Inside Retail Weekly

2093 Inside Retail Weekly

Issue link:

Contents of this Issue


Page 27 of 27

HERE ARE THE FACTS Every single multi-store retailer will have underperforming or loss making stores. The cost associated is enormous both in time and money. Get out of them now, and grow your business to its potential. This is only one of our retailer's stories. The Problem: A national fashion retailer with 43 stores has a 23% occupancy cost across the board. The Solution: Immediate closure of 16 stores, some at lease expiry, however most at midterm lease. The Result: The owner was able to fund the growth strategy and today has in excess of 80 stores, with an average occupancy cost of 18%. Every single retailer has the opportunity to improve their position. Previous part-owner of Michel's Patisserie Franchise Group and now Director of BDC, Jon Sully, is only too aware of the massive impact of loss making stores. "Prior to our sale we had roughly 360 stores, and of those, around 16 were company stores with a combined loss of approximately $20,000/week. It was expensive both in cash and time. If we had this option to close stores, the end financial gain would have been enormous". HONESTLY LOOK AT YOUR BUSINESS AND THINK?, "CAN WE DO THIS BETTER?" OR LET US SEE IF YOU CAN! For more information on how BDC can assist in exiting these underperforming stores and develop a targeted growth strategy to improve your bottom line, contact Vaughn McGuinness on 0423 580 907 or David Phillips on 0423 574 714.

Articles in this issue

Links on this page

Archives of this issue

view archives of Inside Retail Weekly - 2093 Inside Retail Weekly