How to Pick A Profitable Retail Store Location

As a drycleaning consultant, one of the most common questions I receive is: “What criteria do you use to determine if a retail store will have strong revenue and profitability?” Here are my top 20 answers to this question, and I put 80% of the weight in the first five, and 60% of the weight into the first two. 1. Close proximity to Dream Neighborhoods  2. Near upscale grocery store where residents of dream neighborhoods shop 3. High traffic counts (relative to market) and dense population, relative to the market 4. Good visibility from the intersection / street 5. Ample parking spaces that do not require much walking 6. Size: 800 -1200 sq. ft. 7. Visible from hard corner – but not on it if a very busy intersection 8. Drive-thru will create additional lift of 15-25% 9. Market not saturated with competitors 10. New activity of affluent neighborhoods and upscale apartments / condos 11. Going home side of the street if there is a center turn lane and no light to make turn 12. Easy to turn into and out of 13. Good complementary neighbors – quick errands like coffee, donut 14. Avoid stores that require extended parking (hair salons, nails, day spas, sit down restaurants, work out clubs) 15. Allow five minute parking signs if parking is a challenge 16. High end retailers nearby (jewelry, clothing, etc) 17. Allow exclusivity for drycleaning, laundry, alterations, and wedding gowns 18. Rent in accordance with store potential. Understand NNN’s – insurance, CAM, and taxes 19. Allow production – to be used for overflow, WDF, comforters, linen services 20. Grounds are kept up and are attractive If you would like me to help you evaluate a particular location, please reach out to me at: dave@maverickdrycleaners.com. I would love to help you with that. Have a great week! Dave