As vice president of real estate for SportClips, Greg Smith knows a thing or several about selecting a superb site for a new salon. On a daily basis he’s working with area developers to find locations for the franchisees, reviewing market analysis on different communities and negotiating with landlords. Recently he answered some of our questions about site location.
On real estate priorities…
Smith: Your top priority is understanding who your customer is and what type of retail environment you need for success. Psychographic data will help you understand your client, where they shop and what other retailers draw the same consumer. This will help determine guide you to the type of real estate you should focus on, such as power centers, grocery-anchored malls or lifestyle centers, as well as what other retailers you want to be surrounded by.
On finding prime real estate…
Smith: Engage with a qualified real estate broker that specializes in retail and more specifically represents other retailers you want to co-exist with. A great broker will be your educator on the market, where to focus your search and help you negotiate the best deal. You can also leverage their relationships with landlords and developers as they become your brand ambassador within the local real estate community. They also provide tools you may not currently have like demographic data, aerials, competition maps, retailer maps, etc.
On entering a new market…
Smith: Again, find a broker. Then, along with the broker, create a market optimization map. This is where you ultimately want to locate your stores within a given market. This will adjust over time, but having a strategic plan will not assist with the real estate selection process.
