Originally Posted by
percy
Location of any retail business including a butcher's shop is most important.
Top location usually means paying top rental.Shopping Malls are most probably the top retail location.
So are all tenants in the mall equal? NO.The major attractions like supermarket,The Warehouse,The Farmers pay a lot less rent per sq metre than the speciality stores such as Paper Plus,Chemist shop and Postie Plus.We therefore see the likes of Harvey Norman,The Mad Butcher going to destination type stores.What they save on rent they can use to attract customers.
So when a speciality store sells the same as the supermarket they have an even higher hill to climb ,as most of their customers are already going to the supermarket,and can put off making a special trip to that destination store.
Remember I have only been to The Mad Butcher once to buy a leg of lamb they had on special.I buy our steak from the butcher's shop at Barrington Mall ,yet buy all our everyday meat/chicken supplies from a supermarket.