Commercial Remodeling Guidelines For Retail Stores

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A successful commercial remodeling project should make the retail location look more attractive and welcoming, while also increasing efficiency and comfort for employees. If you are giving your retail space a facelift, consider the following tips to help you give your location a leg up on the competition.

Find a Reliable Contractor
Remodeling takes away from the time your store is open to customers, so it’s crucial to hire a contractor who meets deadlines. Additionally, look for commercial construction contractors that are licensed, bonded, and insured. Do not be afraid to ask a contractor to meet with you before you make a final hiring decision. If a contractor does not arrive to a preliminary meeting on time, you may have good clue about what working with him will be like.

Make a Great First Impression
First impressions are important, especially for retail stores. Aim for a look that intrigues and welcomes customers. To make your customers feel safe, create a layout that allows a visual scan of the entire store upon entrance. Further enhance the customer experience with shelving units that are not too tall, aisle spaces that are comfortably wide and merchandise that is beautifully arranged in a logical manner.

Use Light to Your Advantage
Lighting can create a certain mood and spotlight products you want to accentuate. Consider using low ambient light with track lights to point customers to featured merchandise. To create a relaxed mood while complementing products, build lights into shelves and custom cabinets.

Paint According to Your Goals
Different colors trigger different emotions. For example, the color orange makes most people feel cheerful. Paint your retail space in a color that will help you achieve your commercial goals.

If you own a bakery, it would be wise to choose the color red, which is known to make individuals feel hungry. Green is a color that can trigger emotions such as growth, health and hope–great for a location that promotes wellness or sells plants. The color blue promotes the feeling of love, tranquility, acceptance and understanding–perfect for a retail store that sells spa products or gifts. Yellow is known to boost a customer’s memory and can help them feel joyful, smart and organized–ideal for a store that sells stationery products or organization solutions. Use colors to produce emotions that complement your product line.

Remodel to Enhance Your Brand
Northwestern University professor of marketing Philip Kotler has written, “In some cases, the place, more specifically the atmosphere of the place, is more influential than the product itself in the purchasing decision.” In this way, retail remodeling can enhance your brand.

Retail space remodeling can be an intimidating process. However, as providers of Portland remodeling services, we here at Sitka Projects can say that retail owners who plan carefully achieve excellent remodeling results. Knowing your target audience and having a firm grasp on your goals for the customer experience are the first steps in making a mediocre retail space explode with life.

Customer Loyalty Program For Retail Marketing

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For you to be stable in your business you must always find ways and means or certain strategies to be on the lead over your competitors. One technique in retail marketing that would be the best way to keep your clients and shoppers coming back to you is the use of a customer loyalty program or others refer to it as a reward program.

The customers profit in this reward program and the many benefits that they will get in exchange for what they have shopped would encourage them to keep shopping in your place.

In reality the customer loyalty program is a program of attracting buyers to keep coming back to your store for the reason that they get certain benefits. This program may differ from one another depending on how the owner would plan and set it up. The most commonly used ones are gift certificates, special discounts on certain items and points equivalent to the items they buy.

In this reward program, the member is given a loyalty card for him to hold every time he goes shopping in your store. The customer must show this card at the counter during the time when he is purchasing the items in order to get the benefits he is entitled to. In other cases if your store is an online store the customers must know and must be given the number they should use by the time they check out instead of using a card.

You can purchase a 365 loyalty card at participating merchants in the network or you may by them online at 365loyalty.com .

Another style of the reward program is the points system. Here, all the members using their loyalty card receive a certain amount of points that depend on the amount of their purchase. Soon, they can collect the points and have it exchanged for certain money off their next purchase. Rewards are given in various items like discounts on some items, a shopping voucher, a chance to buy something on a reduced price or a likable gift item
free.

Retailers dont have to think only of one reward program you can decide on many member incentive type rewards. Store owners must decide which type of reward programs will have the best system that works for their business.

There are a few things to consider when planning for your reward program. Things like nature of the items you are selling and above all the characteristic of your clients. It would always be wise to think and plan for the best strategy to utilize in your program so your business wont be at a loss and you would save it for your top buyers. .

For a more attractive program you can use a combination of various strategies at one time. You may give out a universal member cards to most or majority of your customers and reserve some VIP cards for your top buyers. This strategy is best useful when you business covers a large variety of products also with various price ranges. It is very important for you to remember that the 365loyalty program is intended to give rewards to your buyers and loyal clients as well as improve their happiness and fulfillment in shopping at your store.

