Learn how to balance new store development with existing store renovation and maintenance in a tight budget. Apply best practices for market assessment, project prioritization, store design, asset leverage, and stakeholder communication.

I agree with this strategy. Another perspective is to use existing stores to aggressively move existing product to position the brand for a re-launch when the renovations are completed. New stores should show as new with fresh assortments and merchandising strategies. This strategy gives the ability to maximize ROI and flow through in the new space.

How do you balance new store development with existing store renovation and maintenance in a tight budget?

As a new store developer, you know how challenging it is to plan, design, and launch new retail locations in a competitive market. But you also have to consider the needs of your existing stores, which may require renovation, maintenance, or repositioning to stay relevant and profitable. How do you balance these two priorities in a tight budget, especially in the wake of the COVID-19 pandemic? In this article, we will share some tips and best practices to help you optimize your new store development strategy while keeping your current portfolio in good shape.

Key takeaways from this article

Evaluate market potential:

Utilize tools to analyze demographics and spending habits. This helps pinpoint lucrative locations, avoiding costly mistakes on unprofitable ventures.### *Leverage existing assets:Use current stores as distribution hubs or testing grounds for new products. This maximizes their value while supporting growth and innovation.

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1 Assess your market potential

Before you invest in new store development, you need to assess the market potential of your target areas. You can use various tools and methods to analyze the demographics, psychographics, spending habits, and preferences of your potential customers. You also need to evaluate the competitive landscape, the availability and cost of real estate, and the legal and regulatory requirements of each market. By doing this, you can identify the most promising opportunities and avoid wasting time and money on unprofitable locations.

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2 Prioritize your new store projects

Once you have a list of potential new store locations, you need to prioritize them based on your strategic goals and budget constraints. You can use a scoring system or a matrix to rank your projects according to criteria such as expected return on investment, market share, brand awareness, customer loyalty, and alignment with your vision and values. You can also factor in the urgency, feasibility, and risk of each project. By prioritizing your new store projects, you can allocate your resources more efficiently and effectively.

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Nailah Ayeshia Nash

Luxury•Director of Retail Shops | Board Member | Principal & Founder - Nash Luxury Group
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One thing that I have found helpful is to spend time in the stores that need to be refreshed. This gives perspective of the customers shopping patterns. Observing these shopping behaviors will show where the investments will be most impactful. This strategy will maximize the investments as “high touch” areas become a priority.

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3 Optimize your new store design

Another way to balance new store development with existing store renovation and maintenance is to optimize your new store design. You can do this by applying value engineering principles, which aim to reduce the cost and complexity of your design without compromising the quality and functionality of your store. You can also use modular, flexible, and sustainable design elements, which allow you to adapt your store to different spaces, formats, and customer needs. By optimizing your new store design, you can save money, time, and materials, and create a more consistent and attractive brand image.

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Michael Park

Visionary Operations Executive | Emergency Response Expert | Driving Excellence in Retail & Healthcare
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a thing I found helpful is to know your fixturing well this helps to make merchandising transitions smoother and faster. Phasing out section by section, during non operating hours is more desirable. As you get your new remodel make sure to have your merchandise staged and ready to go ahead of time. Whether it's sensoring, clipping or anything you can do in advance ahead of time and keep each section organized so it flows quickly. Many make the mistake of waiting and prolong the process, this is a major turn failure and is killing your products turn rate. Last but not least make it Shoppable for 2 people in an aisle to maximize turn rate. Over marching contrary to belief can kill your KPIs.

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4 Leverage your existing store assets

While you focus on your new store development, you should not neglect your existing store assets. You can leverage them to support your growth and profitability goals in several ways. For example, you can use your existing stores as distribution centers or pickup points for online orders, which can increase your sales and customer satisfaction. You can also use your existing stores as testing grounds or showcases for new products, services, or concepts, which can generate feedback and buzz for your brand. By leveraging your existing store assets, you can maximize their value and potential.

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Nailah Ayeshia Nash

Luxury•Director of Retail Shops | Board Member | Principal & Founder - Nash Luxury Group
Report contribution
I agree with this strategy. Another perspective is to use existing stores to aggressively move existing product to position the brand for a re-launch when the renovations are completed. New stores should show as new with fresh assortments and merchandising strategies. This strategy gives the ability to maximize ROI and flow through in the new space.

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5 Plan your existing store renovation and maintenance

Of course, you also need to plan your existing store renovation and maintenance to keep them in optimal condition and performance. You can do this by conducting regular audits and surveys to assess the physical and operational aspects of your stores, such as the layout, fixtures, lighting, signage, inventory, staff, and customer experience. You can also use data and analytics to measure the impact of your renovation and maintenance activities on your key performance indicators, such as sales, traffic, conversion, and loyalty. By planning your existing store renovation and maintenance, you can improve your store quality and efficiency.

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6 Communicate and collaborate with your stakeholders

Finally, you need to communicate and collaborate with your stakeholders to balance new store development with existing store renovation and maintenance. Your stakeholders include your internal teams, such as finance, marketing, operations, and human resources, as well as your external partners, such as landlords, contractors, suppliers, and regulators. You need to keep them informed and engaged throughout the process, and solicit their input and feedback. You also need to align your expectations and goals, and resolve any issues or conflicts that may arise. By communicating and collaborating with your stakeholders, you can ensure a smooth and successful execution of your new store development strategy.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you balance new store development with existing store renovation and maintenance in a tight budget?

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1 Assess your market potential

2 Prioritize your new store projects

3 Optimize your new store design

4 Leverage your existing store assets

5 Plan your existing store renovation and maintenance

6 Communicate and collaborate with your stakeholders

7 Here’s what else to consider

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