Retailing is all about making the product available for the consumer. The consumers have distinct behavior patterns, with some satisfied with products available nearby and others willing to travel for the desired product. Consumers also prefer not to step out of their comfort zones to access products. With these varied behavior patterns, the retail industry has reached significant heights in the market. Retail holds crucial importance concerning its place, price, product, and promotion.

Price and products are essential to every customer, but effective promotion automatically generates market interest. Making products available at all places is key. The four Ps - Place, Price, Product, and Promotion - are crucial for every retail organization.

Benefits of Space Planning:

Adequate space planning techniques empower retailers with end-to-end control of merchandise. This display attracts more customers, minimizes stockouts and operating costs, enhances inventory productivity, increases financial performance, and ultimately boosts profits for the retail outlet. Retailers can drive top-line sales, achieve overall good returns on invested capital.

The traditional space planning process is adjusted to meet localized customer needs. Retailers should move away from developing prototype store layouts, recognizing that no two stores are alike. Maintaining store-specific plans by gaining more knowledge about individual stores is essential.

Effective planning of retail space and its proper management are key factors in the merchandise planning and execution lifecycle. More retailers are acknowledging that space management is integral to any retail business.

Important aspects to consider before selecting Retail Place:

  • Is the area or location well-populated?
  • Understanding the advantages and disadvantages of the location
  • Factors to be considered
  • Understanding traditional and modern issues of store location

Retail place plays a crucial role in the success of the retail unit. Additionally, the importance of good merchandise, a better customer experience, and effective sales promotion is undeniable. The location or place of the retail outlet determines the smooth functioning of the unit, and improper locations can adversely affect profitability. If retail destinations are not appropriately located, the employees working for the retail outlet may require higher compensation.

There are also other areas like financial, commercial, political, technical, economic, religious aspects which are also to be considered before finalizing the place of a retail outlet. The transportation and availability of raw materials and accessibility to distributors are also very important. Other wise it becomes very difficult to procure the different variety of goods for distribution. This will increase the cost of the good and also the longer shelf life of the products. Any marketing strategies adopted will not encourage the marketing personnel as the goods will not move from the shelf. Procuring, preserving, placing, promoting and profiting from the goods are very essential to all the retail outlets. It needs judicious planning and perfect placing of the retail unit is very essential. There fore the first success of the retail outlet is the ideal place of location.


Store location is onetime, long-term and a judicious decision. Once decided there is no going back on the decision. It will result in ultimate success or total failure of the retail outlet. It can neither be repeated nor reversed.


The decision of place or location mainly arises when:


  1. A new store is launched
  2. When there is expansion of the existing store
  3. When technological changes take place
  4. When there are more customers to the market
  5. When there is a new product launched
  6. When a product has place significance
  7. When the products pricing are well controlled by the market forces
  8. Changes due to economic and global reasons
  9. When the need for centralization or decentralization arises
  10. When there is a need for opening or tapping a new market
  11. When the lease duration is exhausted
  12. When the existing area is jammed with traffic, no proper vehicle parking facility
  13. Other uncontrollable factors influence the shift of the retail outlet, like:
    1. Local law and order
    2. Transportation
    3. Proximity to customers
    4. Central place
    5. Available resources and funds
    6. Labour availability
    7. Parking facilities
    8. Other allied services like municipality and sewerage
    9. Taxes and costs


A new store needs an ideal and attractive location. The place is the least compromised area for any retail unit. Along with this the entry into the market with proper advertisement and pomp and show is also essential.

When there is expansion of the existing store, it's essential to add more products. These should be in tune with the existing products, which will create a status of a destination stores. That is a similar product, in one place of shopping. This will enhance the importance of a show room.


Technology changes along with time. In order to continue in the market it is very essential to go with the trendy and latest methods. When old becomes outdated, new has to be intensely welcomed. Other wise any business will be shown the exit gates.


More customers are more business. It is also a word of mouth advertisement. Though not all customers will generate business, they are sure to create advertisement and awareness in the market.


The author is working in the capacity of a Lecturer, Facilitator and Student Counsellor at different places and is PG and MS in Psychotherapy and Counselling