Site Selection And Shop Planning

Some experts point out that finding an ideal shop and starting a business is half the battle.

It's not too much to say. Starting a shop is different from running a factory. The retail business mode determines that the choice of storefront is very important. It often determines the success or failure of the store directly.

Site selection includes three main parts: business circle investigation, business circle evaluation and shop signing.

Business circle survey

The so-called business circle refers to a circular consumption circle consisting of the location of the shop as the center of the circle, extending outward to a certain distance, and the distance as a radius, that is, the effective scope to attract consumers to come shopping or receive services.

For example, the shops in the hiking area may be 300 meters in diameter, and the towns and villages may be 1000 yuan (shopping inconvenience, lack of competition and so on) depending on the specific circumstances.

The size of the business circle is closely related to the business planning, business scope, location, reputation and traffic conditions of the store, reflecting the operational radiation capability of the store.

The scope of business circle is the main basis for shops to determine the distribution of service objects, commodity composition, promotion methods and publicity scope.

Therefore, we must be cautious and prudent when choosing business circles.

The description of business circles is restricted by various factors, and its form is often irregular. But according to the marketing point of view, the business circle structure can be divided into three layers, and can be represented by 3 concentric circles of different sizes.

A. main business circle: the main source of single store performance, accounting for 55 to 70% of the total performance of a single store, has a higher customer loyalty rate.

B. times: 15 to 25% of the total performance of a single store. Relatively speaking, the visiting rate of the old customers is relatively low.

C. auxiliary business circle: accounting for 5% of the total performance of a single store, located in the periphery of the business circle, with more free guests.

The demarcation of the scope of business circle is different from that of the industry. Generally speaking, convenience stores are mostly 50 meters, the second business circle is 50~150 meters, and the auxiliary business circle is 150~250 meters.

But if it is a specialized shop or a large shop, the scope of its business area can be calculated by car.

Business circles basically have no shape, but in order to facilitate the planning, the general advance planning can be used for calculating the business circle.

For example, with the following limitations, the scope of business circle can be divided into:

The radius of A. business circle is limited to 500 meters.

B. road demarcation: roads with more than 40 meters wide, four lane roads or railings, separated islands and main roads in the middle are divided into two different business circles.

C. railway and level crossing barrier: people are divided into two different business circles due to obstruction of railway and level crossing and blocked traffic.

D. viaduct and underground tunnel barrier: because of the barrier of viaduct and underground tunnel, people can be divided into different business circles.

E. barrier separation: it is divided into different business areas due to safety barrier and inconvenience of tidal current.

F. ditu: due to the barrier of big water gap, the tidal current is inconvenient to be divided into different business circles.

G. one-way street: because of the single lane barrier, people can be divided into different business circles by inconvenient mobility.

The trend of H. is the trend of shopping habits and the flow of people.

There are two types of business circles: centralized business circle and dispersed business circle.

When choosing a business district, we should give full consideration to the location of the shops, the attractive customers, the price of goods sold, the size of the business circle, and so on.

Generally speaking, the business circle can be divided into the following categories:

A. business district

The areas where commercial activities are concentrated are characterized by large business circles, large floating population, various shops and flourishing activities.

Its consumption habits are characterized by speed, popularity, entertainment, impulse buying and higher consumption.

B. residential area

The number of households in this area should be at least 1000 or more.

The consumption habits of residential areas are stable for consumers, pay attention to convenience and intimacy, and purchase rate of household goods is higher.

C. culture and education area

There are usually one or more schools near the cultural and educational areas, among which the private and cram schools are more ideal.

The consumption group in this area is mostly students, the consumption amount is generally not high, but the purchase rate of snack foods and stationery is high.

D. office area

This area refers to the area where office buildings are located.

The number of employees in an office building may exceed one thousand or two thousand, especially for office workers.

Its consumption habits are convenience, large population and high consumption level.

E. industrial area

The consumers in the industrial area are mostly factory managers and workers. The consumption level is low, but the total consumption is large.

F. mixing zone

The mixture is divided into residence business mix, residence teaching mix, business mix.

The mixed area has the consumption characteristics of a single business circle. A business circle often contains many types of business circles, which is a diversified consumption habit.

After determining the basic location of the business district, the site selection personnel should conduct a detailed investigation on the business district of the pre selected address, including the overall elements of the business circle and the situation of the competition store.

The key points to be investigated are as follows:

A. fixed population: refers to the number of households living in the business circle.

B. population density: the number of resident population per square kilometre divided by the number of residents living in the area divided by the land area.

The higher population density, the more suitable for opening shops.

C. population growth rate: the number of people increasing with the development of the city, for example, the new towns and new districts will have many outflow populations.

D. day and night population: due to the different length of business and some 24 hours, the number of people in the day is very important.

Usually in the office area or industrial area, the number of daytime population is the main source of store performance, but in the evening, when the working people return home, the population in the business district will be significantly reduced.

E. occupation, age, education level and income: people of different occupations and ages have different preferences for commodities, and the same educational level also exists.

The population income in the business circle also directly affects the unit price of people's expenditure and shop consumption.

F. traffic: traffic factor is also very important, because traffic can bring a large number of floating population and improve the consumption ability in the business circle.

In other words, convenient pportation is related to the tide of people and the growth of performance.

G. consumption habits and habits survey: different consumption habits and habits have different kinds of products, combinations and needs.

H. building type: different buildings have different customers.

Office buildings represent a stable office population, and their purchasing power is generally high.

Department stores and leisure venues can attract customers and have high customer focus, which can serve as an interactive indicator of store operation.

Remember, business district surveys should pay special attention to competitors, because competitors in the business circle will be close to each other in the future.

In order to facilitate analysis and observation, the site selection person can also draw a business circle plan, which should mainly indicate the name of the street, main public facilities, traffic routes, population flow routes, and the position of the main competitors.