Opening a second retail location can be an effective way to increase your business’s revenue, but it isn’t as simple as opening another store. You’ll need to focus on several important factors before opening the doors to your second location so you don’t lose money in the process. To get started, check out this ultimate guide to opening a second retail location that includes tips and strategies from some of the nation’s most successful retail establishments.
Some retail businesses decide to open in close proximity to an already established business, like Target and Costco. However, certain sectors such as grocery stores may want to expand in different locations because of the types of food they offer. For instance, Whole Foods Market currently has 1,294 stores nationwide with more than 20% located outside of California. Their most recent store opening was in Charleston, South Carolina on March 17th 2018. To be successful at expanding into other areas, it is important for these stores to have their own brand identity and maintain consistency across all locations.
It is easy to make mistakes when opening a new store location. Here are five common mistakes you want to avoid.
*Failing to recognize staffing needs at both stores: *Identify what positions you need at each location, so that they can be filled as soon as possible *Staffing levels will be different in each store depending on what services are provided, hours of operation, available foot traffic, and other factors.
Importance of Data Collection
One major factor in the success of your new store is data collection. Whether you’re just starting out or expanding, it’s important to keep track of customer feedback in order to make any needed changes. Ask customers for their feedback by employing surveys and utilizing feedback apps on tablets available at checkout. Remember that investing time in data collection upfront will help you analyze where you need to change in order to succeed in the future!
Successful second locations often start with an existing customer base
Oftentimes, the most successful second retail locations have an existing customer base that is loyal to your company. Give customers at your first store advance notice about your plans for expansion and send them coupons or offers when you open the new location.
Considerations before deciding whether to expand
Many entrepreneurs see opening up a second store location as the first major step in expanding their retail business. Although there are many benefits to opening an additional store, it is important to take into consideration the time and expense involved with launching another location. You will have to consider whether you want to handle the responsibilities that come with managing two stores instead of just one, including finding ways to collaborate between them while they’re operating separately.
Avoid these pitfalls when opening up a retail location – Part 1
If you’re ready to take the plunge into opening up a second retail location, be careful not to fall into these common traps. With the right level of caution and careful planning, your second store can thrive from day one.