Shopping mall traffic swells at the time of key retail seasons through the course of the year. Christmas, Mother's day, Father's Day, Back to School, and School Holidays are just some of the seasons which drive increased mall traffic.
Smart retailers leverage this additional traffic by opening a temporary second retail outlet in the centre. This is usually called an outpost location.
Mall landlords lease this temporary space at a premium because of the high traffic which passes by.
Managed carefully, an outpost can significantly boost the bottom line performance of a retail business for the following reasons
You can target the peak of a season, gaining maximum sales over the shortest time possible.
You can share labour costs between your main business and the outpost.
Advertising costs are minimal since the outpost is relying on existing traffic.
The rent paid is usually negotiated to be for the space and not based on turnover.
You can also use the outpost to sell products which may be slower moving in your existing fixed location retail store.
Running a successful outpost times careful planning and a commitment to tight management to extract the maximum value for the business. It is not something to do at the last minute or without a budget which accounts for all contingencies.
To make the most of an outpost opportunity, consider these tips. They have been developed based on years of outpost experience in several shopping malls
Location is king. Choose the best location possible. Yes, this has a premium price. This should be returned in sales. Taking a lesser location could cost in terms of sales. So, if you cannot get the location you prefer, consider not proceeding with an outpost.
Negotiate the best rent deal. This is challenging because there is usually considerable demand on space. You can negotiate a better deal if you commit to multiple outposts over a year. Deliver the landlord volume and expect a better deal in return.
Plan ahead. A good outpost takes at least three months of planning. Management attention well in advance pays off with greater success.
Have a price strategy. Think carefully about your plan regarding price. It may not be enough that you are in a great location with good product. To really attract attention and drive sales you will most likely need to offer a deal. This is where your negotiation with your suppliers is crucial.
Engage with suppliers (part 1). Let your key suppliers know that you are running an outpost. Negotiate better trading terms including permission to return unsold stock. Good suppliers will want to be part of your outpost and they will offer better terms for the duration of the outpost. The benefit for them is that they are getting their brand in front of more people.
Engage with suppliers (part 2). Ask suppliers for manpower assistance to setup the outpost. Good suppliers will usually agree as it ensures that their products are presented in the best possible light.
Tell a story. Have professional signs made to promote the outpost. Use fixturing which enables the appropriate promotion and display of the products you sell.
Cross promote. Promote your fixed location store. Leverage new customers you see at the outpost to attract them to your regular business after the sale closes.
Secure the outpost. Ensure that once you close the outpost for the day you secure all stock so that theft is impossible.
Smart retailers use outposts to boost revenue and profit not only for the day to day benefit of the business but to also build the business with a view to selling. This is vital given that retail businesses sell based on a multiple of profit.
A good outpost can be remembered by customers long after it is closed. The flow on business for your fixed location business can be considerable.
Author Resource:-
submit article has been writing articles online for nearly 2 years now. Not only does this author specialize in Retail Business
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