Kristian Tolbod, a director of kitchen and bathroom retailer Premiere Klasse, which has branches in Basingstoke and Ascot,shares his thoughts on how to get it right
Choosing the right location for a kitchen and bathroom showroom can be the make or break of your business. The location should align with your target market and offer convenience for your customers. Here, I would like to share some of the key factors Premiere Klasse considers when choosing a location for our showrooms.
Demographics and target market
Understanding your target market is essential. Analyse the demographics of the area, including age, income levels, property types and lifestyles. Consider the preferences of your potential customers for kitchen and bathroom designs. We cater to a high-mid to high-end market, so we seek locations in affluent areas. Conversely, if your target market is more budget-conscious, opt for a location with middle-income demographics.
Accessibility and visibility
Accessibility is crucial for attracting foot traffic. We will always prioritise a location with easy access for both pedestrians and vehicles with proximity to major roads and parking facilities either on-site or extremely close – parking should also be free. Visibility is key for attracting potential customers. A location with high foot traffic or visibility from a busy street can increase the chances of attracting walk-in customers.
Competitor analysis
At Premiere Klasse, we conduct thorough research on existing competitors in the area, identifying their strengths and weaknesses and assess their target market. While some competition can be healthy, too much saturation in the area results in a race to the bottom and a price war. We look for locations where we can create a niche or offer unique products and services compared with the local competitors. Similarly, if there are no other showrooms in the area or there have been unsuccessful showrooms in an area, this is normally a warning sign. Sometimes your idea has been tried and tested before – learn from others.
Utilities
Check the availability and reliability of essential infrastructure and utilities, such as electricity and internet connectivity. We believe a showroom can come to life with proper lighting and display set-ups but more importantly we rely heavily on our interior designers being able to produce first-class visuals and renders within the CAD software, so internet speed is one of the first things we check when considering a location.
If there are no other showrooms in the area or there have been unsuccessful showrooms in an area, this is normally a warning sign
Economic trends and development plans
Research the economic trends of the area and any development plans in the pipeline. A growing and thriving community can contribute to the success of your showroom. However, you do not want to have a showroom in the middle of a new estate where the homeowners don’t need to renovate for 10+ years. We look for areas with a positive economic outlook and ongoing development projects that can attract more potential customers in the future, but also encourage renovation works locally. If the local planning council is approving multiple housing developments in an area, this is a good indication of local growth, but also the existing local residents will more than likely be approved for renovation works.
Cost considerations
Before signing on any location, we consider the overall costs associated with the location, including rent, utilities, taxes, and maintenance. This gives us our month-on-month fixed costs from which we can forecast our return on investment. There are a few locations we have investigated where we have concluded that the cost of property is not in line with the area or local clientele. Another indicator is when the independent shops move out and only nationals are left. We also create an in-depth quotation for the renovation of the building, just as if it were for a private client, so we are confident we know our upfront costs. And we do not let suppliers push us into displaying products that they are targeted on rather than the best products for our clientele.