Odd Lots cover image

Odd Lots

How Businesses Decide Exactly Where to Set Up Shop

Feb 5, 2024
53:20
Snipd AI
Tom McGee, CEO of the International Council of Shopping Centers, discusses the art of retail site selection, including demographics, tenant selection, and lease negotiations. The podcast also explores the importance of location within a shopping center, scalability of tenancy agreements, and factors to consider when selecting a business location. They also delve into the characteristics and customer patterns of Dutch Bros and Starbucks, and the considerations for choosing a drive-through site for safety and traffic management.
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Podcast summary created with Snipd AI

Quick takeaways

  • Location visibility, zoning regulations, demographics, proximity to competitors, and traffic patterns are important factors in retail site selection.
  • Data analysis plays a crucial role in retailers' site selection decisions, including evaluating sales forecasts, traffic data, and drive-through-specific considerations.

Deep dives

Factors in site selection

When choosing a site for a retail location, several factors come into play. One important factor is the location's visibility and accessibility, such as being situated on a corner with easy ingress and egress. Zoning regulations also play a role, as they determine if a drive-through is allowed and the type of development permitted. Retailers consider demographics to ensure the location aligns with their target customer base. Proximity to competitors is another consideration, with different industries having varying preferences for distance between similar businesses. Traffic patterns are crucial, and retailers analyze peak hours and traffic flow to optimize convenience for customers. Noise control and acoustics may influence site selection as well, with advancements in audio technology improving communication but increasing demand as drive-through traffic grows.

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