Importance Of Store Location

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5.6. Why store location is so important to retailers? Store location is typically the most important consideration in a customer’s store choice where they want to shop. In general, location strategy affects demand differently all depending on the types of store the retailers are targeting. For example, convenience store is usually located closest to customers where they live or work at the convenient of customers to shop. Retailers with this type of store focusing on convenience products such as soft drink, drinking and mineral water, beers, cigarette, and snack food that consumers do not spend much effort to evaluate prior to their buying. The location success factor is having a large number of stores that can easily accessible by the customers. Store location is important as retailers can use to develop a sustainable competitive advantage, as competitors cannot easily copy. Retailers can change their pricing, merchandise assortments or retail formats and service in a relatively short period of time but not location because retailers usually have to make substantial investments to buy and develop real estate or need to commit long-term leases with developers or shop owners. 5.7. How to make location decisions effectively? In order for retailers to make store location decisions effectively, retailers must examine all the three levels simultaneously such as region, trade area and specific site. The region refers to a particular city or state or metropolitan area whereas a
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