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ESSAY: Store Location Case Study

Instructions: Read the case study “How to Choose a Location for a Boutique” located in the Lessons area (Case #13). For each location, address the following:

– List the positives and negatives

– Analyze what type of a retail store would be more appropriate

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– Select which one site is best for Stephanie and explain why


There are many factors that have to be considered while trying to implement a business idea. One of the most important factors to consider is location since it determines among others, the accessibility of the business, the pricing strategy and eventually the amount of profit that any business can make (Read, Sarasvathy, Dew & Wiltbank, 2016). This case study presents an evaluation of three proposed locations based on advantages and disadvantages and finally based on the evaluation, a single location is proposed specifically for the boutique business to be implemented by Stephanie.

The Downtown Arcade


This is one of the appropriate locations that can be considered by Stephanie owing to the many advantages that it has. First and foremost, it is centrally located within the CBD which implies that it has easy access by most of its clients. Secondly, the arcade is set to be renovated as per a new master development plan with many new stores and departments. The stores may host tenants who may be potential clients for Stephanie’s business. There is also a ground floor entrance that not only provides easy visibility but accessibility as well. The arcade also has moderate rent which is $ 20 per square feet which translate to $ 18,000 annually. The renovation may be a potential source of more clients. During business hours, the location may attract a lot of traffic that translates to more sales.


The arcade has been vacant for a long time which implies that it could be disserted and forgotten by potential clients. There is a challenge of rent since if sales exceed $ 225,000, the rent is recalculated at 8%. It is also disadvantageous as the minimum period of lease is only 3 years. The place is also prone to shoplifting besides having limited space for packing. This location is subjected to increase in security costs and safety.

Tenderloin Village

Advantages It is located within the refurbished urban within the city which implies that it attracts more customers. This is also a location where Stephanie resides and it has proven to be neat and comfortable. It is also advantageous that the landlord already knows Stephanie which translates to friendly relationship and a good starting point in negotiating…

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