As a retailer, you are constantly moving with changing trends. Whether you update your retail stock weekly or monthly, you know that keeping your finger on the pulse of what your customers want is vitally important. This also goes for your shopfronts.
Sometimes in retail businesses, change moves quicker than you might be ready for. And as your business changes, you may find yourself in need of a different space to what you have now. So, how do you figure out what you need and when you need to change it?
Upsize
If your retail space is starting life as a pop-up shop, you may have signed a temporary or very short-term lease. Spend the small window of time in your pop-up store to test the market for your products. Take note as to what is selling, what isn’t and ensure that you keep a record of all this data. In time you will figure out what your more established location should stock and sell to be successful.
Downsize
Retail stores are often based on high streets, malls and shopping centres. Some locations may experience lighter foot traffic than they are used to due to increased competition, seasonal fluctuations and a change in economic pressures. This may be the time when you need to consider downsizing your floor space to save costs but retain sales.
Expand
Windows of opportunities arise all the time. Sometimes your neighbours’ misfortune may be your own good luck. You may be able to purchase or rent the space adjacent to your own if or when it becomes available. If the budget permits, expanding your floor size may be just what you need to increase your floor stock and in turn your sales.
Duplicate
Some businesses may get a chance to expand their operations to include new locations. Before you go ahead and sign a 10-year lease, make sure you have done your research. Even something as simple as a competitor analysis would help you discover whether a new location is a potential opportunity for your own store.
Budget
As with all business decisions, a budget should be your main consideration. When you have the cash flow, stock, or sales then this should always determine your future purchase behaviour. Always consult with your accountant or financial partners before making any financial decisions for your business.
Based on these types of movements that a retail business can make, you would do well to always be exploring these opportunities when they arise to keep your shop on top.