Choosing the right location is the most important aspect of starting a business and when it comes to retail business, finding the strategically right location means everything to a retailer or the brand. An appropriate location aligned with the target market, and prominent visibility with adequate infrastructure is essential for a retail business to thrive.
Careful evaluation of the potential benefits and risks associated with a particular location is crucial to drive sustainable growth and success in the retail industry. According to a report by Knight Frank India, location and convenience factors such as parking facilities, visibility, and ease of accessibility play a key role in driving the retail business's growth. The availability of infrastructure and amenities in the vicinity of a retail business makes its presence more visible to shoppers, visitors, and passers-by. Good connectivity, public transportation, and parking facilities in mindfully designed retail spaces can also enhance convenience for customers, encouraging them to repeat visits that increase the chances of brand recognition and recall.
According to a survey held by the industry body Retailers Association of India, sales during April 2022 and March 2023 registered a growth of 34 percent vis-a-vis from April 2021-March 2022. Despite the e-commerce boom and online inclination of consumers in the aftermath of the pandemic, brick-and-mortar retailing businesses are indispensable and ruling the roost in the Indian market as customers still love to have personal experiences by shopping and visiting stores in person.
As per a joint report by Anarock and the Retailers Association of India (RAI), in the next four to five years, India's top seven cities will have 25 million sq ft of new mall space. Delhi-NCR and Hyderabad are likely to account for nearly half of this new supply owing to the new brand entry and expansion of existing brands. The Grade A retail space coming up in the prime locations of the city and its peripheries boasting premium amenities and infrastructure are likely to emerge as the preferred choice for brands, retailers, and even investors.
Careful market research is vital to identify the optimal location that aligns with the target market and maximizes growth opportunities in the dynamic Indian retail landscape. Owing to factors like population density, cultural diversity, consumer behaviour, infrastructure, and competitive business environment, choosing the right location is crucial for a retail business in India.
Establishing a store in a premium, well-established, planned, and connected area can boost the brand image, its reputation, and the business. The growth of a retail business hinges on its strategic location which is one of the key contributing factors in the growth of the business thus it is important to identify an appropriate and rightly fit location.
