Sector: Confectionary - Ongoing Multiple Engagements
A large, national confectionary company tasked Vestian with reducing occupancy costs and rightsizing its retail stores to properly cover its desired markets. To achieve this, Vestian evaluated the company’s entire real estate portfolio, then built and executed a strategy for the company to expand nationally.
Based upon market research and evaluations, Vestian determined that the company was paying above-market price at many of its locations and its retail store portfolio often fell within close proximity of one another, therefore cannibalizing sales and driving down overall profits.
To resolve these challenges, Vestian worked with the company’s management team to provide guidance on store closures and price restructuring for stronger units. In addition, Vestian’s project management team remodeled, rebranded and refurbished select stores within the company’s portfolio based on specifications and budgets provided by the company. Vestian also worked with the company’s marketing team to oversee design and construction from planning through project completion at 25 locations.
In the past 18 months, Vestian has worked hand-in-hand with the company to restructure its real estate portfolio to increase sales and gain a larger market share within its industry. To date, Vestian has installed processes for evaluating occupancy costs, targeted new locations and rebranded existing stores. The financial impact of Vestian’s services is projected to be $1 million in total savings over five years.
- Multiple locations
- Real estate portfolio evaluation
- Services projected to save client $1 million on real estate over five years
- Negotiated lease renewals at 15 locations
- Negotiated rent concessions in existing leases at 24 locations
- Negotiated store closures and termination fees at seven locations
- Oversaw project management at 25 locations
- Identified and secured pop-up locations within regional markets
- Assisted with lease administration and lease abstracting
- Assisted company with demographic profile of current customers
- Conducted a market survey and compensation review of 70-plus retail locations and regional distribution centers
- Vestian’s team assisted a large, national confectionary company to evaluate its entire real estate portfolio, ultimately reducing total occupancy costs. Vestian provided guidance on pricing, market optimization and coverage to rightsize the number of retail locations and distribution network