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GO NEWS
Vows - The Bridal and Wedding Business Journal: Make a Good Business “Move”
Follow these relocation guidelines for a smooth transition
Author: Allison Deer
Date of Publication: July/August 2004
Page no. 96
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“Location, location, location”- This has long been the mantra for successful retail operations. Changing store venues as the business grows and evolves is not unusual in the bridal industry. And relocation experts say more so than in past years, it’s vital to put your business in the right place to attract the right shopper.
“Bridal retailers need to be aware that they are not just competing with other bridal stores,” say Stephan Roulac, a business strategist, location expert, and CEO of Roulac Global Places in San Rafael, California. “Because customers are much more discriminating about where they shop, bridal stores are competing with every other shopping experience the customer has had and come to expect. If anything, location is more important than ever.”
“When a bride is shopping for a wedding gown, the place where the bride is going to buy that dress should have the same sense of anticipation and excitement she has,” Roulac says. If you’re putting great effort into décor and ambiance within your store, you need to ask if your store’s location takes away from that experience. If it does, it might be time to make a move.
Number Crunchin’ Fun: The Relocation Reality
There are many reasons to relocate a store, but typically the search for a new site is prompted by the rapid growth by the rapid growth of a business requiring more space; skyrocketing rent; changing in demographics near the store location; shifts in shopping patterns; or a desire to serve a different market niche.
Relocation in retail can be complicated, expensive and stressful, and storeowners may be surprised by the planning involved. Experts in the field advise attacking the project as you would when starting a new business, doing your homework to prevent costly mistakes.
To start, create a real-estate strategy and relocation plan that encompasses every step in the process. You’ll want to examine the space you need, the customer you want to attract, and how you’ll outfit and staff the store. Then there’s the physical process of moving as well as the need to market to new and former customers, Roulac says. Arm yourself with as much information as possible, and giver yourself reasonable time to find a new site and complete the move.
Before deciding to move, it’s crucial that you first assess a variety of financial consideration. Just like any business venture, you’ll want to determine start-up coast, capital outlay, capital reserve, estimated sales growth, potential revenue loss during transition, estimated moving expenses, renovation/contractor costs, payroll costs and the cost of overhead vs. projected increased revenue.
After gathering that data, you’ll need to compare that to the profit potential of the area in which you want to move with where you are now. Local agencies, from county and city planner to chambers of commerce and traffic bureaus, can provide demographic data such as population growth, per capita income, and number of area homeowners vs. renters, which provide clues to customer spending habits. Commercial brokers and the chambers can discuss real-estate costs, retail vacancy rates, shopping patterns, zoning and other critical issues.
You can narrow your search by determining your space requirements (allowing some room for growth), as well as other specifics such as proximity to major roadways, visibility and parking accessibility before a customer might really start looking. Consider not only the possible property’s space but also the general neighborhood and other tenants. Finally, sketch out the basics of your “dream store” to take along and superimpose over pictures of potential new locations; having a blueprint of how you’d like the new store to look only makes things easier.
Finish your homework by driving the major routes to and from a proposed location at different times. This will give you a feeling for the traffic flow throughout the area, Roulac says. Carefully note traffic patterns during your hours of operation.
Supervision Strategies: Should You Hire Help?
Businesses are increasingly hiring experts to facilitate business relocation, says Maureen Gainer, a Chicago-based professional organizer. Businesses can “self move,” she says, but it can be a case of being penny-wise and pound-foolish. “As a small business, it can be tempting to do it all yourself and cut corners to save money,” she says. However, “you can underestimate the loss of revenue if you don’t plan ahead and things don’t go smoothly.”
For example, if you shut down the telephones, fax and computers, your business can sustain serious revenue lose. But you can maintain communication during the move by assigning a contact person a cell phone and special number to handle customer’s calls. If you’re willing to hire someone to help with the relocation, that person can supervise the entire process, Gainer says. Remember to figure that cost into your earlier financial homework and consider its feasibility. “If you don’t have the budget for them to run with the entire project, have a professional come in, tell you everything you need to do, and write up your own plan.”
If you do move the store yourself, appoint a “relocation captain” to oversee the myriad demanding details. Ideas include your business partner or spouse, or a manager, assistant manager or very organized employee. On the moving day itself, this may mean hiring additional staff (try a temp agency) to take up the slack and/or assist with relocation preparations and execution. Either way involving staff members and communicating with them in the process can be your smartest “move.” The more they know about the process, the less stress and confusion when the move happens.
