The key to getting more for your money is all in the details. Selling a product in a space that does not show its full potential can be unappealing to customers. If your location is looking dated or starting feel less than ideal, it’s probably time to consider a remodel.
CSP Daily News reports the “U.S. convenience-store industry cumulatively invested more than $6 billion in upgrading stores in communities across the country in 2015.” That’s a significant amount of investing spending. If your location hasn’t gotten a refresh in a while, you might be losing sales due to customers switching to a convenience store that has been updated more recently than your own.
CSP also notes the average renovation clocked in at $409,582 in 2015, which is itself a significant amount of investment, but if you’ve had declining sales, the look of your store might be contributing to that, making such an investment worthwhile. According to NACS, the average length of time between remodels, per store, is only 10 years. Things can start to look dated pretty quickly if you don’t keep on top of them, even if it’s just a fresh coat of pain
To Remodel or Not
Interested in making the leap towards a remodel, but unsure of where to start?
Review store data to determine where your customers are spending their money–and then spend your money there. According to the NACS State of the Industry Report of 2015 Data, in-store sales percentages in 2015 broke down as: “35.9% Tobacco, 20.8% Foodservice, 15.1% Packaged beverages, 10.7% ‘center of the store’ and 7.2% Beer.”
Next, create a plan and a budget. Keep in mind that a remodel does not only include the exterior or interior building structure, but includes such things as lighting, merchandisers, signage, cabinetry, menu boards, even the shelves and racks that your merchandise sits on–bent or rusty shelves don’t invite consumer confidence.
If a full remodel too much to undertake in your current situation, consider smaller scale changes that can increase your convenience store presentation in the meantime. From updating lighting to cleaner restrooms (read Why Restrooms Matter), every little detail can make or break a customer coming back.
Some of the winners of CSNew’s 2016 “Best-Designed C-Store Chains” can help give you inspiration towards the types of changes you can (and possibly should) undertake, even if they start as small steps to a larger goal.
Have you remodeled your convenience store recently? Let us know about your successes, and what you learned, in the comments below.