Many times customers find it disappointing to see a lot of terms and conditions when using their member card. It would be best to use simple terms and conditions which are comprehensible, and clear. No hidden fees should be included in the terms, they will upset your clients. Once you lose your clients you will find it very hard to bring them
back again.

If your goal in using the reward program is to satisfy your customer with your products and services for a long term, then your loyalty reward program is sure to succeed. But if your intention is solely to make profit instantly then the program is not appropriate for your retail marketing strategy.

Since the 1980s creating a Loyalty Reward Program has proven to be a very good strategy in business to meet your goals, go beyond your customers expectations and encourage long term loyalty and growth..

To find out more about a community loyalty card in your area contact 365loyalty.com or call them at (609)568-6012

Reconditioned Dyson Vacuum Three Questions To Consider Before Purchasing Retail

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So… you’ve decided that a Dyson vacuum is in your future? Congratulations! I personally think you’ve made a wise investment in your home-cleaning arsenal. Arsenal? Gosh, I make a clean home sound kinda like warfare.

I guess after 20+ years of marriage and always having one kind of pet or another, it feels like warfare keeping the house clean at times.

Before heading out to your local retail store to plop down several hundred $1’s on that brand spankin’ new Dyson, consider the alternative; buying a reconditioned Dyson vacuum online. I did 3+ years ago and here’s why I think you should too.

Question 1: Ask yourself “Do I have an extra $200 to $300 to burn or could I think of a better use for that money?”

Purchasing a refurbished Dyson (read below what definition)can save you several hundreds of dollars off retail. Go to your local Sears or Best Buy and I’m guessing for a DC14 Animal, you’re going to pay around $550 to $600 for a new vacuum. And that doesn’t include tax so add another $35 to $40.

Total: $580 – $640.

Now compare that to a Factory-Reconditioned Dyson DC14 Animal that can be purchased online and you’re looking at a price, I’ll bet, that’s in the the $300s range! And most times purchasing online means NO TAX and FREE SHIPPING…. BaddaBing BaddaBoom, you just saved enough to have a heckuva nice romantic getaway for a night maybe two my friend. Read on.

Question 2: Ask yourself “Do I have to have a brand new Dyson?”

Here’s a simply definition of a remanufactured Dyson vacuum – “factory reconditioned to new condition (a few cosmetic blemishes may exist) backed by a factory warranty”.

Bottom line – for all intents and purposes, you’re getting a brand new vacuum that may have a few cosmetic blemishes on it. Mine didn’t and neither did two other friends who bought reconditioned units either. Dyson even puts a full 6 month warranty on all their remanufactured units to give you piece of mind.

Question 3: Ask yourself “Do I take pride in finding the best deal?”

Everytime I look at my Dyson Animal, I get a kick out of how much I saved going the reconditioned route vs. retail. You may be like-minded or you may not. But the fact is, after 3+ years of ownership, I can’t, and neither can anyone else, tell 1 bit of difference between my reconditioned Dyson and a new one.

If you want all the benefits – Dyson vacuums have incredibly positive reviews and are known for their exceptional suction. Among the cool features are a 17-foot telescoping wand, permanent HEPA filters and 150,000 Gs of cyclonic force – while saving a boat load of money, I encourage your to check out a remanufactured Dyson vacuum instead of a brand new one. In a couple days, after delivery, I think you’ll be glad you did.

Cost And Intensity Of Retail Refurbishment

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Among the most common factors why retail establishments and businesses go or postpone their retail refurbishment projects are because of its cost and intensity. This article will further discuss these elements in the following sections below. Aside from that, this will also share some important points in helping a company to decide on these aspects as well as overcome these obstacles.

The Cost of a Retail Refurbishment Work

On the one hand, there could be at least two (2) major factors that affect the overall cost for a retail refurbishment. These are the scope of work as well as the scale of the business. For example, the cost depends whether the work is big or small. If it is just a minor refurbishment for a retail store, then the company would only need to spend a small nominal amount for it.

However, it also depends on the scale of the business. If the business is big, then their propensity or capability to spend for such works would be different from a small company. For instance, for the same scope of the refurbishment, say a replacement of the shelves with exactly the same dimension, the nominal cost of that would be the same. However, if you are going to take its percentage with respect to the sales of a small store, then it account for a bigger pie of their sales or earnings. In other words, it may be a minor cost for a big company, but it may also not be a minor cost for a smaller company. You can go to www.gildacroft.com for more info on this.

