Retail site selection: catchment, co-tenancy and foot traffic
How to judge a retail location — the catchment, the neighbours, visibility, parking and the turnover-rent question.
Reviewed by Joe Sokolic · Updated
In retail, the site does much of the marketing. A great shop in the wrong location struggles; an average shop in the right one thrives.
Catchment
Who lives and works within a realistic travel time, how many of them, and do they match your customer? Primary catchment (5–10 minutes) does most of the work for convenience retail; comparison and destination retail pull from wider.
Co-tenancy
Which anchors and which other stores are in the centre or on the strip? Complementary neighbours drive shared footfall; a weak or emptying centre drags everyone down. Ask the landlord for the current tenant mix and vacancy.
Visibility and access
Passing traffic count, whether drivers can see the shopfront and turn in easily, signage rights, and pedestrian flow past the door. A unit set back or around a corner trades below one on the main run.
Parking
Enough bays, close, free or cheap. For most South African retail, parking is decisive.
Turnover rent
Larger centres often want a base rental plus a percentage of turnover above a threshold. Model it on realistic sales — a percentage-rent deal can be fair, or can penalise you for doing well. Negotiate the base, the percentage and the threshold together.