Shopper Marketing and Customer Experience Management

we believe it takes an inspiring story to make people buy

cost per square foot of stores

It is difficult to imagine business without the retailer, yet how often do we provide for or even discuss retailer empowerment in our Marketing Mix or our Annual Budgets.

Building a store for the retailer to sell from may not be enough.

It is the retailers who reach consumers at key moments of truth, influencing their purchasing decision making.

Even if we were to just discuss the costs of building a store, we provide for ‘store design and execution’ as a blanket cost to be apportioned amongst the number of stores. Our Capex costs talks of cost per square foot of building a store. However is that how brands apportion moneys to build stores?

Flagship stores demand high investments and rightly so. Hence cost per square foot of  building a flagship store is way higher than the rest.

After which one must consider the fact that 80% of a brand’s revenue is generated from 20% of the rest of the stores. In which case shouldn’t a large portion of the remaining moneys (after building the flagship store) be spent on those key stores that drive the maximum business for brands?

The key retailers that drive 80% of your business deserve additional support from brands not only from the Marketing and VM budgets. They deserve a chunk of money spent on building stores too.

Capex costs can remain an average costs for the benefit of books of accounts, right?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 946 other followers

Follow me on Twitter

%d bloggers like this: