1. Twin Cities Habitat for Humanity
ReStore Capstone Project
May 4, 2015
By Tamara Berger, Holly Divine, and Melissa Ketter
2. 2
Business Project Report
1.0 Introduction/Background
The team’s business project will be working with is Habitat for Humanity’s ReStore shopping
center in New Brighton, MN in helping determine the sales per square footage. ReStore is a
non-profit home improvement store and donation center selling home building materials,
furniture, and appliances. The store is owned and operated by the Twin Cities Habitat for
Humanity branch. Currently seven individuals work there, but ReStore has a large volunteer
base.
2.0 Business Objective
Habitat for Humanity is a non-profit Christian housing ministry helping people globally renovate
and repair homes for individuals who cannot afford them through volunteer labor and donations.
Their services also include foreclosure prevention and affordable home ownership. The ReStore
in New Brighton’s generated profits will build five homes in 2015. Many of the volunteers
working there are individuals who will be receiving a Habitat for Humanity house.
3.0 Current Situation and Problem/Opportunity Statement
The team’s project will focus on measuring the square footage of each housing department at
ReStore. Currently, the ReStore in New Brighton is looking to bring in more clientele and
business. Also, they are re-evaluating their current store layout of how goods are sold and
profitability of product placement. The team will research and analyze the current situation. An
Excel spreadsheet will be created to help determine the average sales per square foot. The team
will then recommend any needed changes, re-merchandising and product placement for
increased sales performance for ReStore.
4.0 Critical Assumptions and Constraints
The project results will be based on the square footage that is allocated to each department on the
specific date in which the measurements are taken. The project team will work with store staff to
determine the best distribution of flex areas including but not limited to the furniture and cabinet
area located at the front of the store. Although responsibilities have been assigned under specific
team members, they may be adjusted based on needs and/or time constraints.
4.1 Final Considerations
The team researched the retail industry to better understand how different types of retailers
allocate aisle space in their stores. It was decided to follow industry “best practices” to ensure
ReStore would be divided in a meaningful way within the retail industry.
The team walked the entire space of the ReStore to try to understand how it was laid out in terms
of categories and where logical boundaries were. “Fixed” reference points, such as lines in the
cement of floor and posts were identified to help staff understand the measurements. Many of the
staff at the ReStore are volunteers, and the team wanted to keep the floor plan as simple as
possible to accommodate changing staff.
3. 3
The Excel spreadsheet needed to be simple to update each month. There is an “input” area on the
spreadsheet. Each month a new tab can be added, and the updated sales information entered. The
rest of the columns have formulas that will do all the calculations and give the sales per square
foot for each category.
5.0 Options and Recommendations
There are several items to consider while addressing the ReStore’s sales per square foot
calculations project:
1. How to evenly or most accurately distribute the square footage of aisles between
departments
2. How to determine the boundaries of non-retail space such as the POS counter
3. Need to identify appropriate department classifications and spaces
4. Create a floor that is sustainable with varying inventory
5. Develop Excel file that maintains monthly and yearly records with minimal effort
5.1 Final Recommendations
Based on the team’s research, the store’s main aisles were eliminated from department
calculations. The “Floor” and “Tile” departments were combined, as the merchandise is
intertwined within the space. “Housewares” and “Furniture” were also combined as merchandise
is usually placed side by side. Since inventory fluctuates, it was logical to keep specific
departments together.
A flex space should be created in front of plumbing to highlight special items as they become
available. No new location change for Hardware is recommended. Instead, there should be an
effort to increase dedicated department signage throughout the store for enhanced visual
shopping awareness.
6.0 Preliminary Project Requirements
The main requirements of the project include the following:
1. The project team will conduct research of area home improvement stores and thrift stores
to gather data about how their departments are categorized and labeled as well as how
common areas and aisles fit into their calculations
2. The team will make preliminary recommendations after comparing the research findings
to the ReStore’s current structure. Once complete, the team will meet with the staff for
further input of the preliminary findings and perform any necessary adjustments.
3. Measurements will be taken to determine the total square feet of each department as well
as all non-retail spaces and a living document will be created detailing the results.
4. Research will be conducted on the NCR Silver POS back office programs in conjunction
with an all team meeting in order to obtain all the relevant information needed to create a
new sales per square foot calculator Microsoft Excel file.
