Location is by far the most important factor in the success of a retail store. It determines the both long term and short term success of the company. When a retail store is located in the wrong location its potential is lost and the final outcome is failure or shut down of the retail store. The best retails stores are located in places where there is a large population with middle or high level incomes. The retail store must be well connected with proper road and transport system. It must also be in such a prime location that is easy to reach and timesaving. Building a retail store in the middle of nowhere is not at all a sensible idea. The retail store must be in the area where there is a lot of foot traffic.