Operations Geography Matters
You have a great concept sure to rake in sales. But where do you locate your new specialty retail business to cash in on this find? Duffy C. Weir
Y
ou have a fabulous new product and want it to be in the best possible location so everyone can see it, fall in love with it—and buy it. But where will it shine the
brightest? If you simply look around, you will notice there is a logical order to the placement of products where they are likely to get high customer attention. Unfortunately, an owner’s illogical and sometimes irrational preconceptions about where a product fits gets in the way of where it would actually do better. When you break down product and placement to the basics, you begin to see where and how the emotional purchasing behavior of the consumer also figures in.
New product on the block Selecting the right neighborhood means choosing the right shopping center in the market; or the right community fair; or the right entertainment district; or a weekend farmer’s market—the place where your product is at home. Is there meaning to all this “Location. Location. Location”
madness? At the grocery store, the choice is straightforward; if your product is frozen food, it belongs somewhere between the pizza and the pierogi. If you’re selling bottled olive oil, buyers are most likely to find it if it’s placed with other
similar products like salad dressings and seasonings. The end caps of grocery store aisles announce what is on sale and featured that week. With Valentine’s Day around the corner, many grocery end caps are stocked floor to ceiling with candy kisses and chocolates. As another example, take a look at magazine stands.
Why are all the bridal magazines grouped together? Did you ever wonder why House and Garden, Southern Living and Architectural Digest share the same row in the rack? They discuss similar issues and the choice attracts the customer.
Clusters click Translate this model to the mall—is your business located on an “end cap” i.e., the beginning of a string of carts, RMUs or kiosks? Is it obvious to others that your product is a seasonal limited edition? If your product is footwear, where do you fit in the com- mon area? Do you request to be located closest to the women’s fashion stores because after all, don’t most women buy shoes after they buy the perfect dress? Geography matters. You have to look around and see who
is in the vicinity—who your neighbors are and if they are selling similar or complementary products to your offerings.
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Specialty Retail Report n Winter 2012
SpecialtyRetail.com
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