Fordham -How effective decision-making is within the IT department - Analysis...
Challenges faced by Foreign retailers when opening stores in the USA
1. NRF Presentation Bullet points January 2011 (ver2)
SOME OF THE CHALLENGES FACING FOREIGN RETAILERS OPENING IN THE USA
1. Real Estate/Property/Broker
Trust your Broker.
Integrity
Objectivity
Understand possible conflicts
(In most transactions your broker is compensated by the Landlord!)
Be aggressive in negotiating economics AND landlord work
Landlord Capital contribution, Rental economics and rent commencement dates are all negotiable
Pay close attention to Lease exhibits.
Understand ALL possible hidden charges in the lease
2. 2 Store Design
Survey before you sign lease
Invest in a thorough field survey/Know the details of the space you are leasing.
This will mitigate expensive and potentially time consuming unknowns
Allows anything discovered to become negotiable
Plans must synchronize with lease exhibits
Plans must be detailed and accurate
Know your permit/approval time lines
3. 3 Contractors/Vendors
Building in the USA is often an adversarial process.
While the market place will determine the contract cost a successful budget can only be achieved if the
“variables” are managed correctly
Competitively bid all components, Lighting, Flooring, IT, Signage, fixturing etc..
Be proactive with requests for additional money from contractors.
Never pay for work not completed
Be diligent with collection of Lien releases.
(Failure to comply with this requirement CAN DOUBLE the cost to build)
4. Summary
The Property Broker, attorney, Architect and engineers need to be managed and on same page.
Otherwise each will have their own version of the Clients goal.
Do your homework before signing a lease.
A bad RE decision can kill a new concept.
Hire experienced professionals with integrity
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