More shops, better locations, lower rents. A leading German retailer approached us with these ambitious goals.
After the takeover by a new owner, he now wants to expand into new regions and markets with the existing and successful concept within a very short time. Initial attempts at expansion showed that the required number of cycles and quality could not be achieved with the existing structures. So B&P Bergmannpartners was commissioned as an extended workbench and expansion engine.
The primary goals were:
- Continuous expansion with a focus on long-term profitability.
- Improvement of location qualities
- Reduction of rents and improvement of rental conditions
After about one year of cooperation, B&P has already exceeded the targets.
B&P has acquired and negotiated around 60 new openings. The quality of the locations has also increased noticeably. Whereas the portfolio before the engagement included as many A and C locations, B&P has rented mainly A and rarely B locations.
The goal of below-average rents was also achieved, with B&P negotiating 33% lower rents on average. Thus, the client saved several million euros within one business year..
This is how we did it
Working together, B&P was able to fully exploit its competitive advantages. The key to success lay in the regionality of the staff, the excellent network as well as exact market knowledge. Our approach in summary:
- Planning of the expansion strategy based on the company’s specific success factors.
- Strategically guided acquisition of target areas
- Negotiations led by experienced property managers
At the beginning of the engagement, all existing data and information about the client, market and targets were first identified and evaluated. This resulted in an expansion strategy that summarised all essential criteria for success. It included specifications for macro and micro locations, maximum rent levels, but also property-related factors such as visibility or layout. The future locations were selected on the basis of this strategy. In this way, the long-term profitability of each individual location could be guaranteed from the outset.
B&P is regionally positioned. With property managers spread throughout the country, there is on the one hand a broad network of landlords, managers and other space providers, and on the other hand a wide range of market knowledge. The acquisition of the corresponding target areas could thus be carried out quickly and efficiently.
B&P was also able to benefit from its knowledge of markets and comparable rents as well as its many years of experience in the corresponding negotiations for rents, terms and other contract conditions. As a result, the client was able to acquire high-quality locations at below-average rents.
Sustainable successful expansion – made by B&P Bergmannpartners