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How to Choose a Convenience Store Location


Categories: News Center

Time of issue:2020-12-09 18:03

Due to the high requirements of convenience stores for store location, we conducted a survey on the passenger flow of a convenience store (see Figure A):

According to the topographic characteristics of Figure A, the field survey data are as follows:

 

  

 

Description:

According to the geographical location of the store and the surrounding traffic conditions, the customer source direction is divided into four directions related to EE building.

As can be seen from Table A, the flow of people from south to north is dominant, 52.5 per cent. The second is the flow of people from north to south, accounting for 27.6 per cent. Generally speaking, the flow of people on both sides of a road will not be the same, and the flow of people will change at different times of the day. Convenience stores in the location, to choose the side of the flow of people. According to observation, people across the street rarely cross the street to shop at convenience stores.

The flow of people from south to north can be further subdivided. First, return to XX No.2 Road after shopping. Second, after shopping, go north along YY South Road. Third, enter ZZ Road westward after shopping. Among them, the former two are the main ones. According to the characteristics of this flow direction, if the location of the convenience store is moved from the northeast corner of EE building to the southeast corner, and the exit is directly facing XX 2 road, the main traffic road, so that the adjusted convenience store is located at the crossroads and faces the street on both sides, the adjusted location is an excellent location.

However, the southeast corner of the first floor of the EE building has been occupied by other bottom merchants, and choices are restricted, which is often the case when convenience stores are selected. (See Figure B)

 

  

 

At this point, the retailer has several options:(1) abandon the plan to open a store in this location;(2) negotiate with the first occupant for a preferred location; and (3) choose another location near the preferred location. It is worth noting that the costs and benefits of the latter two approaches should be compared comprehensively, because the "difference" is often "lost".

It would certainly be ideal if you could trade a smaller price for a better location. What should we do from a specific operational perspective when the location remains unchanged?

1. Win regular customers and strive for repeated purchases from customers. Generally through differentiated homemade food and more meticulous customer service to win more regular customers, 7-11 is a master in this area.

2. The store logo is more obvious. Be sure to ensure that the store signs are brightly lit at night to attract more customers' attention and increase the chance of random customers coming.

3. Maximize sales at peak points: Since sales are concentrated at the three peak points in the morning, middle and evening, accounting for 25% of the overall sales period, how to maximize sales at peak points is the key. The key to the operation is: to ensure that the quantity of goods at the three peak points in the morning, middle and evening is sufficient and not out of stock; Avoid delivery and receipt at peak points; Ensure the freshness of homemade food, and introduce promotional products at the three peak points to increase the unit price of customers.

The commercial site selection pays attention to "golden corner and silver edge", and it is not necessarily a good location in the northeast corner of EE Building. If you move to the side of the store in the southeast corner of EE building, it must be on the "silver edge" and in the direction of the street, the rent will be relatively expensive, and the passenger flow and profit margin will be difficult to guarantee. Therefore, there is another key here, that is, where is the door of the convenience store opened?

The position of the door is preferably at point A. If according to the survey, the proportion of people flowing from south to north exceeds 50%, then we can count this as the main flow.

For the convenience store, the main stream is in the west, so we must choose this side, so we should give up point c and point d-although point d is also a good gate, it is not facing the main stream.

In addition, if the convenience store has a glass window at point B to display colorful drinks or other goods, then customers from the south must see the goods first through the glass, thus creating a purchase incentive to enter the store. However, if there is a door at point B and the display can be seen through the glass at point a, if there is a rival convenience store across the street, may lazy customers give up the impulse to turn around and buy in summer-"there are also doors across the street, so stop by and buy there".