A good location is important to the success of a retail business. For small businesses, the advantages to opening a…smallbusiness.chron.com
A Central Business District other wise known as a CBD is described in the textbook as a “downtown commercial area in large or small cities where many businesses including retailers tend to congregate”. Living in New York City with one of the busiest downtown shopping areas you can see why a retailer might want to open a location in such a area for many reasons, but there are also a few downsides to moving into that location as well. First I will discuss the advantages of having a retail location in a Central Business District starting with the easy access people have to such areas. CBD’s are usually located in a high traffic area which means that there will be many means of transportation to this area for instance buses, trains, and cabs. In NYC it is very easy to get to the downtown shopping area as long as you know your way around the trains or buses even though it might take some longer then others. With many forms of transportation to an area brings a lot of foot traffic as well, which means a lot of people coming to spend money. Being in CBD as a retailer will have a lot of people coming in and out of your store on a constant basis and that will help your business stay afloat as well as help get your name out to people. The biggest advantage that I learned about while reading the textbook is that with a lot of businesses in your area there will also be a lot of marketing by your competitors. Although it might seem like a bad thing at first, instead of you spending money on marketing you can use the foot traffic your competitors bring in from their marketing to reel in those people to your business. Use the extra money from marketing to make your store pop at it’s location so people want to go inside your store instead of your competitor. Now the disadvantages might not seem as important because of the upsides I just mentioned but they are something’s a retailer should thing about such as the amount of rent they might have to spend to get into this CBD. In New York the prices downtown are sometimes insane which will take a toll on your businesses income if you don’t have the right amount of traffic flow. In the second article I attached you can see that this isn’t a problem for every city. In California it is much easier to afford the rent in a CBD then it is to afford in New York. The last disadvantage that I can think of would be the amount of well-known brand stores that a small business would have to compete with if they wanted to move into a CBD. If your brand is not known as well as others you will have difficulty in bringing in foot traffic so it would be wise to think about that before moving into such a location.