The Intensity of a Retail Refurbishment Work

On the other hand, the intensity of any retail refurbishment work matters for any scale or size business. This is because it is about how they are going to implement the works related to it. For instance, among the top considerations that business owners need to ponder on about this is whether they need to close their shop or not while the improvements are in the works. As a matter of fact, this is especially applicable for those major repairs and enhancements. The bigger the project, the longer it might take them to finish it. In this regard, if they are going to close the shop as a requirement for the works to take place, there would be an opportunity cost for the retail store. This amounts to the amount they should have been earning while they are closed for business.

Leasing Retail Space – Terminating The Lease

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Who Pays When Operating Expenses Increase?

Expense escalations are relevant when the landlord is paying a base level of expenses and when the tenant is paying expenses. With a typical gross lease, the landlord pays all expenses and the tenant pays expenses in excess of a base level. (Gross leases are atypical for retail.) The base level is typically the operating expenses for the year the lease is signed. The “expense escalations”, would be expenses in excess of this base level which the tenant is responsible for paying.
Caps on Increases?

Some leases also provide a cap on increases in expenses. To provide more certainty for the tenant’s cost of occupancy, the tenant may request that property tax increases do not exceed 5% in any year. Property tax increases can be enormous in some states. For example, initial property tax assessments in Texas for retail buildings have increased by 20% to 100% for many retail building owners. In many cases, these large initial assessments have been successfully reduced to a level much closer to the prior year’s value.
Cap Example

However, the property tax assessment process can be arbitrary at times. If the property taxes did increase by 20% or 100%, the landlord would be responsible for the increase in excess of 5% for the example given. There are also sometimes expense escalation caps for utilities, insurance, total expenses and other items.
Co-tenancy Termination Clause

A co-tenancy clause for retail defines a tenant’s right to terminate the lease if another tenant ceases operations. For example, consider a grocery anchored neighborhood shopping center. Let’s assume Kroger’s, a nationally known grocery retailer, is the anchor. Bob’s dry cleaner store decides to lease space in the center because it believes the Kroger versus will draw all a large volume of traffic. There’s an agreement to pay rent commensurate with the traffic which should be generated by Kroger. However, five years after the center is built Kroger decides to “go dark”.
Can You Terminate the Lease?

In other words, it ceases operations at this location. A co-tenancy clause would provide Bob an option to terminate his lease. There will typically be a defined period for terminating the lease based upon the co-tenancy clause.
Eminent Domain

Eminent domain is the right of government to take private property. Historically, eminent domain was limited to taking private property for public purposes. However, the US Supreme Court expanded eminent domain to include taking private property for private uses. In most cases, property owners are compensated for “takings” through eminent domain.
Eminent Domain Issues

Issues related to leasing retail space include who retains compensation for a leasehold estate, what happens if eminent domain takes an amount of parking which makes operation of the Senate set retail center impractical and are there any rent abatements during construction related to a partial taking of the retail center.
Leasehold Estate

A leasehold estate is a tenant’s interest in real estate obtained through a lease. A leasehold estate becomes meaningful when contract rent is substantially lower than market rent. Having the right to use retail space for a payment well below market rent has value. In the event of a complete taking up (when the government takes the entire retail center) the lease needs to address proceeds of the tenant’s leasehold estate. Do they belong to the tenant or to the landlord?
Partial Taking

In any “partial taking”, the government only takes a portion of the retail center. This may or may not include any portion of the building. For the sake of discussion, let’s assume a retail center with 10,000 ft. and 50 parking spaces. The 50 parking spaces are in two rows of 25. One row is along the street and one row is along the front of the building. The current amount of parking is just barely adequate. The condemnation will “take” the 25 parking spaces along the street. This leaves the property with only 25 parking spaces, or about half of what is necessary. The lease needs to define the rights and responsibilities of both the tenant and the landlord in event of a partial taking.
Pay Rent During Road Construction?

Consider addressing the payment of rent during road construction related to eminent domain. Most leases are silent on this point. In many cases, the loss of business due to construction is not compensated. The landlord must pay his expenses and mortgage payment during construction. The tenant’s sales often decline precipitously during construction. There is no easy answer to equitably address this issue.

The Market Research and Consulting division of OConnor & Associates provides information necessary to make decision to commercial real estate professionals. Occupancy and Rental Data, ownership and management information are routinely gathered for four major land uses multifamily, office, retail and industrial. This information allows investors to compare competitive properties, facilitate business decisions and track market and submarket performance.