In the right place

Good store location is critical to sales success

It's a well known fact that in the real estate world it's all about location, location, location … and the same could most emphatically be said about successful convenience and impulse outlets.

An experienced operator

Certainly, an experienced operator like Xiang Ming Wang was quick to recognise the potential of the Lucky 7 – Kirrawee Grocer store in Sydney's affluent Sutherland shire as soon as it became available. But it was not just the relatively wealthy demographic that attracted him to the store, it was also the proximity to a busy railway station and the presence nearby of commercial and industrial properties, as well as residential dwellings.

"The area is not too bad at all," he says. "We get a really good mixture of customers in here and the fact that we are so close to a railway station means we do get a lot of people coming in throughout the day."

The Kirrawee Grocer store has a floor space of about 80 square metres and is open from 7am-9pm. Ming has two employees to help him run the busy store and he must also keep an eye on the other Lucky 7 Store he owns in Auburn, further out to Sydney's west.

Ming says he will probably sell the Auburn store at some stage in the future to concentrate on the Kirrawee outlet which he purchased just a few months ago.

Good area, great potential

"This is in a better area and I think has great potential," he said. "It is a bigger store here and I think we can do some good business … I am very hopeful."

The Lucky 7 group, which completely re-designed, re-built and re-furbished the Kirrawee premises in February last year, will be doing all it can to ensure that the store's obvious potential is fully realised.

"It's a great looking store with a wood finish and a nice feel," said Lucky 7 Retail Co-ordinator, Ryan Goff. "I am sure Ming will do well here because he is an experienced operator with a well located outlet and he is in an area where there is money to be spent."

Ming was particularly well aware of the store's potential because he bought it off a friend who was going overseas … and so he had visited the premises many times.

The Lucky 7 branding was a real selling point to him as it offers locally owned stores like Kirrawee Grocer the benefits of a franchise-style operation without the fees.

"I suppose it is a bit like a franchise inasmuch as we ensure the store is nice and tidy and has a good look with aisle signs and is customer friendly," said Mr Goff. "We also offer a dedicated promotional program and give our members a business structure."

Lucky 7 supports members

Lucky 7 also offers its marketing expertise and has strong negotiated terms, promotions and supplier support that give its members a better deal than they would normally get as independent operators.

Lucky 7 supports all members via a dedicated field force that effectively act like a business consultant, offering stores as much or as little help as they need. He can do anything from offering advice on margins or ranging to re-designing a store and helping to find the most suitable fridge for an outlet.

And a new and bigger fridge … and freezer… could be just what Ming requires at Kirrawee if the customers continue to buy beverages and ice creams at the rate they are.

"For some reason it is the drinks and ice cream that are really selling particularly well," said Ming. "And the confectionery also."

While Ming is still establishing himself in his new store and learning every day about his customers and their needs, it is already becoming apparent from the constant flow of varied customers that he may well be in the right place at the right time.