giant sufficient to help a second retailer, with out cannibalizing your first location? Opening your second retailer in an space the place your preliminary retailer already has title recognition can enhance your probabilities for fulfillment.

Are you able to afford a second location? It’s necessary to create an in depth marketing strategy on your second location to ensure you aren’t stretching your self too skinny financially. Although you’ve executed this earlier than, don’t assume the whole lot will go precisely the identical (or value the identical) as while you opened your first retailer.

Do you’ve got time for a second location? Assume again to while you opened your first retail retailer and the way busy you have been. Will you be capable to stretch your self between two shops, or do you’ve got a succesful second-in-command who can deal with the unique retailer whilst you give attention to the brand new one? Needless to say as soon as your second retailer is up and working, touring between two places is probably not sensible, so you will want to be snug delegating to a retailer supervisor for at the least one location.

Talking of delegating, do you’ve got employees members who’re keen to switch to the brand new retailer? If not, do you’re feeling assured which you can rent and prepare folks to create the identical buyer expertise as your first retailer?

How will the second retailer evaluate to the primary? Each market is completely different, so don’t assume you may launch a carbon copy of your first retailer and succeed. Chances are you’ll want to regulate the advertising message, product combine, or service stage to the brand new location’s goal prospects.

One technique to check out a possible second location with out quite a lot of danger is to attempt one thing non permanent.

  • Pop-up store: Pop-up outlets are short-term retail experiences that sometimes run six weeks or so. You possibly can search for a vacant storefront on your pop-up store or see in the event you can maintain your store in a complementary retailer’s retailer. As an illustration, in case your retailer sells handcrafted jewellery, you can discover a ladies’s clothes boutique or different retailer focusing on the identical market within the new space you’re contemplating, and see in the event that they’ll allow you to do a pop-up of their retailer.
  • Mall or procuring heart kiosk: With the vacation procuring season approaching, this may very well be the right time to check the waters in a short lived kiosk. If the second location you’re taking a look at is in a mall or procuring heart, see if they’ve kiosk choices out there.

Have you ever thought of all these components and nonetheless aren’t certain whether or not a second location is the appropriate choice? In case you’re not already doing so, increasing into e-commerce may very well be a lower-cost choice that would seize an excellent greater market share.
See Additionally:
8 Inquiries to Ask Earlier than Redesigning Your Web site

Photograph by way of Shutterstock

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