News

11.05.09
White Paper: How To Renovate and Swap In-Store Fixtures Seamlessly

Keeping the Retail Floor Looking Fresh:

How to Swap Retail Fixtures and Renovate Seamlessly

- HK White Paper -

Keeping the Retail Floor Fresh: How you can renovate and swap out retail fixtures at multiple store locations in a three-night blitz.

Have you contemplated altering store design and display fixtures at multiple retail locations – only to be stalled by the lengthy construction process and red tape involved with the redesign and installation?

This white paper outlines the revolutionary renovation and fixture swap program Handels Klein Ltd performed simultaneously at 32 locations across Canada for a major international retailer.

Intended for construction managers and retail executives, this white paper outlines how to reduce fixture installation costs and increase the speed of bringing new in-store designs to life. This report will cover:

1. Cost savings and efficiencies

2. How to establish a successful renovation and fixture swap program

3. Challenges and potential risks

4. The benefits of a targeted and time sensitive approach

1. Cost Savings and Efficiencies

During our 32 location blitz over the course of three nights, we were able to re-fixture and renovate in a timely manner. The cost savings from being able to package multiple renovation projects and fixture installations is significant for both the owner and the supplier.

i. Increase Speed

By completing a scope of work that would typically take a few weeks in just three nights – the speed of transition to a new in-store look is tremendous. This program is extremely effective for brands looking to change their seasonal appearance or there major display systems. With all work being conducted in the evenings and all construction material removed during store operation hours, the locations underwent drastic facelifts without ever having to close their doors to shoppers.

ii. Increase Efficiencies

Using multiple contractors over a wide geographic area to perform renovations and installations creates a logistical nightmare. How can construction managers possibly keep track of so many different stakeholders at once. By centralizing with one firm that can support multiple locations across the globe, the cost of doing business decreases, as does the number of stakeholders managing the process – this creates cost savings.

iii. Cost Certainty and Budgeting

Improving logistics saves cost - period. By centralizing fixture swap outs and in-store renovations to one construction manager over a short time period, everyone is able to gain economies of scale and drive down costs. Construction mobilization expenses reduce significantly when in-field operations are centralized to one provider. Moreover, guaranteed cost certainty will improve the accuracy of retail capital budgeting.

2. How to Establish a Renovation and Fixture Program

When undertaking a project with an aggressive timeline it is crucial to establish goals and milestones as early as possible. Be clear about why and how you will undertake the pro gram and communicate the reasons clearly to staff. Before you undergo the project however, there are a few key steps to take:

i. Find the Right Construction Partner

It is critical to find the right partner that understands your business clearly. The construction or installation partner should be a niche firm that can navigate the nuances of the retail business and meet aggressive timelines easily. The firm should be nimble and responsive to your specific needs. Ask lots of good questions up front.

ii. Create a Construction Schedule

It may sound redundant, but creating a clear schedule with your construction partner will help to build buy in at the store and in-field levels. Communicate the schedule well in advance so all stakeholders, tore managers are aware of the scope of work and the timeline. Adhere to the schedule as closely as possible to avoid miscommunication or project delays of any kind.

iii. Perform In-Store Surveys or Audits

Create a template that can be used to document all the required work at each store location. The template should cover the total scope of work, any relevant measurements required and ‘red flags’ that could potentially cause execution delays. Multiple photographs should be taken to provide both designers and execution crews with a visual aid of the space. Each survey or audit should take a minimum of two hours to complete and the individuals performing the actual work should ideally conduct the surveys.

iv. Clear Design Drawings

A good set of design drawings will eliminate in-field errors and communication breakdowns. By issuing accurate drawings as early as possible, in-field crews can prepare well in advance for the evening renovation and installation portions of the project.

v. Create a Roadmap for Communication

With multiple site locations operating simultaneously, it is important to develop a communication plan for issue resolution. There should be an agreed upon line of command from the front line installation crew through to the project manager so there are no gaps in the process. This communication plan should also include store managers – as they will need to be informed of the schedule and renovation or re-fixturing plan. It is crucial to create a visual roadmap of the communication plan and share this with everyone involved in the project.

3. Challenges and Potential Risks

With an ambitious execution plan time schedule comes numerous challenges and risk, which should be identified early in the planning process. By identifying potential stumbling blocks and subsequently creating contingency plans that address each of these issues, it is possible to create a seamless renovation and fixture swap program. Below are some common challenges and risks:

i. Logistics

It is critical to ensure that all potential logistical issues for the project are understood and a logistics plan is established very early in the process. Take the time to ensure that installation is seamless. For example, create standardized palettes of construction material and fixtures that can be used for all store locations. Make sure in-field crews have practice unpacking and installing the fixtures in advance of the project so the actual installation runs smoothly.

Coordinating multiple shipments and deliveries simultaneously can often be difficult – particularly when cross border shipping is involved. If a third party company is handling logistics - material can be delayed at the border, shipped late or not at all. Logistical errors can seriously affect the success of an aggressively scheduled project and should be treated accordingly. Up front planning is the key to successful installation.

ii. Communication Breakdown

With a large amount of activity in a short period of time comes the risk of miscommunication that can adversely affect the success of a retail renovation or fixture swap out. In-field crews report one thing, administration staff another – it can get messy. A strong web platform that enables real time communication, document and photograph uploading capabilities will ensure there are no communication delays. Make sure to have clear lines of communication with project punch lists or sign-offs that can easily be shared and understood. Smart Phones in the field are essential.

iii. Quality Control

In an attempt to complete significant scopes of work and re-fixture multiple locations, sometimes an emphasis on speed can replace quality workmanship. Deficiencies and incomplete work can seriously hinder the close-out process. Be sure to provide all on-site crews with quality control sheets that can be verified by store managers. This will eliminate poor workmanship and ensure that any deficiencies are dealt with in a timely fashion. While speed is crucial to a renovation and fixture swap blitz, quality workmanship must not suffer.

