{"id":27076,"date":"2019-06-21T11:50:22","date_gmt":"2019-06-21T03:50:22","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=27076"},"modified":"2022-06-13T17:07:15","modified_gmt":"2022-06-13T09:07:15","slug":"5-signs-its-time-to-move-your-retail-shop-elsewhere","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/5-signs-its-time-to-move-your-retail-shop-elsewhere\/","title":{"rendered":"5 Signs It’s Time to Move Your Retail Shop Elsewhere"},"content":{"rendered":"
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If you want to see an abusive relationship, look no further than the ties between some landlords and their retail clients. It takes some courage to know when it’s time to move on, and just do it:<\/p>\n

1. Know how much foot traffic you need, so you can tell when it becomes unsustainable<\/h3>\n

Even before you start running your business, you should work out the minimum sales you need – and consequently, the amount of foot traffic that entails. Here’s a rough example:<\/p>\n

Say you need a minimum of $50,000 in sales per week, and you’re looking at purchases of around $60 per customer. That’s about 834 buying customers per week, or roughly 120 buying customers per day.<\/p>\n

Now, assuming you have a conversion rate (the number of walk-ins you convince to buy something) of about 40 per cent*, you would need daily foot traffic of about 300 people in the store. Alternatively, you can look at it on a weekly basis, as the weekends tend to bring in more people than weekdays e.g. foot traffic of 2,100 per week.<\/p>\n

(You can also try to improve conversion rates, but that’s easier said than done. Who isn’t\u00a0already<\/em> trying as hard as they can to sell?)<\/p>\n

If foot traffic fails to meet this quota for three or more consecutive months, it may be time to start scouting around for another location. Some seasonal drops in foot traffic – often between March to May on the local scene – are to be expected; but you should be alarmed if the numbers keep falling beyond that.<\/p>\n

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Work out the minimum sales you need and the amount of foot traffic that entails.<\/figcaption><\/figure>\n

*We do not have available statistics in Singapore, but the estimated conversion rate for most retail stores in general is about 20 to 40 per cent. This means only about a third of your foot traffic<\/a> tends to convert to actual sales.<\/em><\/p>\n

2. Ask your customers<\/h3>\n

It should be obvious, but a lot of retailers just plain forget to ask their customers about the location. Some of the questions you want answered are:<\/p>\n