I am thinking of locating my upscale clothing store in a brand-new strip plaza where the only other business is a barbershop that just opened. Should I choose this location?
It's located on a street with a lot of strip plazas, and a half-mile or a mile away there are cheap clothing stores such as Big Lots, Conway's, Family Dollars and Dots Fashion. The demographics show that it's economically feasible in the ZIP code I'm looking at, but the people I've seen in the area don't seem as though they could afford the type of clothing and jewelry I want to sell. The landlord is offering three months' free rent.
You really want to be in a space occupied by a supermarket or dry cleaning business or other renters that generate good foot traffic, preferably in the type of demographic you are trying to target.
If you don't, then you have to create your own foot traffic, and the question becomes: Will you generate enough from your marketing
expenses to make the lower rent worthwhile?
The reality is, probably not. Better to "buy" built-in foot traffic then create it yourself. Especially if you would have to create it out of a customer base outside of your target.
All the best.