Increasing tenant’s sales by improving its product range
Dress Code* retailer approached the shopping center developer to ask for a discount due to sales decrease. The retailer has stores in two shopping centers of this developer.
The developer analyzed the retailer’s sales in both shopping centers where Dress Code had stores. The analysis revealed:
- The product range offered at a store in the shopping center 1 averaged 64% of the product range offered at a store in the shopping center 2.
- An ABC analysis identified the groups of products that generated the most revenue.
- Some popular product items were not represented at the store in the shopping center 2.
After the developer pointed out this problem to the tenant, the tenant expanded its product range in the shopping center 2. As a result, the tenant’s revenue soared 20%, while the income of the shopping center from rental payments rose by €76,000 per year.
*not tenants’ real names