Retail owners do not have a choice whether they want to renovate or not. Existing shops have an average life span of approximately 4-5 years before they have to renovate, either by the rules of centre management, or to maintain public interest. However this or opening a new retail outlet, can be quite a daunting task, particularly in tough economic times, as many store owners will attest.
Retailers can save themselves a significant amount of stress and money if they do thorough planning before opening up a new store, revamping or moving the existing one.
Unrealistic expectations
Consider this worst case scenario: Shop owner X wants to move his existing shop to bigger premises in a shopping mall. There is vacant space available and he applies to centre management for additional space in January. He is not doing anything while waiting for his application to be approved. Towards the end of March, they approve his application, stating that his rent for the new store starts at the end of May.
This gives him two months to find a designer to design the new layout (this process on its own can take a month or more), obtain centre management's approval on the new plans (which can also be a lengthy process), get all involved contractors to quote on the project, and then get them to hand the store back to him towards 26 May. This will give him four days for final preparation and merchandising, just in time to open for trade when his rent period starts on 1 June.
This unrealistic expectation is a general occurrence. Instead of getting a designer in when the application went to the centre management, he waited until the day the application was approved, which was too late. It will cost him between one and three month's rental while getting his plans approved and installing his new venture.
Major considerations
The following aspects need serious consideration before renovating or moving a store, as these are usually the major stumbling blocks in the way of a successful project if not planned correctly:
- Budget: Two golden rules are - do not take a project on without a budget and secondly, cash-flow is of utmost importance. Make sure there is enough money to pay for all renovations and installations. Determine what deposits need to be paid, progress payments and how much money will be needed to finalise the project. Not paying on agreed times can cause certain items to be delivered late, resulting in unnecessary tension.
- Time: Determine a realistic time frame. If a big project gets squeezed into a short period of time, you are guaranteed a disaster. There will be constant defects and contractors will keep on coming back to fix these. Make sure an installation schedule is drawn up and that all contractors stick to the dates set out on the schedule.
- Project Management: Retailers barely have enough time to manage a project themselves. The selection of a project manager is a key appointment which can influence the success or failure of the project. It is the project manager who integrates and co-ordinates all the contributions, and guides them to complete the project successfully.
- Shopfitting and other contractors: Ensure the shopfitter and all contractors have a good reputation who can deliver on time. There are shopfitting companies who do project management on their client's behalf, appointing and managing all contractors, procurement and designers, creating a single point of responsibility and it is this single point of responsibility that can make life easier for store owners
- Design: Find a reputable designer who you feel confident will guide you to the style that will enhance the brand and optimise every inch of space available. Ensure that the design covers every area in the store. Extras can delay the project and therefore the opening date. Contractors can also charge more days as originally quoted.
Retailers have a lot to think about during a renovation or opening up a new store and it will take a lot of stress from their shoulders if everything is in place before the project starts.
