I have opened over 200 new stores around the World.
 My first opening was as a 21 year old store manager for a luxury fashion and textile group in Southern Africa where we
struggled with contractor issues, border closures and importation problems not to mention language.
 Then as area manager in the UK for a chain of newsagents and convenience stores where we operated with head office
support and shop fitters and ran a very slow but effective opening and refurbishment program.
 I moved on to run a franchise in the convenience sector and opened over 40 stores, some brown field sites, other already
trading as independent stores. I managed the shop fits directly with shop fitters, suppliers and marketing.
 I then progressed to Operations Manager for the J Sainsbury’s Locals and opened stores for them all across London and the
Home counties. Here we were handed a turn key operation by the shop fitters and FM team, with my role focusing on the
product merchandising, staff recruitment and operational standards.
 I was then headhunted into Poundland as Operations Director and later onto 99p stores as Managing Director where we
opened over 100 stores in a very short time period during the worst trading period in living memory. Here we had to deal with
Private equity partners and present pre acquisition reports, budgets and timelines for approval.
 I have spent the last 5 years operating as an Independent consultant advising International retail groups from The Arabian
Gulf , South Africa and across Europe on ways to improve their operational efficiencies.
 I have experienced store builds and openings that ran like clockwork, but carry the scars from many that didn’t. The advice in
this note is gained over many years and from experience across many continents and store types. I have operated in top level
corporations and family run entrepreneurial businesses, all had their good and bad points when it came to store openings.
Store sizes have varied from 300sq m to over 10,000sq m with fit out budgets running into tens of millions of pounds.
 So I have the T-shirt and have seen most things that can happen in a fit out and at an opening. This presentation is to
promote my business and to act as a guide to my peers and those that follow.
I hope it proves useful.
Nigel Peckham
Retail Operations Specialist.
Start as you mean to finish...
 It is vital to have a detailed strategic plan for new store acquisitions
and to have stringent protocols in place to manage variations.
 The plan must include store location criteria, target adjacencies,
minimum and maximum footprint requirements, warehousing
capacities, delivery access, customer entrances and shop windows.
 Utilising location planning software is dependent on the store format
and brand. It is not possible to rely solely on software to locate stores
due to the wildly varying factors in any given location.
 New brands and emerging markets need even greater focus on
location planning due to the greater demands of brand building.
No store location is perfect!
 In order to meet a challenging store roll out plan it is
essential to know what is acceptable and what isn’t.
 A site visit report sheet must be drawn up and used
by all parties visiting potential sites.
 The visit report sheet will evolve as lessons are
learned.
 The ratio of visit reports to acquired sites shows how
accurately your team and strategy are aligned.
 Post opening reviews are vital to improve future
performance.
You’ve find a site, now what?
 Pre opening checklists are required for all aspects of
the store fit out and pre-opening phases.
 Dedicated resource must be made available for on-
site management and progress reporting.
 Central control of all new store activity is vital to
ensure management are aware of progress.
 Quality control and on-site decisions must be the
responsibility of someone authorised to act.
 The FM team must provide management with
forecasts for key delivery dates on the store.
Budgeting costs and sales
 Sales forecasts must be made based on similar
stores in the group or a reasonable estimate against
any known competitors in the local area. Sometimes
it is just a best guess; +/- 50% is not unheard of !
 Fit out costs cannot be a guess, they have to be
detailed and known ahead of sign off on the project.
 Change will happen. Variances must be noted and
reviewed post opening for future reference.
 Post opening reviews at set intervals are vital to
improve budgeting accuracy for future stores.
People -most important.
 A great store manager has more effect than any
other single aspect of a new store opening.
 Try to use existing managers for all new stores.
 Avoid opening stores at peak seasonal times.
 Training is key to ensuring a great opening.
 Plan experienced staff to support the new store for
both pre and post opening periods.
 Ensure payroll has all new staff details and full
record of hours worked before the payroll is run.
Set the standards.
 All new staff must meet the company standards with
regard to education, appearance and attitude.
 Do not be afraid to remove any staff with poor
attitude early. Bad apples and all that!
 Ensure all existing staff supporting the opening are
ambassadors for the business.
 Show staff how to display stock, how to replenish
fast sellers and what to do if something goes wrong.
 Encourage questions and suggestions no matter
how trivial or mundane they may seem to you.
Lots of new faces.
 Make sure all contractors and visitors know who is in
charge of the site.
 Staff must know who the “manager” of the store is on
any given day. A picture and a name go a long way!
 All visitors prior to opening must sign in/out.
