Store operation

Author: Yang Dayun, Li Kuan (Co-editors)
Publisher:
Publish Date: 2003-03-01
Features: This book is specifically written for store managers of fashion retail stores. It provides a detailed introduction to store location selection and development, operational management guidelines for store managers, information management for analyzing staff morale, customer management, store service management, and store performance evaluation. The book comprehensively lists practical work methods for stores, making them ready to use and highly effective. It offers excellent support for both new and experienced store managers.
· Gross Floor Area (GFA) – Gross Floor Area refers to the shape and area of the predetermined site. There are two aspects of shape: one refers to the overall design of the building's exterior, and the other refers to the shape of the site itself. The former focuses on the future store, while the latter is the key to the store design. Generally, a more square store layout is better.
· Area – Refers to the usable commercial area. In other words, the effective area after internal measurement. The width of the store is the primary condition. Especially for the usable commercial area on the ground floor, it must meet the basic area requirements of the store plan. Whether it's a ground-floor or second-floor store, or a ground-floor and basement store, each store has different characteristics based on its needs.
· Deposit and Rent – The cost of the predetermined site's land price is directly related to the rental cost. Rent investigation is an essential market research task, involving inquiries about the rental rates for several months and the current rental market conditions nearby. The level of rent and payment terms should be determined. Additionally, information about the landlord, property owner, neighbors, and previous tenants, including their occupations, addresses, creditworthiness, and any inheritance disputes, is also crucial. It is particularly important to investigate whether the landlord is cooperative and whether they are likely to significantly increase rent. If the store is in a former tenant's abandoned lease, it is essential to understand the factors contributing to the former tenant's success or failure and their reasons for moving, as these can serve as lessons for the current store. The use of neighboring stores should also be inquired about.
▲ Selection of Store Location
The selection of a store location must involve on-site observation and comparison after choosing a specific site. Conduct on-site observations for three consecutive days at different times (morning, noon, after work, and after 8 PM). Use observation methods to understand the advantages and disadvantages of the location.
· Regarding the store itself:
a. Rent
b. Renovation costs, including the landlord's restoration conditions
c. Lease term
d. Renewal rent adjustment ratio, past records, and contract agreements
e. Age of the building and maintenance costs (including labor costs, landlord's character, and whether the landlord may change (sell, transfer))
f. Evaluation of the previous tenant as a comparison table
g. Rent cost, renewal rent cost, and estimated total rent cost
· Regarding marketability:
a. Convenience for target customers
b. Higher foot traffic with smaller differences between low and peak hours?
c. The store street's image aligns with the store's business characteristics?
d. Customers in the business district match the target customers?
e. The quality and quantity of the business district are better?
f. Less competitive conditions?
g. Smaller changes in consumer behavior?
h. Higher stability of the business district?
1. Convenient for deliveries (better than other companies' delivery routes)?
▲ Key Points for Lease Negotiations
· Break-even Point: This refers to the estimated rent cost. Since the profit margins and development goals vary depending on the life cycle of the products sold in the store (e.g., introduction, growth, decline), the acceptable rent also differs. Prime locations are usually more expensive, but more expensive locations do not necessarily generate better business. Therefore, achieving the break-even point is a critical condition.
· Lease contracts are best set for 3–5 years: Because of the store's organic growth behavior. Under the premise of sustainable operation, as long as