Why is the Store Location in Grocery Retailing Important?

If you intend to succeed in the competitive market, then your business should be appropriately positioned. You might have exceptional services, but with poor positioning, you won’t get the right returns. It’s always essential to do a business location analysis, especially if you intend to run a grocery retail shop. A grocery shop position encompasses several factors that create an appeal to your desired customers, and it also puts off people who you don’t consider as customers. If you haven’t considered the effect of your grocery store location when setting up a retail store, then here are reasons why it’s important to prioritize a store’s location.

Availability of Traffic, Visibility, and Accessibility

Most retailers would want to set their grocery store near their target market. If you intend to have a small grocery store, you might benefit from the heavy traffic created by huge stores that are nearby. Say you want to set your grocery shop in Minnesota; marketing experts at https://www.phillipsedison.com/space-for-lease/Minnesota would advise you to seek help from a leasing firm who will help you find a variety of shop sizes with different customer traffic. A good business location has ample parking space, you can quickly move in and out of the parking lot, and it has good customer traffic to sustain the business. A grocery store should be visible, accessible, and have at least 1,200 square feet of space and at least ten parking spaces. 

The Right Neighborhood

Grocery stores should be placed in a neighborhood that appeals to customers. When searching for a store, consider the available amenities, the appearance of the shop, and its accessibility to customers. The setting dictates the number of customers you receive each day. The neighborhood appearance is also essential. The availability of community spaces, parks, quality landscapes, and trees in the neighborhood might attract customers. Furthermore, areas with low crime rates are ideal for doing business since clients feel safe when walking around. 


The store location determines the amount of competition that you will face. You want to set up your grocery shop near businesses that complement you and not close to competitors. Also, if you wish to set slightly higher prices and reap higher profits, it would be best to position your shop near an upscale neighborhood. You would also want to have very few competitors along that street, and if possible, the store should be located near entertainment venues or restaurants. 

Zoning Regulations

Some places are strictly residential; therefore, you can’t set up a grocery business in that location. A grocery store should be placed in a common area where it’s legal to sell stuff. It’s essential to contact local authorities and establish the ideal places designated for the grocery store business. Also, you can look for ways to get licenses and consent that will enable you to run your business in your area of choice. 

Accessibility of Suppliers

As a grocery store owner, you will need a constant supply of fresh produce each day. The availability of suppliers will influence your business location since you will want goods delivered faster. Consider setting up your store in a place that’s easily accessible by suppliers, such that business runs smoothly.

Safety and Convenience

If you have an established business, customers will gladly make long journeys to purchase grocery items. However, if you’ve recently set up your shop, it should be in your best interest to set the store close to your clients. Considering that you are running a grocery store, setting the shop in a street where clients are shopping would be convenient as opposed to having your store near the hardware. The safety of the location, along with customer convenience, will dictate your profit margins. 


The level of security in your preferred business location will dictate the number of customers who will access your store. It would help if you considered having a grocery shop in a building that has security guards and cameras and alarms should be installed. The right location gives customers a sense of security; thus, they are free to shop at any time.

Cost of Renting in a Given Location

The cost of leasing a shop influences a person’s decision to pick a given location. You have to evaluate whether the cost of leasing in a particular neighborhood is sustainable before venturing into the business. 

The store location is an essential factor to consider when setting up a grocery retail shop. Before you settle on a store, consider whether all these factors have been considered and if you find it difficult, you can always consult store agents who will simplify the entire process. Remember, a good location will directly influence your business success.