4. Benefits of a Targeted and Time Sensitive Approach

Undergoing renovations and re-fixturing at multiple retail locations can be extremely difficult and costly if executed over a wide period of time. This is particularly true if store locations are required to close during working hours to complete the work. By taking an aggressive scheduling approach and completing both renovations and fixturing during a three night blitz, significant cost savings can be achieved and stores can remain open for business. Beyond cost, there are other benefits to undergoing a three night renovation and fixture swap:

a. Increased speed to market of new product lines

b. Opportunity to brand or re-brand quickly to meet market demands

c. Reduced construction time means increased product selling time

d. Accurate annual capital budgeting

When undertaking a renovation or fixture swap program it is crucial to find a construction partner that understands the nuances of the retail environment. This means targeting niche constructors or installers that can accommodate aggressive timelines and specific construction and fixture requirements.

For more information on in-store renovations and fixture strategy, call Handels Klein Ltd. 1.888.777.2460 or email b.sharpless@handelsklein.com

10.20.09
HK Controller Edwin Tsui Speaks
Edwin Tsui, Controller at Handels Klein Ltd is set to speak at Markville Secondary School on November 6, 2009. Mr. Tsui is a contributing member of the Certified General Accountants Association of Canada and will speak to the Markville audience regarding the value of strong accounting skills in the context of modern business.

Handels Klein is always seeking out ways to give back to the community and create a better tomorrow. Mr. Tsui's address will focus on the importance of education and professional accreditations for future business people. As Mr. Tsui states, " I am very excited to be able to contribute to the future success of young people in Canada. The CGA provides a great platform for business skills and it is always special when you can help influence young people in a positive way."

For more information on the CGA program, please visit www.cga-canada.org.

08.31.09
Handels Klein Speaks at RMHC International Conference "better Together"
Craig McMunn, VP Construction Services at Handels Klein spoke at the RMHC International Conference "better Together" on the construction process for the Family Room program at RMHC. Handels Klein has worked with RMHC on the construction and development of numerous Family Room programs across Canada. Giving back to the community and affecting positive change is central to the success of Handels Klein as a company. We take our partnership with RMHC very seriously and value the learning that comes from giving back to those in need.

Craig's speech was very well received and attendees were "...extremely impressed with the competence and subject matter knowledge displayed."

To learn more about the Ronald McDonald House Charity, please visit www.rmhc.ca

05.22.09
"Handels Klein LEED certified work featured in VMSD"

Handels Klein is committed to environmentally responsible construction and development. In conjunction with Jordan Parnass Digital Architecture, Handels Klein (HK) completed the visionary LEED certified construction of American Apparel’s 9^th Avenue Manhattan retail location. Please click the link below to read the complete article.

http://vmsd.com/content/american-apparel

04.07.09
"Handels Klein President Eric Abugov set to raise $10,000 for the Princess Margaret Hospital."
Eric Abugov of Handels Klein will join thousands of others in the Ride to Conquer Cancer benefiting the Princess Margaret Hospital. He plans to cycle over 200 kilometres, from Toronto to Niagara Falls, with all the proceeds raised going to support cancer research, treatment, and services.

The Princess Margaret is Canada's leading comprehensive institution devoted to cancer research and care, and the work they do is leading-edge. According to the National Cancer Institute of Canada, over 153,100 new cases of cancer and 70,400 deaths from cancer were estimated to occur in 2006.

Eric Abugov states, “I really believe in the importance of this cause. Everyone has been affected by cancer either directly or indirectly and it is crucial to keep fighting for new treatments and eventually a cure. If riding a bike can save lives – count me in!”

For more information please visit www.conquercancer.ca

04.02.09
"Handels Klein announces construction project financing to promote client growth."
Handels Klein is currently offering attractive construction project financing. In a challenging economic climate, the company is trying to promote growth in North America by helping their clients save vital cash for operations.

“We believe this unique construction offering will really help our customers differentiate and grow in this marketplace. With a lack of available capital out there, we think this is a great opportunity to continue to build partnerships with retail brands and ensure the success of their businesses,” says Eric Abugov, CEO of Handels Klein.

For more information on how you can receive custom tailored construction financing, please visit www.handelsklein.com

03.27.09
"Craig McMunn of Handels Klein delivers webinar for Ronald McDonald House Charities of Canada."
Craig McMunn, VP Construction Services for Handels Klein delivered a webinar for Ronald McDonald House Charity (RMHC) outlining the importance of the construction process for the building of RMHC family rooms. Craig has worked closely with RMHC to implement process and procedures to the development and rollout of these crucial family rooms.

As Shelagh Barrett of RMHC states, “Craig did a wonderful job at breaking down [these] complex projects and information into manageable steps; enabling the audience to wrap their heads around the task at hand and effectively collaborate.”

To learn more about Ronald McDonald House Charities of Canada please visit www.rmhc.ca