How much should I be spending on rent? Everyone knows the old saying about rent and retailing: “It’s all about location, location and location.” As relevant as this statement is today, the Internet has greatly impacted rent expense and has made its measurement somewhat convoluted. Your customers can now research virtually any product they want via the Internet, which leads directly to the key question: “How can I convince potential customers to come to my store to buy this product from me?”
The new retailing mantra is now: “It’s all about connection, connection and connection.”
Customer convenience is swiftly becoming the most important factor in addressing/answering the "How" question above; “convenience” to the customer has become the new version of "location." However, at what price does the rent prohibit the retailer from the connection that results from being in the right place at the right time with the right product to serve the right customer?
Watch this video to learn more about rent expense and what’s considered an appropriate amount for most retailers.