5. Throughout the process, the team will identify changes and recommendations that will be
presented to the client during the final presentation.
6. Create a short blog with pictures upon completion of the project as requested by Pete.
4. 4
6.1 Outcome of Project Requirements
The team reached out to several area businesses, including Target, Home Depot, Lowes, J.C.
Penney’s, and Lane’s True Value as to how their departments were categorized in terms of sales
per square foot.
The various methods were discussed with store staff to determine the most appropriate method
for ReStore, given its constraints. The team discussed their findings and suggested to the staff
which practice would best fit their business.
The team measured the ReStore building from the inside and out. Logical boundaries were
identified and used throughout the measuring process and for the store blueprint design.
If department sizes need to be shifted based on sales, staff will be able to update the spreadsheet
with new square footage easily.
Melissa Ketter obtained department sales data for the creation of the Excel department sales
spreadsheet. All relevant information was gathered from Pete O’Keefe for the creation of the
sales per square foot calculator. The spreadsheet was created to be user friendly and an ease of
use.
The team noticed and identified various opportunities ReStore could make for their departments
and sales analysis. The recommendations and opportunities were mentioned to the ReStore staff
during the final project presentation.
Holly Divine created a short blog featuring pictures from when the team spent time measuring
the store. The blog will give recognition for the work the team did on their senior Capstone
project, identify Bethel University, and promote the mission of Habit for Humanity ReStore.
7.0 Schedule Estimate
The research and preliminary analysis portion of the project will begin on March 4, 2015 and
will last approximately 3 weeks. The team will conduct a meeting with preliminary findings
around April 1-5 and will execute store measurements no later than April 11, 2015 and will
provide the final living documents and files during the project’s presentation between the dates
of May 4 and May 11, 2015.
7.1 Final Schedule
Tamara Berger designed a realistic timeline and schedule for the team to follow. The team was
able to stay on schedule throughout the whole project. The timeline was communicated to the
ReStore Staff so all stakeholders were advised of the project schedule.
8.0 Potential Risks
The plan that is presented to the ReStore must be sustainable and easily translated to the
workforce which is primarily volunteers. The plan must cater to a wide variety of customer’s
needs and wants. The challenge will be to create a plan that will accommodate an every changing
inventory.
5. 5
8.1 Risk Solutions
The team was able to process and understand the various risks presented with some of the agreed
upon deliverables. There was a slight learning curve regarding the methodology of measurement
presented in the store layout. The group made team decisions as to how certain areas in the store
would be used for sales calculations. Clear communication and team understanding made for
easy risk identification and fast resolution.
9.0 Success Criteria
A successful outcome for this project would be for the ReStore staff to embrace the suggestions
that are made by this team based on sustainability, flexibility, and ease of use. The project’s
success can be measured by management’s ability to calculate sales per square foot by
department within an Excel document that tracks monthly figures from year-to-year.
Additionally, if it proves to be a valuable tool for the management team by providing accurate
information from which to predict department trends and future business needs.
9.1 Project Success
The team was able to complete all four deliverables, which were agreed upon with Pete O’Keefe
for the ReStore. First, the team measured and created a detailed floor plan. Second, they
developed a sales per square foot tracking tool in Excel. Third, changes and opportunities were
identified to enhance business and sales for the ReStore. Finally, a written blog entry was created
for the ReStore website about the experience the team had working on the project.
10.0 Budget
This project does not require a monetary budget and is powered on volunteer academic hours.
11.0 Department Square Footage
Appliances 923.44 Lumber 203.86
Cabinets 3403.69 Outdoor 305.63
Door/Window 2272.74 Paint 182.11
Furniture 581.23 Plumbing 1895.84
Hardware 305.63 Tile/Flooring 928.25
Housewares 50.00 Tools 305.63
HVAC 305.63
Lighting 2023.90 Total Sq. Ft 27,288.57
7. 7
13.0Measurement Methodology
Identifying department boundaries proved to be challenging in spots. Every effort to keep it as
simple as possible and used key identifiers whenever possible. There are several identifying
markers that we were able to utilize such as wall, fixtures, support beams, and the lines cut into
the concrete floor.
The next thing I would like to point out is that we have used major land marks to identify where
the department ends and the main corridor begins. The flooring and window side of the store
begins at the back wall and ends flush with the restroom wall. Fixtures divide the tile/flooring
department from doors/windows.
