Cases

PROBLEM:

Dress Code* retailer approached the shopping center developer to ask for a discount due to sales decrease. The retailer has stores in two shopping centers of this developer.

SOLUTION:

The developer analyzed the retailer’s sales in both shopping centers where Dress Code had stores. The analysis revealed:

• The product range offered at a store in the shopping center 1 averaged 64% of the product range offered at a store in the shopping center 2.
• An ABC analysis identified the groups of products that generated the most revenue.
• Some popular product items were not represented at the store in the shopping center 2.

RESULT:

After the developer pointed out this problem to the tenant, the tenant expanded its product range in the shopping center 2. As a result, the tenant’s revenue soared 20%, while the income of the shopping center from rental payments rose by €76,000 per year.

*not tenants’ real names