If you’re just starting out as a retailer, you’ve probably got a lot more to worry about right now than thinking about stores two through 100. However, when the time comes, a little planning can save you big dollars on your capital investments per location. Here are a few of the areas to consider:
Design fees. most retailers start out by hiring an architect or branding agency to develop their initial store. And this is a great and important first step: your customer experience defines much of how the public perceives you as an organization. However, those fees often don’t make sense in the follow-up locations, and are often overly-custom to the specific site of your first store.
Building materials. It probably doesn’t make sense to try and negotiate like Home Depot for steel studs and electric wiring, but for specialty finishes, you can often achieve a better price if you negotiate with the reseller or manufacturer for a larger upfront purchase.
Proprietary store fixtures. Offshore, domestic, hybrid or build-to-suit? There’s no easy answer to this one, as it certainly depends on your level of customization and site adaptability… but we’ve seen savings of 70%+ by doing a bulk buy of store fixtures when compared to a one-store millwork package.
Signage. Often the first way your bricks-and-mortar customers will identify your location, signage is a key aspect of every retail location. But, much of the cost of signage is in the “setup” of the components of those signs—and if you’re buying in bulk, you can save considerable dollars by reducing the setup cost per item.
Of course, just in time delivery of these items is a critical consideration – so that you don’t wind up paying more for storage than the savings you’ve just achieved—but we at Space Craft can help you make the right decisions for your particular needs and goals. We’ve now opened over 300 retail locations and are always happy to help you grow your store portfolio.
- Don Clark, managing principal, Space Craft Inc.