Final answer:
To start a new retail store, assess the product assortment and customer appeal, use models like Hotelling and Huff to understand retail patterns, and consider competitive strategies and store layouts for the best customer experience.
Step-by-step explanation:
When considering starting a new retail store and picking a competing store in the same sector, we must assess the assortment of products offered and their appeal to specific customer segments. Drawing upon concepts like the Hotelling Model and Huff Model, we can understand the significance of location, customer behavior, and the competitive landscape in retail.
In the context of the assortment, we analyze the mix of products which should cater to the targeted customer segment's needs and preferences. Additionally, the layout of the store is pivotal in enhancing customer experience. For instance, dividing a superstore into different sections such as furniture, household goods, and clothing on separate floors can provide a controlled and logical shopping experience for customers. Competitive strategy also plays a role in differentiating a new retail concept from existing competitors, which could include unique product offerings or supplementary services.
Applying the concept of place product packaging, a consistent architectural design and layout can create a sense of familiarity and predictability for customers. For example, mirroring a successful model of interior décor and merchandise categorization, as mentioned by Carla Dawkins from Hometown Corner Store, can contribute positively to the store's brand identity and customer retention. Lastly, keeping in mind possible competition, a new store must offer unique selling propositions to maintain customer loyalty and prevent market saturation as indicated by the risk of monopolistic competitors entering the market.