Managing Store Portfolio Change
Supporting Retailers in re-sizing their UK store estates
With the impact of online retailing and the focus on creating a more impactive experience in stores rather than simply providing multiple outlets – the high street is undergoing rapid transformation and the shape and size of store estates is changing.
The store closure and decommissioning process can often be reactive and inefficient, resulting in multiple contractor engagements with insufficient focus on control, time and costs. Equally, valuable business assets are often forgotten rather than appraised and retained for future benefit, with estate consolidation likely to require moves as well as closures.
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Taking roles as both commercial consultant and main contractor, we negotiate the most financially beneficial solution for our client, to facilitate store portfolio changes and ensure a smooth, professional and timely transition.
We can help take the pain out of managing your store portfolio changes.
HMV – Rebalancing and repurposing for the new consumer
For decades, HMV has been one of the most iconic names on the high street. With 223* stores nationwide, HMV had long been the ‘go to’ retailer on the high street for music, film and electronic products. However, the initial rise of internet downloads and streaming services, as well as cut-price competition from Amazon and the supermarkets meant that in January of 2013 administrators were appointed to assess its prospects and any potential buyers.
In the Spring of 2013, liaising with both the administrators, HMV and the Landlords, Sigma managed the strip out and dilapidation works across their store estate nationwide. Pending the assessment of their in-store fixtures, we transported the equipment to our central equipment consolidation centre, where they were carefully assessed for reuse back within their store estate or responsible disposal.
With 37% of stores marked for permanent closures, the remaining 63% of the stores were repurposed in line with the resurgence of vinyl records.
Sigma’s retail expertise helped both survey and remodel the stores that were to continue trading, reusing previously reassessed store equipment where possible. With in-house transportation, equipment consolidation and recycle, Mechanical & Electrical and Installation teams all working together as part of the end-to-end service solution offering.
Acting as Main Contractor for this delicate store estate re-balance, Sigma were able to ensure transparency, clear lines of communication and a focus on control, time and costs to suit all parties involved.*accurate as of 2013
The Key Stakeholders:
The Administrator, The Landlord & The Retailer
There are many stakeholders involved when it comes to deciding whether to repurpose, rebalance or indeed close physical retail stores. Changing consumer shopping habits, new investment programmes and macro-economic and political factors all play a part in the ever-changing retail landscape.
But who are the stakeholders involved in this decision on what to they need to know?