There is a delicate balance when it comes to choosing the right base of operations for a shop, and many retailers are delicately balancing location, size, layout and ease of maintenance in order to create the best experience for customers and convert that to sales.
Exactly how much space you need is often a matter of debate; buying too small a retail location limits your potential for growth, makes it far harder to avoid retail clutter and can lead to an awkward and inaccessible store layout.
Too much space, however, can make a shop feel empty and lead to more expensive rent and larger maintenance costs to keep a relatively spartan space looking its best. Larger retail locations may also be in less ideal locations, hurting business in the process.
How do you determine the right amount of floor space for your shop? Here are a few potential methods.
Use Sales Per Square Foot
A useful rule of thumb that can help you determine how much space you may need is “sales per square foot”, a figure that determines the value of a retail space in the sector you are selling in.
Find out the sales per square foot, and divide your projected yearly income by this number to determine how much space you are likely to need at a minimum, then look for retail locations which come close to fitting your criteria.
Think Three Years Ahead
When looking for a space to rent, consider where you expect the business to be three years from now and buy an appropriate shop location.
This means avoiding overly small stores that can barely fit your business now and are difficult to clean and maintain appropriately, whilst also avoiding the trap of scaling up too quickly in a way that is unaffordable.
Consider Value As Well As Price
Ultimately, your location and layout matter as much as its size, and a smaller, more expensive space per square foot can sometimes be a better option if it means greater foot traffic and more sales.
It also means you have better options for maintenance partners who can help ensure your store looks its absolute best.