How to Choose the Best Store Location and Expand Your Retail Network

Opening a new retail store is an exciting step for any business, but it’s also a decision fraught with challenges. From selecting the right site to ensuring alignment with your overall retail expansion strategy, every choice matters. Get it right, and your store can thrive as a flagship success. Get it wrong, and you risk not only financial losses but also damaging your brand.

So, how do you navigate the complexities of choosing the best store location while ensuring sustainable growth? Here’s a comprehensive guide on what to consider before opening a new shop and how to grow your retail network without risking existing stores.

5 Things to Consider Before Choosing Your Next Store Location

Customer Demographics Who are your target customers, and where do they live, work, and shop? Understanding customer behaviour and aligning your location to their needs is critical. A location that attracts your ideal demographic will naturally generate footfall and sales.
Local Competition A bustling area might seem attractive, but how saturated is the market? Analysing the competitive landscape helps identify whether a location is an opportunity or a trap. The last thing you want is to open a store only to find yourself overshadowed by established players.
Accessibility and Visibility Even the best products won’t sell if customers can’t find your store. Consider factors such as parking, public transport, and pedestrian traffic. A highly visible and easily accessible location maximises footfall.
Economic and Market Trends Is the area you’re considering on the rise or in decline? Market trends, including local economic activity and retail growth, can provide valuable insights into long-term viability.
Impact on Existing Stores Expanding your network isn’t just about the new store—it’s also about how it fits into your current footprint. Poorly chosen locations can cannibalise sales from existing outlets or fail to capture untapped demand. A strategic, data-driven approach is essential to ensure complementary growth.

Where Is the Best Place to Open a Store?

There is no universal answer, but the best locations are those that balance high customer potential with manageable operational costs.

Retailers must think beyond gut instinct or superficial metrics and instead leverage deep insights to uncover hidden opportunities.

For example, a high street might seem attractive, but what about smaller retail centres with untapped potential? The key is understanding the full picture, including local footfall patterns, competitor proximity, and customer spending habits.

The Risks of Getting It Wrong

Choosing the wrong location can lead to underperforming stores, wasted investments, and missed opportunities. Worse still, it can harm your brand’s reputation and derail future expansion plans. Retail success hinges on making informed, strategic decisions at every stage of the process.

How H3hex Can Help You Find the Best Locations for a Store

At H3hex, we specialise in helping retailers navigate the complexities of store location and network strategy. Our three focus areas ensure you’re equipped with the insights you need:

Site Selection Optimisation: We combine geospatial data, customer demographics, and competitive analysis to identify the most promising sites for your business.
Network Strategy: Our expertise ensures each new store complements your existing network, reducing risks of cannibalisation and enhancing overall profitability.
Performance Benchmarking: We help you measure and optimise store performance, keeping you ahead of market trends and competitors.

Our data-driven approach ensures that every decision is backed by robust insights, minimising risks and maximising returns.

How to Grow Your Retail Network Without Risking Existing Stores

Retail expansion isn’t just about opening more stores—it’s about opening the right stores in the right places. By partnering with H3hex, you’ll gain the clarity and confidence to scale sustainably. Whether you’re exploring a single site or planning a multi-store expansion, we’ll help you achieve your goals while protecting your existing operations.

Ready to find your next winning location? Contact H3hex today to get started.

Blogs