Tony Dimasi On How To Choose A Location For Large Format Retail
In this post, we address one of the most common and frequently asked question – ‘How to Find The Best Location?’
For this specific post, we will focus on the Large Format Retail category and the important factors to shortlist the best location for such businesses. Retail & Property Economics Expert and Head for GapMaps Advisory, Tony Dimasi talks about the location factors that can make or break any large format retail outlet.
“Large format retailing is a big part of the total retail industry in Australia. It accounts for about 30% of the retail space and generates almost a quarter of total retail sales. It’s been a success story, the growth is being driven by a number of factors – increasing interest in DIY projects, home renovations and so on.”
Technology has created a lot of growth in consumer products especially the entertainment sector and development of greater supply of large format precincts like homemaker centres and so on.
For a very successful large format retail destination, we need a number of characteristics. Ideally, we want a high-profile, high exposure site that has got access to the substantial regional population. People don’t shop at these sorts of precincts every day or every week and when they do shop they want to be able to comparison shop, look at a range of retailers in one category or across categories.
We need to know where all the competitors are. If we are looking at one location or a number of locations, either it is a retailer or a developer – everyone has access to all of this information.
We also want to know the socio-demographic profile and the spending behaviours or capabilities of the customers we can serve from each of the locations we might be looking at. So, we can quantify the size of the potential target market that is available to us at each one of those locations.
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