 Advise staff of any head office visitors again with a
picture/name if at all possible.
 Operate a secure store prior to opening, ensure
everyone is challenged to produce ID. A slack store
prior to opening will most likely remain so afterwards.
Issues and changes to plans
 Things will go wrong.
 Changes will be needed.
 The unexpected will occur.
 It is how you deal with them that matters. Resolve
what you can on-site. Notify others about the rest.
 DO NOT HIDE BIG ISSUES – TIME IS SHORT.
 Log issues and detail actions taken.
 Keep focused on what you can effect. If it “rains”
deal with it as best you can and move forwards!
Fit out.
 The PM must resolve all issues and ensure delivery
of the store to the retail team on time.
 Variations on cost and quality can be reviewed later.
 The store layout and equipment must be detailed on
a CAD plan at completion for use at head office.
 A full inventory of equipment should be produced.
 Snagging and outstanding works must be detailed by
the FM team on the handover date.
 All contractors should be off site pre merchandising.
Merchandising
 A detailed store plan showing departments and
sections for merchandise layout is vital.
 An experienced team of staff and managers should
be used to layout the stock on the shopfloor.
 New staff should have time working in another store
replenishing stock prior to their store open
 There must be sufficient time to merchandise and to
order any missing lines and back up stock.
 Any opening promotional material must be available
for staff to check off for availability of all lines.
First impressions count!
 New stores are usually supported by a raft of special
offers to attract new customers to your opening.
 The greater the incentive; the greater the reaction,
leading to greater pressure on your team to deliver!
 It is vital that marketing and buying are on the same
page when it comes to opening offers.
 Do not over promise and under-deliver!
 Customer goodwill and loyalty are key to the
success of a new store.
First day fever!
The marketing worked.
The store was ready.
The customers came.
How to maximise an opening
Good opening Great opening(in addition)
 Fit out complete
 Opened on time
 Full of stock
 Enough staff
 Promotions all available
 Managers in place
 Senior management happy
 Promotional media all active
 Lots of customers arrive
 Staff are trained and excited
 Managers are fresh not
exhausted
 Back up stocks ready to
replenish the opening offers
 Store is able to change the
digital media as required
 PoS is ready to replace sell
outs and avoid empty
displays
Opening day checklist
 Are the tills active and all scanning? Test each one.
 Have all the staff arrived?
 Does everyone know what they have to do today?
 Are any back up staff on hand?
 Managers should have sections to look after.
 Back areas are vital for staff replenishing stock,
taking breaks and dealing with cashing up etc.
 Pre builds of promotional replenishment lines may
be required depending on opening discounts
Pre-opening marketing
 This needs to be right for your brand; for the location
and appropriate for your customers.
 The stronger the brand, the greater the impact on
the area and the greater the customer response.
 The level of discount on offer for any opening
specials raises the rate of sale on those lines and
thereby the need to ensure availability of those lines.
 All too often opening specials sell out in a short
space of time but the local marketing media
continues to promote those lines for days afterwards.
Everyone loves a bargain!
Prepare back up stocks of the
best offers on any advertising.
Task staff as replenishers
of ends and dump stacks etc.
Ensure managers are mobile
within the shop floor scanning
for issues throughout the day.
Avoid the “Royal” tour of head
office visitors on opening day
distracting managers.
Ensure zonal control of staff in
large stores to maintain high
presentation standards.
Can you have too
many customers?
•In a word YES.
•Control of excessive
numbers of customers is key
to a good opening.
•Prepare for every eventuality
in advance.
•Print ticketing in case of
needing to control access at
the front doors.
•Provide free sweets and
drinks if needed to your
customers while they queue.
Dealing with unhappy
customers at an opening.
 Allocate a patient member of staff to deal with
unhappy customers, more if required.
 Give them authority to act on given issues.
 Have discount vouchers to give as an apology.
 Station a senior manager at a given location as a “go
to” solution for serious issues.
 Resolve the underlying issue if at all possible to
avoid creating more unhappy shoppers.
 Learn lessons for the future from your customers!
The biggest mistakes.
 Not planning properly.
 Poor communication between site and head office.
 People hiding issues.
 A lack of training time for new staff.
 Store managers being over worked.
 Head office staff getting in the way at an opening.
 Insufficient stock of the main promotions.
 Inflexible marketing programs.
 Lack of reviews of issues after an opening.
Contact
 Please fee free to contact me if you need help with
improving your store opening program or post
opening performance for new stores.
 I have a number of associates and between us we
can offer a wide range of consulting and operational
support to retailers.
