Optimizing your store network is an ongoing process. Take the right action to bring the locations that are performing below par back to a satisfactory level.

Is there a possibility for growth at the current location? Analyse what is causing the problem and then focus on improving activation, loyalty or conversion.

Is there no possibility for growth at the current location? Then you have to make a decision about the property.

1. Can you negotiate your contract?

Look into whether it is possible to re-negotiate your lease. Has the area around your location considerably changed over the past few years? Underpin your arguments with objective data to strengthen your position in negotiations.

Less passing trade has a huge impact on the profitability of your location. With the right traffic data, you can get a picture of the structural evolution of passing trade.

If your perfect neighbours leave, that usually results in lower synergy and therefore decreased revenue. Thanks to smart data on local activity, you will come to the negotiating table fully prepared.

2. Can you rethink your layout?

Because of the explosive growth in online sales, the role of physical stores is also changing. Study whether you can organize your store space differently. By investing in more storage space, you can better respond to initiatives such as click & collect. This allows you turn an unprofitable location into an essential part of your omnichannel strategy.

3. Can you reduce the size of your location?

Want to save on costs without shutting up shop? Opt to make your current location smaller. That way, you maintain all the advantages of a physical store but reduce your operational costs. This option saves you from losing the halo effect too: you make more online sales in the area around your physical location. By keeping your shop or office, you maintain a street presence, your brand awareness is not diminished and your customers continue to trust buying from you online. 

4. Can you move your location?

A good experience, convenience and micro-accessibility determine the success of your location. Is the quality of your current location good enough? Be proactive in looking for buildings in your area with a higher quality location that come on the market. If you find an opportunity, you can consider whether to move or merge two locations together.

With the RetailSonar platform you can predict the sales in any location with up to 90% accuracy. Certainty is crucial when making such an important property decision.

5. Can you close your store without losing customers?

The final option is to close your unprofitable store. Always make a data-driven business case for a closure. Precisely calculate the added value of each location. How much would you lose in sales and where could you make up for this elsewhere? You can close a store without losing customers. Using targeted retention campaigns, you can maintain your current customers both online and offline.

What real-estate decisions are you making to optimize your store network?