4 Reasons to Open a Second Location
Even though we’ve talked about the benefits of online shopping, many customers still like to shop in physical locations. The State of Consumer Behaviour suggests that 33% of shoppers prefer brick-and-mortar stores for the physical interaction with products. Furthermore, 61% of consumers spend more if they purchase products in person. The opportunity to serve more customers only becomes exponentially greater as your number of physical locations grows.
For retailers opening a second location can be a boon, since offering customers the option of interacting with these kinds of products without being pressed into making a purchase is so valuable in the long run. These are four reasons to open a second location:
Increased customer base
It is clear that covering more areas will lead to a higher number of potential customers. Whenever you enter a new market in a bustling neighbourhood where there is less competition and high demand, you're more likely to gain customers and increase brand awareness, leading to greater visibility.
Operational and competitive advantages
Choosing your second location strategically gives you access to wider pools of talent, vendors, and production equipment, giving you an advantage on both an operational and financial level, so you can double (or more) your production capacity two times.
Higher profits and reduced costs
Tied to the operational advantages, having another store can increase your economies of scale. This increase in operational capacity means getting lower pricing for products through larger orders, thus increasing profit margins and enhancing your company's bottom line.
This would not be a new company, but an extension of your company. Because you already know what works (and what doesn't) and how to manage your store to see success, you can build on what has worked in the past and wean yourself off of what hasn't.
So, what are you waiting for? Start planning your second location and take a bigger piece of the market. Make sure to check how you can benefit from opening a second store. Check out more blogs and news here.
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