Case study on Pluses and minuses of each location

Pluses and minuses of each location

The location of a boutique store has a significant contribution to the success or failure of a business. The location can serve as an advantage or a disadvantage to business as it influences the flow of the target market (Cater, 2009). The location of a fashion business influences the sales due to factors like traffic, lease accessibility and geographical location. Stephanie is considering the three locations in which she intends to put up a ready to wear boutique. Stephanie has the relevant knowledge from that is very crucial in running the business and its expansion. In addition, she has the desire to have the own a business. These form the internal factors that lead to a business success (Tănase, n.d)

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Tutor Victor

Before considering the location, she has to consider how each location is beneficial to her type of business. She also has to put into consideration the length of time before the business will begin generating revenue in each location as well as cost of building the clientele. In the case of Stephanie, each of the location has various pros and cons that she must consider before making her choice on the best.

A retail location a business is the backbone of the business success. Apart from the traffic and easy target for marketing purposes, the business location will also influence on the security and the quality of services that a business can deliver.  In addition, the other factor limiting the business location is the expenses and travel tat form part of the hidden costs that in many instances lead to loss in the business location choice is also determines the customer attraction. The direction of business location also determines the possible location in which the business should be planed (Cater, 2009).

A good business location considerers the effects of general appearance like the environment.  a good environment will make the business more appealing to the customer and fall . a good location also helps reduce the vulnerability of the business from  completion. A good location also considers the cost of the site and how much the business will have to generate revenue to cover back the expense. A good location will also consider the influence of traffic. Where more traffic is present, the higher the target. For the case of Stephanie, these are the crucial factors about the importance of crucial of choosing the best position (Pearson, 2007).

The downtown arcade

The pluses of the downtown include its location at the city’s central business district therefore open to numerous opportunities. This includes attracting a high number of foot traffic, which is crucial in driving up sales. The proposed renovation of the arcade in the redevelopment plan will contain new department stores and offices to which the store can expand to later. In addition, the presence of the three level shopping facility with numerous shops, restaurants and other amenities like ample parking and a convention center is an advantage. The location also has a high visibility due to its situation on the ground floor with moderate rent and ample space.

The minuses of the location include the limit at the period under which the location can be leased limited at three years. This has a limitation on the future planning to expand the business. Secondly, Rent is dependent on sales, which implies the higher the sales, the higher the rent. The location has been unoccupied for quite some time. This is challenging in establishing new customers.

Tenderloin village

The highest plus for this Location is its situation in urban area that is gifted same as Stephanie’s place of residence. It has excellent visibility due to its situation on the village’s main street. In addition, the location has the least rent among the three location and not dependent on the coverage clause. It also has the shortest lease period and Stephanie is familiar to proprietor, which is her advantage in getting the minimal lease.

The main disadvantage of the location has high competition due to the presence of other clothing stores in the already established three specialty shops for women. It also receives less foot traffic as compared to the other locations.

Appletree mall

Among the pluses of the location enjoys substantial success history due its situation on the major interstate highway giving it an excellent geographic location. It has three departmental stores offers the largest space that the other three locations. Considering the previous sales data presented by the mall, it indicates an increase in sales, which is an indication of potential business success. It also includes an escape clause in case it fails to achieve agreed sales with a period of two years.

On the minuses, the location has the highest rent annually. It also contains additional rates that arise from maintenance and promotion. In addition, the minimum lease period is the longed as compared to the locations that is five years.

Ideal business types in each location.

Several factors influence on the specific type of business that is ideal for any type of store. These factors include the foot traffic flow, which forms an easy target market.  The other factors include space, how presentable is the location, and availability of space. In the case of the three locations considered by Stephanie, the possible types of stores include.

In the downtown arcade, the location will be ideal for any form of retail business. These businesses include clothing and restaurants. This is because the location is among the important center in the downtown trade. In addition, the place is moderately spaced. The presence of large high foot traffic makes an easy target market. The location is also set to be major shopping center and future restaurants more likely to optimize business.

In the Tenderloin village, the location is ideal for clothing business or flower shops. It can also serve a good purpose for vegetarian’s stores as well as the restaurants nouveau cuisine. The premise has just been renovated and it location in the village’s main street makes in more suitable. The location is also neat and presentable making such business excellent.

The apple tree mall can best serve the departmental stores and stores for shoe and clothing. The location can also be ideal as a fast food business as well as the stores for general retail.  The location is ideal for this type of business because it is sub urban mall with ample space of 1200 Sq. feet. 

Best location for Stephanie

Before considering the best location, Stephanie has to make several critical decisions and analyze the benefits of each location. Analyzing from the three stores, Tenderloin market is well kept and offers the advantage of close proximity to her home. This will reduce her expenses while traveling to other locations and will be convenient to avoid the race cause by traffic and congestion. It therefore serves as the best location for Stephanie to set up a ready to wear boutique business. In addition, she faces low competition from only the 20 retailers in the mall as compared to the other location where she has to compete with bigger restaurants and more than a hundred retailers. Lastly, her familiarity with the property owner gives her an advantage of obtaining the lowest lease of two years, which is impossible to get in the other locations. This will save her the money to boost her business. The location does not require additional rent based on sales, which is advantageous to Stephanie.

In conclusion, setting up a business go behold just choosing a building and setting it up. Various procedures and analysis are crucial to look at before making decisions. These include location of the business, the traffic, availability of minimal lease, completion among other. In in several other times, location forms the best priority as it leads to performance. While considering the location, it is also important to consider the alternative business in case the first fails to perform as expected.


Cater, J. J. (2009). Rebecca’s Boutique: Starting Her Own Business. Journal of Business Cases and Applications2, 6.

Levy, M. and Weitz, B. (2012).  Retailing management, 8th Edition.  New York, 
NY:  McGraw-Hill

Pearson, J. (2007). A comparative business site-location feasibility analysis using geographic information systems and the gravity model. Papers in resource analysis9.

Tănase, G. C. Trading Area Analysis and the importance of location to Retail Companies.

Valkjärvi, M., & You, W. (2012). Business plan for a fashion brand: case: MW Oy.