What does a random restaurant in a random town shutting its doors have to do with a floor covering retailer? Absolutely nothing. But that doesn’t mean there aren’t similarities between an eating establishment and a flooring store, and if we think about things for a second, we may learn something.
Let’s begin with story time, boys and girls. Once upon a time, in the heart of an upscale town on Long Island, there sat a property that should, by all accounts, have been prime real estate for a successful restaurant. The site boasts a sizable 3,800 square feet of commercial space, ample parking for patrons and staff and an attractive layout featuring dining rooms, a bar lounge and reception area. Yet, despite these attributes, the location has proven to be a challenging venture for several restaurants, the latest being Lisbon Grill and Cozumel. After each opened to hopeful beginnings, both restaurants closed, leaving the local community wondering why a restaurant can’t succeed here.
Lisbon Grill was, for a time, a standout dining option. The restaurant’s commitment to authentic Portuguese cuisine drew patrons looking for something different from the typical American, Italian or Asian fare in the area. Its warm, inviting atmosphere made it popular among locals. But despite its popularity, Lisbon Grill shocked its patrons by closing.
Almost as quickly as Lisbon Grill departed, Cozumel moved in, bringing a completely different dining concept to the community. The Mexican-inspired cuisine was poised to attract a diverse customer base. Cozumel was designed to attract the young families and professionals. However, Cozumel’s journey was even shorter than that of its predecessor.
Lisbon Grill and Cozumel were not the first restaurants to try and fail at this location. The site has a history of high turnover, with multiple concepts attempting to make a name there only to ultimately fall short.
Now, boys and girls, story time is over and school is in. Some of you may struggle with certain locations, especially if you have multiple stores. Despite doing everything right, some stores perform more poorly than others. You can’t figure out why. You’ve checked the area’s demographics and there’s no problem there. The location is visible enough. You have ample parking. There’s isn’t a plethora of competition, aside from the typical big box. Maybe you eventually shut down the store or you tinker with things trying to make it work. But what are the underlying reasons why the store is not living up to expectations, especially if it once did?
1. Visibility and foot traffic.
While your store may be located on a busy thorough fare, it may not be as visible as it appears on paper. Stores rely heavily on visibility and foot traffic to attract customers. If a potential customer can’t easily see the establishment while driving by, it significantly impacts the store’s ability to draw in new customers. Thus, to attract customers your store must become a destination. In other words, people are walking in on purpose. That makes your advertising all the more important.
2. Parking and accessibility.
Parking convenience doesn’t necessarily translate to accessibility. If the layout of the parking lot or access points from the road create difficulties for customers, it can lead to frustration and deter them from visiting. Also, if the street has fast-moving traffic and/or limited turning options, it may complicate access to the store, making it less appealing to potential customers.
3. High operating costs.
A friend of mine operates multiple flooring stores. Some do well; some do not. Among those not performing is a store whose rent is more than 30% of sales. That’s not sustainable. And we haven’t even talked about utilities and staff. These costs can be prohibitive, especially if customer volume/sales do not meet expectations. Without a steady stream of new and returning customers, flooring stores may struggle to break even.
4. Local competition.
You will have a Home Depot, Lowe’s, Floor & Décor, buying group or another independent retailer in somewhat close proximity to your store. In other words, people have options. For your store to stand out, it needs to offer something unique that isn’t available elsewhere. That’s the advantage of going to Surfaces and finding new suppliers. Or diversifying into new categories like countertops or cabinets, wall coverings or even paint. Otherwise, your store can lose its appeal.
So, if you can identify with any of the above, what can you do? A few ideas may be catering to a particular market through advertising. Another thing you can do is become more involved in the community. Just because you sell flooring doesn’t mean you can’t hold special events that could build stronger ties with the locals like cooking classes, tasting events or even live entertainment.
The story of that restaurant I mentioned serves as a reminder that certain locations—regardless of their attributes—face unique challenges that require thoughtful strategies and a deep understanding of the local market.
The post Why under-performing stores may struggle appeared first on Floor Covering News.