Journal of the International Academy for Case Studies (Print ISSN: 1078-4950; Online ISSN: 1532-5822)

Abstract

The Effect of a Smaller Store on Overall Store Performance

Author(s): Aitken Gage

Majority of brick-and-mortar retailers in Bharat assume that: (a) existing store size is good to their marketing format, (b) inventory show density per area unit is perfect, (c) larger the shop size higher the buyer walk-ins, (d) additional premium the shop location additional premium the perceived mercantile establishment whole positioning in customers mind, (e) larger the shop size higher the shop revenue and most significantly, (f) store revenue reduces in proportion to reduction future size. Such assumptions and wide followed apply have resulted in increasing pressure on store in operation prices for several years. Brick-and-mortar retailers ought to perceive the importance of store rent and its implications on the store profitableness to attain a property store level profit and to attain this they have to rationalize stores size on consistent basis. during this analysis, we've got analyzed the present store size across locations of a pick merchant in reference to overall store profitableness, hand-picked few loss creating stores; particularly those that are delivering losses because of higher rent and bigger store size, reduced these stores size while not compromising the buyer expertise side, evaluated the store performance over an amount of 11 months to grasp the changes in: (a) shopper walk-ins, (b) store revenue, and (c) overall store profitableness.

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