Four out of five retailers surveyed by AMR Research for the National Retail Federation say that demographic information is the most important factor in determining store location. That means, says Rob Garf of AMR, how many people live within a certain radius of the potential store.
The next most important consideration is competitive information. “If I am Starbucks,” Garf says, “I want to better understand what Peet’s Coffee or Dunkin’ Donuts is doing in that market.”
The third consideration is traffic patterns. “Retailers are getting smart around traffic patterns,” Garf says, “and that includes both street traffic and mall traffic.”
Finally, retailers take into account geographic factors such as existing and future population in an area.
On average, retailers surveyed say they screen 10 potential sites for each one that they approve. As they say, it pays to shop around.