High End Retail

Goal:

Consider move to upscale exclusive retail shopping centre to increase sales and visibility. High end retail and custom design business.

Situation:

Client wanted to move into prestigious upscale shopping center she believed would substantially increase her visibility, retail traffic and high end custom design clients and therefore, increase sales substantially. Shopping center recently changed owners and new tenant mix is moving to exclusive highend shops with fewer local business owners.

Backpocket’s solution:

Kathy worked with client to define long-term goals and to determine if capital expenditure for new lease, insurance and remodeling space will result in necessary revenue to justify substantially higher lease expenses. Kathy reviewed financials on similar businesses within the center to determine if sales were significantly higher due at this premier location. Kathy interviewed local business owners within this industry to research competition and market share. Several business owners were getting out of the industry all together, presenting possible market share gains.

Backpocket’s impact:

Client decided to forego move to maintain current profitability and growth, rather than risk financial losses. Kathy recommended owner gather more evidence about current shop owners within exclusive retail center to determine if they are experiencing higher levels of traffic and sales with new building owners and new tenant mix prior to considering the move again in a year or two.