Eight Key Steps For Location Selection

　　 A. new store development plan

Before developing a new store in a district, a new store development plan should first be developed, which is designed to match the development plan of the whole company.

Because the development plan of different stages of the company in the same area will be quite different. For example, when entering a certain area, the first thing to consider is to set up a brand image in the mind of the consumer. The number of new stores will be relatively small at this stage, and it will not pay too much attention to the profits. In addition, we must pay close attention to the expansion plan of competitors. When competitors speed up their expansion, the company will also speed up the development plan of new stores so as to maintain or even increase market share.

　 B. market information collection

In order to develop a new store in a certain area, we need to know the market information in detail. It includes population (population, age, male / female ratio, residential population distribution); employment (number of employment persons, categories, convenience of new shops, fixed and floating population of main office buildings); shopping places (area, business hours, main customers); entertainment (location, usage rate, age, appearance, business hours); traffic (total number of passengers, number of passengers at the station); competitors (location, relative advantages and disadvantages, and estimated turnover); government's plans and regulations (limit construction, future plans, highway changes); business dynamics (economic growth rate, unemployment rate, new engineering). In the collection of market information, the most important concept is business circle. Business district refers to the sales area delineated by the location of the new store as the center and with a certain distance around it as the radius.

　　 C. location Merits and faults evaluation

Location evaluation is to evaluate the quality of a location, and compare the results of one location with several specific attributes of other locations in the business circle.

Generally speaking, the evaluation of location is divided into four types:

Super point is the focus of attention in a business circle, and its visibility and proximity are especially prominent. It is the best place in the entire business circle. A point is a good location in the business circle, but its visibility and proximity are not as good as its super point. There are very few points in this business circle. B point is a less prominent place in the business circle. Many places in this business circle are superior. C point C point is similar to that of B, and its conditions are worse in proximity and visibility.

　　 D. determination Reasonable price

According to the rating, size, time factor, the structure and appearance of the building, and the rental price of similar property in the business district, we should determine whether the owner or broker's asking price is reasonable. Location rent or selling price will have a greater impact on the profitability of new stores in the future.

　　 E. location Practical assessment

Not all good places are suitable for opening stores, especially for different types of stores. Can all kinds of practical factors need to be considered meet the requirements?

　 F. turnover estimate

After conducting business district investigation and location analysis, a similar store is selected for comparison, and the distribution of new stores' hourly, daily and weekly turnover is estimated, and the monthly turnover of new stores is estimated by considering the difference of operating income between seasons and holidays. If opening a new store may affect the turnover of other franchised stores, it is also necessary to estimate the impact of new stores on old stores.

　　 G. Financial situation

The prediction and analysis of financial situation is a very important link in the location of new stores. In this step, we should focus on evaluating the financial indicators of new stores, including profitability, total development cost, return on investment, investment recovery period, capital preservation turnover, contribution profit, cash flow and so on.

　　 H. post hoc analysis

After the new store is opened, the estimated turnover and various financial indicators are compared with the actual situation to check the correctness of each step in the location of the new store, if there is any amendment, and to accumulate experience for the opening of the new store.

The above eight steps are systematic and complete. Some enterprises can simplify several steps because of the relationship between industry and time. The above is an evaluation form for the location of a clothing store. Its contents are divided into two major parts, 14 items, and the maximum score is 5 points and the lowest score is 1 points. After a thorough inspection of the new store, the evaluation form is completed according to the objective situation, and finally the assessment can reach the basic score.