Expanding into a new location is one of the biggest bets a retailer can make. A single wrong site can quietly bleed money for years. I’ve seen retailers fall in love with a location because of a “great rent deal” or a “trendy neighborhood,” only to realize footfall was low, competitors were everywhere, or the demographics just didn’t match.
That’s why the smartest chains use a retail site audit checklist before signing a lease. Think of it as your decision-making safety net. Instead of going by gut feel, you score each potential site across clear parameters. At the end, you’ve got a number you can actually compare across options.
Here’s what goes into a strong store site selection checklist.
📍 Location & Accessibility (30%)
The first rule of retail expansion planning: a great store in a poor location is a wasted investment.
Check for:
Foot traffic at different times of day
Vehicle traffic and store visibility from main roads
Parking convenience for customers and staff
Public transit access
Safety of the surrounding area
Weight: 30% of your score. Because if customers can’t find you, nothing else matters.
🏬 Competition & Surrounding Businesses (20%)
Too much competition nearby? You risk being drowned out. Too little? There may be no real demand.
Look at:
Number of direct competitors in a 1–3 km radius
Complementary businesses that drive footfall (coffee shops, gyms, offices)
Market saturation levels
Vacancy or churn of nearby businesses
Weight: 20%. The right mix of competition and complement drives steady traffic.
👨🏻 Demographics & Market Fit (25%)
Your new store has to match the people who live, work, and shop there.
Measure:
Target demographic presence (age, income, lifestyle)
Household density and catchment size
Local spending power
Neighborhood growth (new housing, offices, infrastructure)
Cultural/brand fit with the area
Weight: 25%. A perfect site with the wrong audience is still the wrong site.
✅ Property Evaluation (15%)
Not all sites are created equal—even in the same neighborhood.
Check for:
Storefront visibility and signage opportunities
Size and layout fit for your format
Utilities (HVAC, electricity, water, internet)
Renovation/fit-out needs
Compliance with local zoning and permits
Weight: 15%. The bones of the property determine your upfront investment.
💲 Financial Viability (10%)
Finally, run the numbers.
Evaluate:
Rent-to-sales potential ratio
Lease flexibility and renewal terms
Fit-out costs beyond rent
Expected ROI timeline
Weight: 10%. Don’t just look at the rent—look at the total financial picture.
🧮 Putting It Together: The Scoring System
Each factor gets scored on a 0–5 scale (0 = poor, 5 = excellent). Weighted across the five categories, you get a Final Site Score out of 100.
85+ → Prime site, move fast.
70–84 → Promising but requires close review.
Below 70 → Risky; only pursue with a clear strategy.
Gut instincts might get you started, but data-backed site audits keep you safe. A structured new store opening checklist doesn’t just tell you where to open—it tells you where not to. And sometimes, the store you don’t open is the one that saves you millions.