Department Store
Net saving of $350,000 over the first 3 years.

A department store owner was using Winning@Retail™ but was then faced with the opening of a new mall a few miles away. The owner was putting plans together and doing analysis but was stymied by the options and potential negative effect on the business. Prior to Winning@Business™ the accepted estimate was a 25% drop in revenue once the mall opened in nine months. The owner opted to start Winning@Business™ and the steering team was formed and trained.

After five months the owner had negotiated a space in the mall and had hired a consultant to get the best deal possible. We suggested turning the final decision over the steering team for analysis. In two hours of using the problem solving process from Winning@Business™ the team came back with a recommendation. They called for only going into the mall if they could get a better spot by the anchor instead of in a back dead end. They also called for a significant drop in the rent, an out clause and a drop in CAM. They said if the store could not get these concessions there were other options that made more sense. The consultant took these to the mall developer and all were accepted except the CAM reduction. Net saving was $350,000 over the first three years to the out clause would occur. In addition, the team developed a Mall Defense team at the store. One promotion was so successful that a guard was placed outside to only let shoppers into the store when an equal number left. The store was packed. The bottom line was that the 25% decline in business when the mall opened was mitigated to only a 10% initial drop.