In the world of retail, an old saying holds true: location, location, location. And not without reason. The location of your shop determines how many potential customers pass your premises daily, what type of audience you attract, and ultimately how much revenue you can generate. A poor location choice is difficult to correct and can make the difference between a thriving business and a struggling existence. In this article, we discuss all the factors that should guide your location choice.
Location as the key success factor
Research by the Dutch retail trade organisation shows that location accounts for 40 to 60% of a retail business's success. Even an excellent concept with a strong brand will struggle to survive in the wrong location. Conversely, a solid location can make an average concept flourish.
What makes a location good? The answer varies by sector and concept, but several universal factors always play a role:
- Footfall: The number of people passing your premises daily
- Visibility: How visible is your shop from the main walking route?
- Accessibility: By car, public transport, and bicycle
- Parking facilities: Proximity and cost of parking
- Complementary shops: What other shops are in the immediate area?
- Demographics of the catchment area: Age, income, and lifestyle of residents
A location with 30% fewer pedestrians but 50% lower rent is not necessarily more advantageous — always calculate what each location costs you per pedestrian.
Analysing footfall
Footfall data form the foundation of every location decision in retail. But how do you obtain reliable footfall figures?
- Locatus: Locatus collects and analyses footfall data for virtually all shopping areas in the Netherlands. Their Retail Facts database offers insight into footfall frequencies per street and per time of day.
- Your own counts: Visit the location yourself on different days and times and count the number of pedestrians. Do this at minimum on a Tuesday (quiet day), Thursday (late shopping night), and Saturday (peak day).
- Municipality and BIZ: Many municipalities and Business Investment Zones (BIZ) have footfall counts they share with interested entrepreneurs.
Pay attention not only to the total number of pedestrians but also to the type. A busy shopping street with predominantly teenagers is less interesting for a luxury furniture store than a quieter shopping area with consumers who have purchasing power. Also analyse seasonal patterns: some shopping areas are considerably busier in summer due to tourism, while others peak in autumn.
Retail mix and competition
The composition of shops in a shopping area — the retail mix — directly influences your revenue potential. Two opposing forces are at play:
Agglomeration advantage: Shops in the same sector together attract more customers than individually. Think of a furniture strip or a fashion cluster. Customers deliberately visit an area because they know they can compare there. This explains why clothing stores like to locate next to other clothing stores.
Direct competition: At the same time, proximity to identical providers means you must share the market. The art is to locate in an environment with complementary shops that attract the same audience but do not offer exactly the same products.
Thoroughly research the retail mix of the intended shopping area:
- Which sectors are already represented?
- Is there an anchor tenant (such as a large supermarket or department store) that attracts customers?
- Are there vacant properties and what does that say about the health of the shopping area?
- Is there an active retailers' association or BIZ investing in the area?
Choosing a type of shopping area
The Netherlands features several types of shopping areas, each with its own characteristics and suitability:
A1 locations (prime shopping streets)
The primary shopping streets in major cities: Kalverstraat (Amsterdam), Lijnbaan (Rotterdam), Herestraat (Groningen). Highest footfall (10,000-50,000+ per day), but also the highest rents. Suitable for national chains and strong brands with high margins.
A2 locations (secondary shopping streets)
Streets connecting to A1 locations. Lower footfall but still considerable (5,000-15,000 per day). Rents are 30-50% lower than A1. Attractive for specialist shops and growing brands.
Neighbourhood shopping centres
Small-scale shopping centres in residential areas, often grouped around a supermarket. Average 2,000-8,000 pedestrians per day. Rents are considerably lower. Suitable for daily groceries, services, and local entrepreneurs.
District centres
Medium-sized shopping centres serving a wider catchment area. Combination of daily groceries and fashion/specialist shops. Footfall of 5,000-15,000 per day with a diverse audience.
Outlet centres and furniture boulevards
Destination-driven locations that customers specifically drive to. Lower footfall but a higher conversion rate. Suitable for sectors where customers want to compare and plan their purchase.
Rents by location type
Rents for retail space vary enormously by location type and city. An indicative overview for 2026:
- A1 locations major cities: EUR 500 – 2,500 per m2 per year (Amsterdam Kalverstraat up to EUR 3,000)
- A2 locations major cities: EUR 250 – 750 per m2 per year
- Main shopping streets mid-sized cities: EUR 200 – 500 per m2 per year
- Neighbourhood shopping centres: EUR 100 – 250 per m2 per year
- District centres: EUR 150 – 350 per m2 per year
- Furniture boulevards/outlet centres: EUR 75 – 200 per m2 per year
Bear in mind that retail space often includes a turnover-related rent component, especially in shopping centres. In that case, you pay a base rent plus a percentage of your turnover above a certain threshold.
Legal framework: Article 7:290 Dutch Civil Code
Retail space falls under the protected lease regime of Article 7:290 of the Dutch Civil Code. This provides tenants with considerably more protection than office space (Article 7:230a). The key features:
- Minimum lease term: The first lease period is a minimum of five years, followed by an automatic extension of five years. After ten years, the lease may continue for an indefinite period.
- Limited grounds for termination: The landlord may only terminate on legally defined grounds, such as urgent personal use, poor business management by the tenant, or in the interest of proper use of the premises.
- Rent review: After five years, both tenant and landlord may apply to the court for a rent review if the rent is no longer in line with the market.
- Assignment of lease: When selling your business, you have the right to have a successor take over your lease.
This protected regime benefits tenants, but it also carries obligations. As a tenant, you are required to actually use the space as retail premises in accordance with the agreed purpose. Read more about this in our article on key points in a commercial lease.
Practical tips for choosing a location
Finally, some practical tips to help you make the right location choice:
- Visit the shopping area at multiple times: Go on a weekday morning, a late shopping evening, and a Saturday. This gives you a realistic picture of footfall and atmosphere.
- Talk to existing retailers: They can tell you what it is really like to do business in the area. Ask about turnover trends, collaboration, and any problems.
- Analyse the walking route: Customers often follow a set pattern through a shopping area. Is the intended property on the main route or in a side street that is less visited?
- Check the zoning plan: May the property be used for your intended activity? Zoning plans may contain restrictions on certain sectors.
- Calculate your break-even turnover: Based on total rental costs (base rent + service charges + additional costs), you can calculate the minimum turnover you need to generate. Translate this into the required number of customers per day and test this against the footfall data.
- Consider online-offline synergy: In 2026, a physical store is increasingly an extension of the online channel. A collection point, showroom, or experience centre places different demands on the location than a traditional shop.
The best location is not always the most expensive. It is about the location matching your target audience, concept, and financial capacity.
Choosing the right retail location deserves thorough analysis and a well-considered decision. Take your time, gather data, and do not let yourself be pressured by agents or landlords claiming a property will be gone quickly. Want to know what other costs you can expect? Read our article on hidden costs when renting commercial property. And are you facing a move to a new location? Our step-by-step guide for business relocations helps you keep everything on track.
