A national retailer that had been in business for nineteen years asked Think Assets to review the companies store portfolio. The firm was growing quickly and needed to understand which stores required investment, which it should divest of and where and when they should establish new store locations. Our study identified a number of concerns over the existing selection and store development process.
As such, Think Assets worked to provide recommendations surrounding the viability of the existing sites and importantly the store design. It was decided that the primary issue was the lack of a measurement system to assess the effectiveness of the stores beyond headline sales or profit margin by location. Once we worked with the management team, we were able to optimise the store format prior to further investment. Additionally, we were able to help the finance team understand the lifecycle costs for the facilities and the best investment split between physical premises and online capabilities.
Furthermore, our review of the historic property costs resulted in additional capital allowances being due to the company providing a significant tax repayment.