Retail Insight: Matt Turner gives his view in latest issue of RLI
Media
17/06/2009
In the June 2009 isssue of Retail Leisure International (RLI), Director of Mace Retail gives his view on the main issues affecting the retail property environment in 2009 and what is being done to help retailers in the tough economic climate. In response to what retail clients are focusing on, Matt comments they want to reduce costs, maximise sales whilst still maintaining their core values and delivering great customer service.
So what is the solution? A tiered property strategy in which new build fit-out and refurbishment programmes are assessed on an individual and fit-for-purpose basis. In this scenario, outlets are categorised by revenue-earning capacity, reflecting the differences in customer purchasing power
and hence, income per square foot. The cost and quality of fittings and fixtures are not standard across all properties but rather reflect the potential of customer spend in each outlet. It simply doesn't make sound economic sense to have the same quality of fit-out in a high-end retail area such as London's Bond Street on a high street in an area where the population has a much lower spending capacity.
This strategy allows the whole property portfolio to be rated, ranked and grouped according to the three-tier classification. By designating premium outlets as a priority on any new build or refurbishment programme, followed by standard and value properties, retailers achieve maximum return on their investment. When setting budgets, this strategy enables directors to determine where limited property expenditure should be
directed to achieve maximum return.
This type of approach is, however, only valid where retailers can be assured of project certainty - the knowledge that when a programme manager is contracted, projects will be delivered on budget, on specification and on time. Project delivery predictability must therefore be a prerequisite and the base platform on which a successful property strategy is built.
The article is available to read in full in the June 2009 issue of RLI. To visit the webiste please follow the link below:
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