Factors to Consider When Finding a Location for Your Gourmet Gift Shop or Gift Basket Business (Part 1)

Location! Location! Location!


There's an old saying in the real estate business that goes something like:

    There are really only three important things in real estate: location, location and location.  

The location that you choose for your gift shop or gift basket business may be one of the most important of all the decisions that you'll be making as you start your business.  A bad location for your store can almost guarantee the failure of your store, while a good choice can go a long way to assuring its success.  The first step in making this critical decision is somewhat influenced by your own tastes.   You'll probably want to locate your gift basket or gift shop in an area that you like and / or personally feel comfortable.  It may even an area in which you would like to live.  It's logical that if you'll like the kind of people who reside in the area that you're considering to locate your shop to be attractive, you'll probably enjoy them in your store.  It is vital to your store's success that you like its potential customers!

The importance of your gift basket or gift shop location becomes more apparent when you're aware of how people shop. Women, (who have a disproportionate influence on the overwhelming majority of purchases of all types of items) tend to value convenience of location second only to and service when they select a store at which to shop.  


Your Product Mix Affects Your Store Location


Another factor that affects the selection of your gift shop location is the mix of merchandise that you plan to offer.  Consumers tend to divide retail goods into three types of shopping experiences:

•     Convenience
•     Shopping and
•     Specialty

You must determine exactly the type of products that you wish to offer in your gift basket or gift store and ensure that your location is consistent with this product mix.  

Convenience goods usually sell for lower unit costs and are purchased regularly.  Generally, consumers buy these types of products often and with little effort (e.g. candy, cigarettes, milk etc.)  Stores selling these types of items typically should be in heavy traffic areas and should be easily accessible for both pedestrian and car traffic. Plazas near residential areas are usually good locations for retail stores offering these types of products.  

Shopping goods are items that consumers buy less often and normally require a higher and more intensive selling effort on behalf of the gift store's sales staff.  Examples of these types of products include furniture, business clothing and large appliances.  Most consumers will "comparison shop" when they purchase these higher-priced, "big ticket" items, so gift stores offering such items should be located close to other traffic generators, such as department stores.  

Specialty goods usually sell for higher unit prices, are purchased less often, and are often "pre-sold" because of a famous brand name. Examples of this type of merchandise include expensive jewelry, perfume, upscale clothing and other luxury items.  Generally speaking, stores that sell specialty goods do best when located near other specialty stores.  Large shopping malls are often home to a wide variety of specialty retailers.  Typically, gift basket companies and gift shops offering gourmet foods in their product mix will be considered to be specialty retailers selling specialty goods to a more affluent market and should consider locating in such an area!

Phyllis and Greg Sprout began their company, epicureanfoods.com, in July 1993.  They specialize in supplying hard-to-find gourmet foods and gift basket supplies to gourmet shops, gift shops and gift basket companies across North America. 

They have helped the founders of literally thousands of gift, gourmet food and gift basket companies start and grow their businesses.  Many of these companies remain excellent customers of epicureanfoods.com today.  They can be reached at phyllisandgreg@epicureanfoods.com.