Retail Shopping Centre Fashion Advertising
Filed under Fashion Advertising
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Do you have a retail store located in a shopping centre? If so, I’m sure you’re familiar with the extremely high rent and outgoings bill you receive every month. Besides the building and services component – a portion of your monthly fee to the shopping centre company also covers centre promotion and advertising. It’s the shopping centre’s role to bring in people so they can charge the retailer a fee for the space. Nothing new with that. However, it’s actually a good idea to know how much of your annual rent is attributed to receiving store traffic (browsers and customers). |
Let say you have a 30m2 store. Figure 1 : Your current shopping centre rent (let’s use $50,000 per annum for simpicity). Figure 2 : The cost of renting a 30m2 office in a street in the back lots of an industrial area (let’s say it costs $15,000 per annum). The difference $35,000, is the annual cost paid for the ‘better’ location (shopping centre v.s. back lots).
Some retailers choose to have a store located in a quieter street location and not in a shopping centre, but in order to create the same revenue, much more money needs to be spent on fashion advertising.
i.e. Shopping Centre = high rent, lower individual store fashion advertising expenses.
Quiet location = lower rent, higher individual store fashion advertising expenses (in order to produce a similar annual revenue).
There is aways that trade-off. Whether one option is better or not for your store really comes down to your level of experience in fashion retailing, your brand and sales system.
