The Effect of Store Location Selection Criteria on Sales Forecast in Brazil

Many factors must be considered when an entrepreneur starts a business. Among them, a location that involves long-term commitment and high investments, especially for small and medium businesses, is of great importance. To examine this further, this paper measured the effect of store location selection criteria as applied to a chain of small stores situated on shopping streets in Brazil. This study examines the location importance model for retailers. By utilizing robust empirical data from a unique case study, this research extends our understanding of location selection criteria. Simple regression analysis is employed to assess the individual impact of each variable, while multiple regression analysis is used to predict store performance for both existing and new locations. The major finding of this paper is the proposition of a reasoned method for small and medium-sized retailers to evaluate the effects of influential factors in their decision-making process for choosing a store location. The research assessed the impact of various selection criteria on store performance forecasts. This research contributes to the literature by expanding knowledge about location selection criteria through the perspective of small business entrepreneurs, and it presents a clear and systematic method tailored for small and medium-sized retailers. This study validates a predictive model that can be replicated in the organizational contexts of other comparison goods retailers.