 Mobile: +44 (0) 78899 64548
 Email: nigelpeckham@virginmedia.com

Maximising new store openings

  • 2.
    I have openedover 200 new stores around the World.  My first opening was as a 21 year old store manager for a luxury fashion and textile group in Southern Africa where we struggled with contractor issues, border closures and importation problems not to mention language.  Then as area manager in the UK for a chain of newsagents and convenience stores where we operated with head office support and shop fitters and ran a very slow but effective opening and refurbishment program.  I moved on to run a franchise in the convenience sector and opened over 40 stores, some brown field sites, other already trading as independent stores. I managed the shop fits directly with shop fitters, suppliers and marketing.  I then progressed to Operations Manager for the J Sainsbury’s Locals and opened stores for them all across London and the Home counties. Here we were handed a turn key operation by the shop fitters and FM team, with my role focusing on the product merchandising, staff recruitment and operational standards.  I was then headhunted into Poundland as Operations Director and later onto 99p stores as Managing Director where we opened over 100 stores in a very short time period during the worst trading period in living memory. Here we had to deal with Private equity partners and present pre acquisition reports, budgets and timelines for approval.  I have spent the last 5 years operating as an Independent consultant advising International retail groups from The Arabian Gulf , South Africa and across Europe on ways to improve their operational efficiencies.  I have experienced store builds and openings that ran like clockwork, but carry the scars from many that didn’t. The advice in this note is gained over many years and from experience across many continents and store types. I have operated in top level corporations and family run entrepreneurial businesses, all had their good and bad points when it came to store openings. Store sizes have varied from 300sq m to over 10,000sq m with fit out budgets running into tens of millions of pounds.  So I have the T-shirt and have seen most things that can happen in a fit out and at an opening. This presentation is to promote my business and to act as a guide to my peers and those that follow. I hope it proves useful. Nigel Peckham Retail Operations Specialist.
  • 3.
    Start as youmean to finish...  It is vital to have a detailed strategic plan for new store acquisitions and to have stringent protocols in place to manage variations.  The plan must include store location criteria, target adjacencies, minimum and maximum footprint requirements, warehousing capacities, delivery access, customer entrances and shop windows.  Utilising location planning software is dependent on the store format and brand. It is not possible to rely solely on software to locate stores due to the wildly varying factors in any given location.  New brands and emerging markets need even greater focus on location planning due to the greater demands of brand building.
  • 4.
    No store locationis perfect!  In order to meet a challenging store roll out plan it is essential to know what is acceptable and what isn’t.  A site visit report sheet must be drawn up and used by all parties visiting potential sites.  The visit report sheet will evolve as lessons are learned.  The ratio of visit reports to acquired sites shows how accurately your team and strategy are aligned.  Post opening reviews are vital to improve future performance.
  • 5.
    You’ve find asite, now what?  Pre opening checklists are required for all aspects of the store fit out and pre-opening phases.  Dedicated resource must be made available for on- site management and progress reporting.  Central control of all new store activity is vital to ensure management are aware of progress.  Quality control and on-site decisions must be the responsibility of someone authorised to act.  The FM team must provide management with forecasts for key delivery dates on the store.
  • 6.
    Budgeting costs andsales  Sales forecasts must be made based on similar stores in the group or a reasonable estimate against any known competitors in the local area. Sometimes it is just a best guess; +/- 50% is not unheard of !  Fit out costs cannot be a guess, they have to be detailed and known ahead of sign off on the project.  Change will happen. Variances must be noted and reviewed post opening for future reference.  Post opening reviews at set intervals are vital to improve budgeting accuracy for future stores.
  • 7.
    People -most important. A great store manager has more effect than any other single aspect of a new store opening.  Try to use existing managers for all new stores.  Avoid opening stores at peak seasonal times.  Training is key to ensuring a great opening.  Plan experienced staff to support the new store for both pre and post opening periods.  Ensure payroll has all new staff details and full record of hours worked before the payroll is run.
  • 8.
    Set the standards. All new staff must meet the company standards with regard to education, appearance and attitude.  Do not be afraid to remove any staff with poor attitude early. Bad apples and all that!  Ensure all existing staff supporting the opening are ambassadors for the business.  Show staff how to display stock, how to replenish fast sellers and what to do if something goes wrong.  Encourage questions and suggestions no matter how trivial or mundane they may seem to you.
  • 9.
