STEP 1: LOCATION

Any retail business’s success or failure is determined primarily by its location. Because it is the first step in starting a new firm, its importance will determine whether or not the business succeeds in the long run. According to research, a lack of adequate sales is the leading cause of retail business failures, with location being the most important element influencing sales. Sales are primarily determined by location, particularly in stores that sell items purchased because of the store’s convenient location. Location analysis is critical not just for avoiding business losses, but also for increasing business success.

Lately, there has been an increase in the use of extensive research and tools in the retail site selection process. One valuable tool that can be employed is the research of purchasing behaviour. Although it can be difficult to assess and evaluate purchasing patterns, they are an important factor to consider when considering location analysis tools. Because purchasing habits vary depending on the kind of products purchased, it is critical to investigate the various types of consumers. Consumer products can be divided into three categories: convenience goods, shopping goods, and speciality goods.
Convenience goods are those that take the least amount of effort to obtain. They are typically inexpensive and purchased as soon as the buyer has the desire to do so. Convenience businesses are often neighbourhood stores with low average sales. They rely significantly on local residents. The neighbourhood retail pharmacy is an excellent example of a convenience store, and this will be our primary emphasis.
Shopping goods are often acquired after a customer has compared quality, price, and style in several stores. These transactions typically entail a large amount of money, are less common than convenience products, and may not occur until some time after the client has decided to buy. Because of these features, shops that sell shopping products have discovered that it is most successful to place their establishments close together to allow customers to browse around more easily. For instance, the wholesale shops on Wilson Street.
Many people are willing to go over and above to purchase speciality  goods because they have a distinctive attraction. Quality is the major factor driving their attractiveness, and customers are frequently ready to overlook any hardship associated with visiting a speciality store. These stores are typically found in or near central or bigger secondary shopping centres.

As a city grows in size, the percentage of possible retail businesses secured by stores in the central business district diminishes. The shift in sales from the central business district to suburban areas makes choosing an appropriate site more critical than it has ever been. One of the most essential aspects of the location patterns section is that approximately 80% of a store’s customers reside within a one-and-a-half mile radius of the store, and an equal amount spend the majority of their money there. People are naturally drawn to the city, therefore the majority of clients live on the outboard side. Therefore, a vehicle plays a highly important, perhaps the most important, role in the customers’ purchasing habits, and all future locations should evaluate even more closely such factors as adequate parking facilities, proper side of the street location, distance from the corner, relative building visibility, and access.
Over recent times, small retail pharmacies have faced an increasing challenge of low-margin, high-volume competitors including major chain pharmacy businesses. Nonetheless, upcoming retail pharmacies can capitalise on the competitive advantage of convenience to retain clients who would otherwise be motivated to buy at a less convenient store with lower prices. They can accomplish this by paying closer attention to location characteristics. Any change in traffic patterns along major routes must be thoroughly investigated. However, upcoming highways could reduce traffic along these routes, reducing their competitive advantage. Because the majority of the store’s customers lately drive there, none of these aspects can be overlooked. Another element that many pharmacies have underutilised is the store’s visibility from the street. A store owner cannot presume that everyone in his trading area will know where he is simply because they drive past it. Regardless of how long he has been in the current location, he must endeavour to attract all clients, both local and new, with the same zeal as a new business.

In conclusion, the significance of location in setting up a pharmacy cannot be overstated. A strategically chosen location can be the difference between success and failure for a pharmacy business. Ultimately, investing time and resources into choosing the right location is an essential step towards building a thriving and sustainable pharmacy business.