Our store has been notified about a remodel. Business is poor and store inventory is way down due to some supply chain issue. Anyone think remodeling a store with little inventory will enhance sales? Given market conditions will we actually spend money to remodel stores that no one visits?
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If your lease is up, building improvements are usually part of the negotiations. They get the LL to cover costs as part of the agreement to signing a new lease. This cost usually applies to only to "building improvements" but i am sure things are more fluid now with leverage with BBB closing so many stores. The LL writes it off for the security of another 5 or 10 year lease. This amount is somewhere in the ballpark of $250,000.
Probably has to do with the lease. I don’t think the lease would require an interior remodel, however they could have something specified for the store front to be upgraded. Most likely the lease is low and that allows your store to be profitable, or it would cost more to break the lease agreement early. At least the remodel will be easier with less merch to move around.
The remodel may be something they have to do based on the lease agreement. They may only have two choices, cancel the lease or remodel. Knowing how this company is, most likely remodeling is the cheaper option than canceling the lease agreement.