Managing a store relocation project.docx

Managing a store relocation project.docx - Managing a store...

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Managing a store relocation project A Marks and Spencer case study Introduction This case study describes the relocation in 1994 of the Marks & Spencer store in Kendal. The situation presented is a relatively unusual example of store development for the company – not just because it involves a relocation, but because it involves the acquisition and refitting of an existing supermarket. Marks & Spencer is committed to offering its customers high quality products and an efficient service in attractive and comfortable surroundings - this requires an on-going store development programme involving expansion and modernisation. Store development projects not only include the building of new stores on greenfield sites, but also modernising and extending the footage of existing stores, and relocating others to more appropriate sites. Relocations are rare, however, as the majority of Marks & Spencer stores are already in prime retail locations. Getting the planning and co-ordination right Relocation projects are driven by the desire to improve Marks & Spencer’s profitability, by enhancing either the convenience of a store’s location or the store environment, to better satisfy customer needs. When relocating, a considerable amount of time, resources, research, planning and management effort will be invested. Many individuals and departments within the business will be involved and a number of external organisations will contribute - all working to achieve the company’s objectives. The date is January 10th 1994. Marks & Spencer is six- months into the schedule for a store relocation project in Kendal, Cumbria. In the text below we hear from three key managers closely involved in the scheme. Paul Mellor is the Kendal Store Manager, Mike Peterson is Technical Co-Ordinator for Construction Services in the Store Development Group and Katy Bull is Store Planner for the project. Their comments provide an insight into the reasons for the relocation, how the project is progressing and the tasks still to be carried out prior to the new store opening. Why relocate? Paul explains some of the background to the project. “Kendal is a busy market town in Cumbria on the south-eastern edge of the Lake District National Park, which is a popular tourist area. The town is close to the M6 motorway and about 25 miles north of Lancaster. The map shows our current store in Kendal at 18-20 Stricklandgate. It’s a prime location in the High Street, where we are at the heart of shopping activity and we pick up a lot of passing trade. However, there are a number of problems with the site. The selling space, at 9000 Page 1 of 6
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sq. ft, is far too small to exploit the sales potential available in Kendal - the sales per square foot performances we’re achieving clearly show we can support a far larger store. The narrow frontage doesn’t reflect the offer behind the doors, and the long narrow shape of the store and bottle-neck entrance don’t help either when you’re trying to create exciting merchandising. A worse problem is access to the rear of
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