On the opposite side of the store, it begins at the front wall and ends at the line cut into the
concrete on the outside of the lighting display pergola. The flex area in this space runs between
the pergola concrete line and the concrete line where the two different buildings meet. The aisle
separating the paint department from cabinets and appliances has been split down the middle, as
well as the aisle between the appliances and cabinets. All remaining divisions can be identified
by fixture placement.
In the back corner of the store, the lumber fixture identifies the area dedicated to lumber and the
remaining space is divided evenly between tools, outdoor, HVAC, and hardware.
Cabinets, furniture, and housewares share the space located at the front of the store. Cabinets are
allotted 75% of the space while furniture receives the remaining 25% minus the 50 sq. feet
dedicated to housewares. This area begins at the back wall and progresses forward to two
different depths. The area nearest the restrooms extends 4 feet beyond the front restroom wall
and the runs 34 feet and 4 inches toward the register counter until it passes a blue support beam.
The department then recedes toward the back wall by 5 feet and 6 inches and then turns back
toward the register wall for the remaining 24 feet and 1 inch.
14.0 Sales per Square Foot Tool
Department Gross Sales
Gross
Refunds (-)
Discounts (-)
Net Sales (=) % of net sales
Square
footage
Total
Sales per
Square
Foot
Notes
Unassigned $0.00 0.00% 928.25 $ -
$0.00 0.00% 582.23 $ -
$0.00 5.75% 50.00 $ - Could not identify exact square footage
$0.00 8.73% 2023.90 $ -
$0.00 2.65% 203.86 $ -
$0.00 2.09% 182.11 $ -
$0.00 5.61% 1895.84 $ -
$0.00 10.01% 2272.74 $ -
$0.00 6.64% 923.44 $ -
$0.00 21.90% 3403.69 $ -
$0.00 0.00% 305.63 $ -
$0.00 3.88% 305.63 $ -
$0.00 0.58% 305.63 $ -
$0.00 0.72% 305.63 $ -
$0.00 $0.00 $4,829.31 $90,929.56 100.00% 13,688.58 $ -
$0.00 $0.00 $4,829.31 $90,929.56 100.00% 13,688.58 $ -
Key:
Equals input area from
NCR monthly report
FLOORING/TILE
Twin Cities Habitat for Humanity
510 County Road D West
New Brighton, MN 55112
Category
Hardware, Tools, HVAC, and Outdoors
share a space and are split evenly
TOOLS
HVAC
OUTDOORS
FURNITURE
HOUSEWARES
LIGHTING
LUMBER
PAINT
PLUMBING
Total
Total
DOORWINDOW
APPLIANCE
CABINET
HARDWARE
8. 8
Project Charter
March 2, 2015
Project Title: ReStore- Sales per square foot
Project Start Date: March 4, 2015 Project End Date: May 11, 2015
Project Timeline/Milestones:
Benchmarks and Milestones Due Date Completed
Begin project March 4, 2015 March 1, 2015
Schedule meeting to review preliminary concepts, take
measurements
March 18, 2015 March 19, 2015
Research hardware space allocation and categorization
within other companies
March 18, 2015 March 17, 2015
Research NCR Silver POS back office programs for
information
March 18, 2015 N/A
Analyze and compare data to current ReStore
configurations -Select options to present to client
March 25, 2015 March 22, 2015
Identify and select options for interpreting and allocating
common areas and aisles
March 25, 2015 March 22, 2015
Create space allocation documents for meeting March 29,2015 March 22, 2015
Meet with ReStore staff to review options and obtain Excel
file data to begin creating the calculator
April 1-5, 2015 March 26, 2015
Review findings and make necessary changes/ End of
planning phase
April 8, 2015 March 28, 2015
Begin implementation phase/ Measure each department’s
square footage as well as non-retail space
April 11, 2015 April 9, 2015
Create department square footage document April 19, 2015 April 16, 2015
Identify and create final recommendations document April 19, 2015 April 19, 2015
Develop and test Excel sales per square foot calculator file April 21, 2015 April 15, 2015
Preliminary presentation April 24, 2015 April 23, 2015
Finalized presentation and deliverables/ End of
implementation phase
May 2, 2015 May 1, 2015
Presentation May 4-11, 2015 May 4, 2015
Client Presentation Evaluation / End of project May 11, 2015 May 4, 2015