    Lots of newfaces.  Make sure all contractors and visitors know who is in charge of the site.  Staff must know who the “manager” of the store is on any given day. A picture and a name go a long way!  All visitors prior to opening must sign in/out.  Advise staff of any head office visitors again with a picture/name if at all possible.  Operate a secure store prior to opening, ensure everyone is challenged to produce ID. A slack store prior to opening will most likely remain so afterwards.
  • 10.
    Issues and changesto plans  Things will go wrong.  Changes will be needed.  The unexpected will occur.  It is how you deal with them that matters. Resolve what you can on-site. Notify others about the rest.  DO NOT HIDE BIG ISSUES – TIME IS SHORT.  Log issues and detail actions taken.  Keep focused on what you can effect. If it “rains” deal with it as best you can and move forwards!
  • 11.
    Fit out.  ThePM must resolve all issues and ensure delivery of the store to the retail team on time.  Variations on cost and quality can be reviewed later.  The store layout and equipment must be detailed on a CAD plan at completion for use at head office.  A full inventory of equipment should be produced.  Snagging and outstanding works must be detailed by the FM team on the handover date.  All contractors should be off site pre merchandising.
  • 12.
    Merchandising  A detailedstore plan showing departments and sections for merchandise layout is vital.  An experienced team of staff and managers should be used to layout the stock on the shopfloor.  New staff should have time working in another store replenishing stock prior to their store open  There must be sufficient time to merchandise and to order any missing lines and back up stock.  Any opening promotional material must be available for staff to check off for availability of all lines.
  • 13.
    First impressions count! New stores are usually supported by a raft of special offers to attract new customers to your opening.  The greater the incentive; the greater the reaction, leading to greater pressure on your team to deliver!  It is vital that marketing and buying are on the same page when it comes to opening offers.  Do not over promise and under-deliver!  Customer goodwill and loyalty are key to the success of a new store.
  • 14.
    First day fever! Themarketing worked. The store was ready. The customers came.
  • 15.
    How to maximisean opening Good opening Great opening(in addition)  Fit out complete  Opened on time  Full of stock  Enough staff  Promotions all available  Managers in place  Senior management happy  Promotional media all active  Lots of customers arrive  Staff are trained and excited  Managers are fresh not exhausted  Back up stocks ready to replenish the opening offers  Store is able to change the digital media as required  PoS is ready to replace sell outs and avoid empty displays
  • 16.
    Opening day checklist Are the tills active and all scanning? Test each one.  Have all the staff arrived?  Does everyone know what they have to do today?  Are any back up staff on hand?  Managers should have sections to look after.  Back areas are vital for staff replenishing stock, taking breaks and dealing with cashing up etc.  Pre builds of promotional replenishment lines may be required depending on opening discounts
  • 17.
    Pre-opening marketing  Thisneeds to be right for your brand; for the location and appropriate for your customers.  The stronger the brand, the greater the impact on the area and the greater the customer response.  The level of discount on offer for any opening specials raises the rate of sale on those lines and thereby the need to ensure availability of those lines.  All too often opening specials sell out in a short space of time but the local marketing media continues to promote those lines for days afterwards.
  • 18.
    Everyone loves abargain! Prepare back up stocks of the best offers on any advertising. Task staff as replenishers of ends and dump stacks etc. Ensure managers are mobile within the shop floor scanning for issues throughout the day. Avoid the “Royal” tour of head office visitors on opening day distracting managers. Ensure zonal control of staff in large stores to maintain high presentation standards.
  • 19.
    Can you havetoo many customers? •In a word YES. •Control of excessive numbers of customers is key to a good opening. •Prepare for every eventuality in advance. •Print ticketing in case of needing to control access at the front doors. •Provide free sweets and drinks if needed to your customers while they queue.
  • 20.
    Dealing with unhappy customersat an opening.  Allocate a patient member of staff to deal with unhappy customers, more if required.  Give them authority to act on given issues.  Have discount vouchers to give as an apology.  Station a senior manager at a given location as a “go to” solution for serious issues.  Resolve the underlying issue if at all possible to avoid creating more unhappy shoppers.  Learn lessons for the future from your customers!
  • 21.
    The biggest mistakes. Not planning properly.  Poor communication between site and head office.  People hiding issues.  A lack of training time for new staff.  Store managers being over worked.  Head office staff getting in the way at an opening.  Insufficient stock of the main promotions.  Inflexible marketing programs.  Lack of reviews of issues after an opening.
  • 22.
    Contact  Please feefree to contact me if you need help with improving your store opening program or post opening performance for new stores.  I have a number of associates and between us we can offer a wide range of consulting and operational support to retailers.  Mobile: +44 (0) 78899 64548  Email: nigelpeckham@virginmedia.com