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Location – Location - Location. We all know the choice of location is one of the most important decisions those opening a dollar store business will be faced with. It is a decision you live with for years. In fact the total sales and dollar store profits you will make are determined in large part by your choice of locations. With so much of your business success placed on the location, a mistake cannot be made. There must be some criteria for making your choice. To help get you get started developing your own criteria, I present 7 keys to selecting the right location when opening a dollar store. 1) Good population composed of the right demographics nearby. Gather the data. Examine demographics and population totals within .5, 1, 2 and 5 miles. Don’t forget to include traffic counts. The number of cars passing directly in front of your store can create the potential for thousands of new shoppers, sales and dollar store profits. 2) Excellent visibility to those passing by. Those driving by your store front need to be able to clearly see it. After all, you have mere seconds to gain their attention. It also is important to have a large number of passers by who are on foot as well. With foot traffic you do have more time to gain their attention and motivate them to stop and actually walk through the front door of your store. 3) Solid anchor businesses. Don’t underestimate the impact the right anchor business can have on your success. Make sure anchor businesses cater to customers who fit your demographic. Make sure there is easy movement from the key anchor businesses to your store. 4) When opening a dollar store be sure to thoroughly examine the competition. In fact find out about all the competition before signing a lease. If a gigantic, well-established national dollar store sits right down the block, your 1,500 square foot dollar store is in for some tough times as sales and dollar store profits will be difficult to generate. Start by looking for other dollar stores. Don’t stop there. Examine retailers with dollar departments. Look at other discounters and closeout retailers as well. 5) Adequate convenient parking close by, or even better immediately in front of the store. Many who are opening a dollar store soon discover many shoppers are in a hurry. They stop by expecting to park immediately in front of your store and pop in to pick up one or two items. While they might add to their purchases after entering your store, they are turned off by adding a long walk to what they planned as a quick in and out trip. On the other hand, even though your dollar store profits are small when selling only one or two items to a shopper, even the small sales do add up. 6) History of successful businesses. While it is possible for a good retail business owner to take a location with a history of failed businesses and turn it into a success, there is often extra time, work and money required. A better strategy is to find a good location with a history of success for your store. Build on the success of others to create a true winner. 7) The lease term and payment needs to fit the location. Those opening a dollar store know lease payments represent one of their biggest obligations. In order for your payment to be justified, it must be appropriate for the sales you generate. Make sure you are not in a position of paying top-tier rent for a second-tier location. Generating the sales and dollar store profits to warrant such an arrangement are difficult if not impossible. To your dollar store success! Learn how you can Start your own Dollar Store Business.
Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
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