How important is Foot Traffic When Looking for a Retail Location?

What businesses Benefit From Increased Foot Traffic?

Businesses that rely on walk-in, impulse, or convenience-driven customers will benefit most from foot traffic. The five categories that fall into these businesses are Retail, Food & Beverage, Personal Services, Health & Wellness, and Entertainment.

Retail

• Clothing & fashion boutiques

• Convenience stores / bodegas

• Pharmacies

• Bookstores

• Gift shops

• Shoe stores

Food & Beverage

• Coffee shops & cafes

• Bakeries

• Fast-casual restaurants

• Ice cream / dessert shops

• Bars

• Food trucks/carts

Personal Services

• Nail salons & barbershops

• Dry cleaners

• Phone repair shops

• Tailors

Health & Wellness

• Juice bars

• Vitamin/supplement shops

• Yoga/fitness studios

Entertainment

• Arcades

• Photo booths

• Novelty/souvenir shops

Conversion Rates and pedestrian traffic

Simply put, the higher the foot traffic, the more potential customers your business has. However, there are nuances. For example, a phone case kiosk on a residential block full of townhouses will have a different conversion rate than a kiosk near the subway station, even when equalizing all other factors.

Perhaps the most important data point is the ratio between cost per square foot and foot traffic. While it is obvious that Midtown will have more foot traffic than Astoria, it could still be beneficial to open a high-turnover business in Astoria because the ratio of cost per pedestrian is actually lower.