The Importance of Location
AFR, 7th Dec. 2007.
A article in the Australian Financial Review (Friday, December 7th). The CEOs of some of the leading retail organisations in Australia highlighted the importance of location. Below are extracts from the article by the leaders at Bunnings, Rebel Sport, JB Hi-Fi, Noni-B and Cue in the article. Successful retailers are Location Intelligent. Are you?
"A lot of retailers talk about "location, location, location" but it is very true," says Peter Davis who runs Bunnings..... He says at times they've had to be patient. "The stores have to be in the right spot and have all the key attributes our customers require, such as good parking and easy access on main arterial roads." Just three of Bunnings warehouses and 65 small-format stores have failed to meet the retailer's core performance criteria - principally because they are in the wrong location, hand-me-downs from Bunnings takeover of BBC Hardware in 2001.
JB Hi-Fi, Noni-B and Cue have all had to close underperforming stores. Their CEOs say location and demographics should never be compromised for cheap rent. "A poorly performing store can have a bigger impact on business than a badly received product, yet sometimes it's a battle to get into stores in the areas you want." says Noni B's Alan Kindl.
Rebel Sports MD Stephen Heath says selecting the right location and demographic for new stores is one of the most critical issues for a retailer. But so is understanding local markets.... "It can take a while to realise a store is not performing," Heath says. "Other stores fly straight away. It has a lot to do with location and competition, how long the competition has been around, and customer loyalty...They're the biggest concerns for me and Rebel - the performance of individual stores rather than disasters in categories."
Are you location intelligent? Do you know the demographics and competition in your markets. Contact us today to discover how to become location intelligent.
| Please fill out the form below and we will contact you shortly.
|
|
|
