How do I check a retail store’s foot traffic before I buy it?

Start with whatever data exists. Some stores have a door counter, and almost all have a point-of-sale system that records each transaction by hour. Ask for those reports and see whether the busy periods match what the seller describes. Then count visitors yourself, from outside if you can, across weekdays, weekends, mornings and evenings, and on a rainy day as well as a clear one.

Next, look at the surroundings. Which neighbours bring people past the door? If an anchor tenant, a transit stop or a parking arrangement drives the flow, ask what would happen if it changed. The lease matters here: the location is a big part of what you are buying, so confirm how long you can stay and on what terms.

Finally, compare visits with purchases. A store that gets many browsers and few buyers has a different problem from one with few visitors and many loyal customers. Talk to nearby shop owners, and ask the seller what changed over recent seasons. Keep your notes dated, so you can later compare what you saw with what the seller claimed when you sit down to negotiate with the seller.

Key takeaways

• Ask for door-counter and hourly transaction reports.
• Count visitors yourself across different days, hours and weather.
• Check what neighbours or transit actually bring people to the door.
• Compare visitors with purchases to see where sales are lost.