Retail Store Reopening Checklist -Post Covid

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By: Forbes

Here’s a excerpt from an article from Forbes on tips on what to check when you reopen post-covid:

My heart sincerely goes out to the 30% of small business that are estimated to be unable to re-open after the Corona Virus drops to a manageable level. Many of these businesses will be hard and soft goods retailers. Few, if any, deserving of the fate that awaits. For those small retailers who are able to financially weather this unforeseen storm, a period of re-opening and re-establishment will be at hand. You should proceed with the intent of streamlining everything within your sphere of control and employ out-of-the-box thinking like never before. A checklist of steps in this journey that you may wish to consider follows.

A) Decide (honestly) how stable and healthy your organization’s cash position will be at re-opening. The more cash cushion you have, the more daring you can be with re-opening changes to your business. Those businesses with little cash should consider fewer daring adjustments to their business model, instead considering them life or death modifications that will not tolerate poor choices.

B) Prioritize and analyze your retail profit & loss statement by line item. Your P&L statement should be accurate and current. Some organizations only publish profit and loss statements a few times a year. That type of move is financial suicide. You have to know how you are doing on a recurring basis to properly analyze and manage your business. Separate P&L line items into income and expense categories, then prioritize / sort them by size (amount). Scrutinize each line item for possible improvement and challenge your management team to make ideas a reality.

C) For retail organizations with multiple stores, carefully scrutinize the operating performance of “each” location. When retail lenders step in to take over control of a failing business one of the first steps they pursue is to quickly close poorly performing stores. In all my years as a retail consultant I could never make sense of senior retail management that held on to poorly performing stores, despite their rationale not to. In the end, poor performing stores always ended up being closed anyway, so do it now. Right now. Re-negotiate leases, find sub-tenants, consolidate inventory, sell unneeded fixtures.

 

Read the full story HERE.