Just around the Corner
And, to, overcome these challenges while selecting stores in new areas, a broad range of consumer product categories are increasingly opting for the ‘peripheral location’ strategy.
It broadly refers to opening a store in the catchment area but not in the most strategic location, but at a little distance away from
that. Also, the store located via strategy should be easily accessible to the target audience for this product or service
and the allied infrastructure facilities should also be in harmony with the positioning strategy of a particular brand. Marketing experts also stress the importance of adequate parking facilities in this peripheral location strategy.
The benefits are clearly visible – store rentals are often 30 -50 per cent lower than the most prime locations in a particular catchment, while footfalls may decline by just 20 – 25 per cent.
And, a range of companies are utilising this location strategy. For instance, Reliance Fresh near Charmwood Village, Faridabad, NCR is often cited as a benchmark. They are not alone. 6Ten in Khirki Extension, near the main Malviya Nagar Market, and designer boutiques located at some distance from the main Greater Kailash M-Block market.
Jaideep Wahi, Director- Retail at Cushman and Wakefield, said “Peripheral location strategy has caught the attention of various
brands, and it is a suitable strategy to balance revenue and costs.”
However, this strategy may not be suitable for luxury or high-end products, as their target audience of SEC A and higher may only visit the high street and allied areas, for making purchases in this category.
Subhasis Roy, National Director – Retail at Knight Frank India, said, “Peripheral location strategy does not work in the case of fine dining or luxury products. Also, a brand’s space requirement should not be too high.”
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