George,
There are a number of issues that you need to consider before you take the “giant leap”
1) How much smaller and how much more expensive is the new unit? Can you sustain the increased costs (if sales are slow to increase in line), and can you display what you need?
2) As you have remarked, it’s not just the volume of footfall that matters, but the quality (and spending power) of that footfall. I certainly subscribe to the argument that you will struggle to sell quality goods in a downmarket establishment (just think where the boutiques are located in relation to the Primarks of this world). It’s where YOUR target market (ABC1s) shop that matters to you – find them and locate there!
3) For creative industries, I also strongly support the idea of the “cluster effect”. A couple of galleries, small boutique shops, independent coffee shop and some niche retail makes much more of an experience for the shopper and is more likely to lead to impulse purchases as well as planned purchases
Without seeing the facts and figures it’s impossible to provide sound business advice. However, reading between the lines your heart’s set on this location and you instinctively know that the investment is the right thing to do for your business – so go for it! But remember – retail’s in the doldrums at the moment so drive a hard bargain with the agents!!
Comments
Thanks for the advice,
Firstly I believe the quality of footfall and cluster of galleries will certainly improve my sales. How much it will improve my sales is a hard one to ascertain. I have calculated how much I need to sell and how I’m going to instigate those sales. For me personally I feel this is the next step, yes the unit might be smaller but I certainly feel I’m growing, personally with regards to business development and also that of my gallery exposure / prestige etc (if that makes sense...)
Yes, you’re probably right, in my heart I have fallen out of love with my current location and am looking for the next step. I feel confident with my choice and research plus I don’t want to regret wandering what may or may not have happened if I hadn’t made the ‘Giant Leap’! Business is about taking risk right?? I know, there is actually a greater risk I may go bust but hey.. You’ve got to be in it to win it!
It’s kind of weird, when I signed the lease for my current location I pretty much signed everything without thinking... Now I’m a lot more cautious, which actually in a funny way feels worse as I know what I’m letting myself in for... I’m really pleased with the way I have bargained and dealt with the agents. I feel both parties have conceded slightly so the deal can’t be too bad! Well, we’ll have to wait and see??
Thanks again for your help.
George