Managing store closures. What you need to know
As retailers continue to navigate the challenges of transformation within the industry it’s inevitable that for some, the decision to close bricks and mortar stores will need to be explored.
Buyer behaviour is redefining the retail experience and for those agile enough to be able to respond, there are significant opportunities to grow and expand. For some, keeping the doors open will become unfeasible with difficult choices to make.
Understanding the productivity of a store portfolio is best practice to help inform strategic site decisions. Whether it’s as part of a growth strategy to focus on profitability or a cost-cutting necessity to reduce spend, decommissioning and closing retails stores is becoming part of new normal and a necessary element of the industry’s transformation.
It’s important to understand the breadth of options available to manage a store portfolio, but when the decision has been made to undertake closures, relationships play a key part in ensure a smooth and cost-effective process.
The landlord is a primary stakeholder and should be managed as such. Where possible, honest and transparent conversations from both parties about expectations, timelines and planned works will help ensure a more straightforward handover.
A detailed liability assessment is key to understanding what the liabilities are in line with any lease or contract that has been signed, which will inform the nature of works needed as part of the store closure process.
Failing to plan is planning to fail
Making the most of your assets
Stripping out a store and returning it to the original shell is a messy business, with the prospect of heavy M&E equipment removal and equipment disposal as well as general and recyclable waste. Having arrangements in place to manage waste disposal is both a health and safety requirement but will also ensure focus remains on the work that still needs to be completed rather than thinking about how much there is to move.
Whether closing down a single store closure or multiple stores across a number of locations, there’s a degree of process driven activity that should ensure a relatively smooth transition. Using the expertise of professionals who understand the nuances of working within the retail industry and how space can and should be transformed as part of your project team is going to deliver the best outcome in the most cost-effective way, allowing brand owners to focus on the next steps.
Share this Post