The good retail locations as a competitive advantage which cannot be pirated by the competition. One location can occupy one retail store, and time also plays a crucial role along with the location.
Having a convenient retail store helps the organization to make supply chain and distribution arrangements easy for a particular outlet. This reduces the cost of the organization as brothers when it comes to meeting the immediate demands of the customer and fulfilling the urgent orders the retail outlet will not have any difficulty in doing so.
Because the transportation cost is reduced, it reduces the overall cost of supply chain management and operations that by everything the retail store and the retail corporation to go close to the six sigma process.
Having many retail stores nearby also enables the retail corporation to store and bed storage houses at one convenient place from which most of the retail outlets can be created within no time. This reduces the wait time and also reduces the ‘No Stock’ incidences in stores.
A well placed retail store can also help to influence the buying habits of the customers. Customers will always prefer their brand, but most of the times, customers also referred to avoid a hassle to get to their store and compromise on other brands as well.
Retail store location is also an important factor for the marketing team to consider while setting retail marketing strategy. Here are some reasons:
- Selection of retail location is a long-term decision.
- Business location is a unique factor which the competitors cannot imitate. Hence, it can give a strong competitive advantage.
- It requires long-term capital investment.
- Good location is the key element for attracting customers to the outlet.
- A well-located store makes supply and distribution easier.
- Locations can help to change customers’ buying habits.