QSI Facilities Blog

The Untold Story of Remodeling Disasters in Retail

Posted by QSI Facilities on April 11 , 2018

Remodeling a retail location is a complex task, and risk permeates the simplest of remodels. Facilities Managers faced with plans for renovation in retail establishments need to follow standard facilities management best practices and a few additional remodeling best practices to avoid the types of remodeling disasters that can cause untold disruptions and tarnish brand value.

Remodeling Disasters Result From Poor Planning, Execution, and Follow-Through

Problems during remodeling are often the result of poor planning, execution, and follow-through for one or more aspects of the project. Simply using the wrong type of project management software can result in unforeseen setbacks, changes to the project schedule, and additional issues with quality. Even when a part of the project is complete, it should be reviewed for quality, as well as quantity. As explained by Nicky LaMarco of the Houston Chronicle, the average cost of a remodel in office space is $30 per hour per contractor, excluding supplies. While simple math can be used to determine the per-square cost of a retail remodel, actual costs expand exponentially, making manual tracking of costs and project management ineffective.

Construction in Retail Should Leave Customers Blissfully Unaware and Safe

Avoiding construction and remodeling disasters in retail is more complex than managing an office space remodel. This derives from the need to move goods to other locations, which should still be available to consumers. The overall flow of traffic through the retail establishment also suffers from a poorly managed remodel. If a consumer is left unaware of potential danger or a selling opportunity, like a product being on sale but in a different location, the overall cost of the remodel will rise. In other words, remodel costs include lost revenue in sales.

New Call-to-action

Consumers Need to Know a Few Things, Like Potential Dangers

In a perfect world, consumers would be entirely unaware of a remodel, but that is not practical. Facilities Managers should ensure appropriate signage is placed throughout the facility to keep consumers from becoming confused or suffering an accident. Signage should be explicit and denote construction areas, flow of foot traffic, areas of caution, access for emergency vehicles, and restricted areas. Depending on the type of remodel, additional signage should indicate uneven floors or other issues that may increase fall or injury risk for consumers and staff. Most construction activities should also take place during vacancy hours, if possible.

Using Technology to Proactively Manage a Remodel, As Well as Implementation of New Systems, Reduces Disruptions and Long-Term Costs

Even when everything goes according to plan, a remodeling disaster can evolve in retail from poor financial planning and allocation when filing quarterly or annual tax reports. As explained by Julie Eisenhauer of Clark Nuber PS, business owners and Facilities Managers may be able to take advantage of IRS Safe Harbor to reduce the amount of factual analysis necessary in a remodel. In other words, proactive management of remodeling facilities spend can free up additional capital for use and simplify evaluation of depreciation deductions. In addition, businesses may upgrade facilities to implement sustainable facilities management practices and technologies, explains Buildings.com. Depending on the size of your establishment, this can be an extremely complex process, but businesses using technology to manage capital stand and ensure the timely completion of a remodel effectively reduce disruptions and long-term costs.

Proactive Management May Eliminate Preventable Remodeling Disasters

For small and mid-sized businesses, a remodel can make or break profitability. Consumers expect a superior shopping experience, not remodeling disaster. Instead of leaving it up to chance, companies in the process of remodeling retail stores should consider outsourcing management for remodels. When applied across multiple storefronts, the same teams, technologies, and software should be used to keep costs in check. This streamlines the entire process, as well as addresses any necessary work orders, managed through a computerized maintenance management system (CMMS), and a nationwide rollout of the remodel can have a net effect of lowering overall disruptions even further.

QSI Facilities has the resources necessary to manage a single, multi-site or nationwide remodel of your facilities. Visit QSI Facilities online to get started on managing your next remodel without the headache, stress, and surplus costs now.