A recent study found that renovating a retail store boosts sales to new customers by 44 percent and increases sales to existing customers by 7 to 10 percent.
A store remodel can also help retailers keep up with competitors whose stores have a fresher, more up-to-date look.
Here are some tips for planning a remodel that will reap returns for your business and minimize the stress on your budget, customers and employees.
- Before starting a remodel, ask the right questions. Analyze your market to determine what your customers want in a store and where you’re falling short. Is a remodel necessary to keep up with your competition? Which aspects of a remodel will show a strong return on investment, and which ones won’t? For example, an upgrade to energy efficient lighting usually pays for itself in energy costs, but a new kiosk that must be staffed by an employee may just add to your labor expenses.
- Figure out what you can spend and start exploring how to access that money. Based on your anticipated return on investment, you should be able to come up with a ballpark figure. If you don’t have the cash on hand, begin to investigate financing.
- Before you finalize plans or budgets, consult a company that has strong project management experience in retail construction and/or rollouts. An experienced retail services company can provide valuable guidance on the full scope of work required to complete your renovations. For example, you may need to reconfigure electrical, heating or cooling systems or you may be required to do additional work to keep the store in compliance with building, energy and accessibility codes. Knowing the full extent of the project will help you develop a realistic budget.
- Plan the timing of the renovation and what you’ll do when construction is underway. During construction, you’ll be unable to use all or part of your store. If your business has a slow season, you might choose to close during the renovation. Or you might temporarily relocate to a pop-up store. If your store is large, you may be able to stay open in your permanent location by renovating one portion of the store at a time.
- Establish a clear timeline and monitor the project closely to ensure that it is completed on time and according to your specifications.
At Powerhouse Retail Services, we have in-depth experience with store remodels and rollouts. And our data management system, Infinity by Powerhouse, gives our clients an unparalleled ability to stay on top of every phase of the project – whether it’s a one store refresh or a nationwide rollout.