Finally, pick up your pen and paper and make a detailed checklist of moving tasks, advises the Small Business Administration guide, “Take The Misery Out Of Moving” (U.S. Small Business Administration, 1996). Record everything that must be done, even if you believe you’ll remember every detail. “Have backups to backups,” advise the University of Georgia’s Small Business Development Center. And make a contingency plan in case anything goes wrong – because something always does.
Smart Marketing Makes the Process Smoother
Bridal retailers who have made single or multiple moves agree that retailers should think long and hard before moving a store. And if you do, they say, marketing the move to current and prospective customers is critical to sustaining your bottom line.
Retailer Lori Allen has moved Bridals by Lori several times since opening in 1980, settling in her current space three years ago. Key for Allen was staying in the same area of Sandy Springs, Ga., and affluent suburb of Atlanta. “Brides do travel, but we all depend on the district around us for continual support.” If a store is forced to move to a different section of town, or a different town altogether; Allen advises communicating that in television and magazine ads, on bridal Web sites and through e-mails.
Allen’ s multi-pronged marketing campaign for the Bridals by Lori moves included posting signs in the former store 90 days in advance, sending mailers out before and after the move, and placing bridal magazine and announcing the current location. “We also called our brides and posting signs on the new building that this was our future home,” Allen says.
Patrick Kelly of Moliere Bridal in Oklahoma City says he “tried to make a splash” via television and radio advertising when his store moved to a larger building a few years ago. He then did a complete makeover in the same space from a warehouse feel to one that was spacious and elegant. Ads focused on calling “beautiful brides” to see the redecorated store described as bigger and better. “We found that if brides knew you were there, they would come. If there’s a place to shop for wedding gowns, they’ll find it.”
Another retailer who endured store relocation says, “Be prepared for a loss of revenue,” Deborah Armbruster, the owner of Deborah’s Bridal in Upland, California had to operate out of temporary space at her new site for nine months while the new store was being constructed.
“Sales dropped dramatically, even though we put huge banners up that said, ‘We Are Open.’ Our existing customers found us, but capturing brand new business to carry you through the next year was difficult.” Staying in the same area helps, she adds, because it shows a commitment to the community from whom you’re likely to receive support, such as the chamber of commerce. To further sustain revenue throughout relocation, keep your advertising steady throughout the process.
But Armbruster offers one warning: Always make sure there’s a clause in your contract with contractors on construction or renovation carrying a penalty for not completing the work on time. She learned the hard way that while you might hope for the best, you should expect projects to take longer and possibly cost more then the original quote.
Keep in mind, if you conduct thorough research before you chose a location, you may be able to avoid a move and find a different way to separate yourself from the competition. Accomplishing this means thinking “outside the box” and developing something unique.
“I learned that a bride will drive to find her dream dress,” says retailer Sherry Dorman. Her shop, The Bridal Portfolio in McKinney, Texas, has expanded to a second floor but hasn’t moved from its original location. It also acquired a nearby shop to house alteration and a lingerie storefront. Dorman has chosen to move because her location in what she calls “Small Town USA” (45 minutes north of Dallas) continues to draw brides from throughout the region.
However, if you still feel moving is your best option, organization expert Gainer urges bridal retailers to be proactive in reassuring current and potential customers that your decision is a positive one. ‘How you phrase the announcements and signage about the move is very important. You want to present the message that your business will be bigger and provide even more resources.” Plan perks for existing customers before, during and after the move to alleviate bridal fears of abandonment.
So do you think a move is in your future? If the answer is “Yes,” map out plans carefully, collect as much information as possible, and involve outside professionals if you can, in addition to your own staff. A new store can certainly revitalize a business, or continue its growth and expansion. But don’t hurry relocation….take the time to find the right place, and create the right space. Soon enough, you’ll attract the right shopper.
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Get Organized with Martha - Resources related to organizing from Martha Stewart Living.
Simple Living - Easy ways to streamline your life.
IVillage - Message boards on organizing and where you can get advice and support from other women.
Ikea USA - Offers a wide range of home furnishings with good design and function at prices so low many people will be able to afford them. Located in Schaumburg, Illinois and other locations around the globe.
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