When to Expand or Downsize Your Retail Store? Ask BRL Contracting for Expert Shop Fitout Advice

04 September 2019

While the norm in the past has been for retail stores to expand to keep ahead of the competition, some are finding the opposite to be true for them today. This latter group is downsizing the size of their stores to decrease their overhead costs and to increase their profits. If you are not sure which direction that you need to take with your retail business, consult with our company of BRL Contracting. Our business is shop fitouts, and our experts can guide you in the right direction for your specific situation. All that we can share with you in the following advice are general facts.

Reasons to Expand a Retail Store

If you want to analyse your situation on your own before contacting us, the following are reasons that an expansion is necessary for a retail shop to maintain or increase its profitability:

• The need for additional space to display merchandise
• Require wider aisles to provide customers with a comfortable, non-cramped shopping experience
• The store’s profits are high enough to merit expanding, which may mean moving to a larger location or opening a second location

Why to Downsize a Retail Business

In place of expanding, you may be wondering if your retail store needs to downsize its operations. To help you with this analysis, we provide the following reasons to take this action:

• The rent increase exceeds the operating budget limit
• The retailer realises that he or she has an excessive amount of wasted space
• There has been a reduction in the amount of in-stock merchandise that is necessary to serve present customer base
• A need to reduce overhead costs to maximise profits
• Customer base in the area is a low-income one now instead of a high-income one, so sales have decreased as a result

Maximising Your Present Space Might be Your Answer

In your specific situation, you may need to only maximise the use of your current location rather than expanding or downsizing your business. A redesign of your layout, display cases, lighting and décor will address this successfully if it is the case with your retail store. Many retailers turn to this first before expanding or downsizing when the budget allows.

Upon request, we will meet with you to discuss your specific retail situation. After analysing your present circumstances, we will recommend the appropriate course of action for you to take. Only you can make the final decision as to what you should do to keep your business prosperous. Whatever you decide, we will create the perfect shop fitout for you.


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