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Checklist to discuss upon new store location decision

After a new store opens, sales and profit budget responsibilities of the store would be taken by Store Operations team. It is vital for Store Development team and Store Operations team to discuss deeply, build trust and form consensus about various issues of the candidate site in order for the new store to achieve a success after opening.

The CHECKLIST below shows common discussion items that should be discussed internally upon making a decision on new store location.
Store Development and Store Operations should discuss these discussion items from the same perspective and forecast the new store sales.
Then, profitability should be simulated based on the sales forecast, taking the rent and the labor costs into account.

If these numbers cannot fulfill internal “go” criteria, Store Development should renegotiate economic conditions, floor space, sign visibility etc. with the landlord. Only when the numbers fulfill internally agreed “go” criteria, the real estate site becomes the new store location candidate, that proceeds to agreement stage with the landlord.

CHECKLIST (in English)

Category Discussion Topic Discussion Items





Market (Trade-Area)

Data Store front traffic (passersby, car), TG (Traffic Generator), Incoming and outgoing train station passengers, etc.

Demographic data within hypothetical trade-area (income segment, population growth, age segment, total annual retail sales turnover, car ownership ratio, etc.)

Information about the commercial facility of tenant owner (Population within facility, total visitors, number of tenants, total annual sales turnover of the facility, etc.)

Transportation Foot, Bicycle, Car, Train, etc.
Customer Type Age, Gender, Occupation: ratio by time of the day
Future Business Potential Redevelopment plans, Renovation plans (whether traffic line change or not in the future?)

How many stores to build in the neighborhood? (sharing of the market completion image)

What concept store or brand to develop and where?  What are the roles of each store (design, usage purpose, etc.)?


Competitive Environment

Competition Competitor: Store development plan within the area, Location, Sales, Store size, Sign, Number of clerks, opening hours, customer segment, etc.

Existing stores (of own brand):  Profitability, Contract condition and status, Renovation plans, etc.


Real Estate Site Conditions

Visibility Is the location easy to recognize by users?

Is the storefront width enough?

Is it possible to put up the sign effectively? etc.

Traffic Line Volume / strength / direction / necessity

of storefront traffic

Layout Plan Size (number of Tsubo*), Number of seat,

Opening hour,Seat turnover rate, etc.


Profitability etc.

Business Contract condition, Contract years, Economic requirement, Profitability, Investment recovery ratio, Cannibalization to neighborhood existing stores, etc.
Credit Corporate registration of the building / land

Landlord’s credit research results, asset situation,

personality, etc.

 * Tsubo is a Japanese unit of area measurement for real estate.  1 Tsubo is about 3.3 square meters.


 CHECKLIST (in Japanese)

分類 協議事項 具体的な内容






データ 店前通行量(道路交通量)、TG、駅乗降客数など






来店手段 徒歩、自転車、車、電車など
客層 来店客の年齢層、男女比、職業構成などの時間帯別の変化
将来性 再開発計画、改装計画の有無(将来動線が変わらないか?)






競合店 エリアへの出店数、立地、売上、面積、看板、店員数、営






視認性 利用者にとって認識し易い場所か、間口は十分あるか、効果的な看板掲出が可能か、など
動線 店前を通過する利用者の量(強さ)、方向、必然性など
レイアウト案 坪数、席数、営業時間、座席回転率など


ビジネス 契約形態、契約年数、経済条件、利益率、投資回収率


与信 出店するビルや土地の謄本