A great location has high traffic counts.
By car, by train, by rickshaw, by scooter, by foot or by bicycle, a great location needs lots of traffic to be successful. Lots.
In an ideal situation, the traffic is constant. It is possible for a business to be successful with intermittent consumer visits and even cyclical ones. Beach and mountain retail environments function within this paradigm. It is, however, preferred that consumers frequent a retail location on a regular, high-volume basis. A retail property that boasts high traffic counts of any sort has a higher propensity for more consistent transactions. That’s the main reason why these types of locations should be sought out.
High traffic counts yield great visibility for the retail property and the tenants within it. This is an opportunity for market conversion, i.e., the chance to see if a well-merchandised storefront window or a busy restaurant patio attracts customers from among the crowds. Secondly, the landlord and tenant share similar forecasting benefits. On the landlord side, understanding how traffic patterns effect the wear and tear of the property allow for better staffing, trash removal and utility usage. Those lessons hold true for tenants as well. Yet, tenants may also gain a more firm grasp on how quickly certain items sell and at what price point. So, the high foot and vehicular traffic can be used as a real-time pilot or focus group. We can all point to the anomaly where a retail location is wildly successful in an area with very low foot traffic. That may be true, but that truth exists in spite of the low traffic, not because of. In this case, less is not more.