Re-Inventing Retail

From the Co-Founders of The Retail Owners Institute.
Tips | Tactics | Insights on the Business of Retailing.

New "Exit Strategy" Concept Bookmark

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"Retirement" looming? Ready to reduce hassles and worries, but not really ready for a rocking chair? 

Here’s a variation on a “mixed use development” that could offer a great transition plan to retailers.

We just heard about a new kind of “mixed-use development” (you know, retail shops on the ground floor, residences up above.) Some of the new townhouses being sold in a planned resort community come with a first-floor retail shop. The owner of the townhouse owns the shop space as well!

The retail space and a powder room on the ground floor total 753 square feet.

The two upper floors provide 1,935 square feet of living space (3 bedrooms, 2.5 baths).

A carport in the back contains the stairway leading to the living space.

A balcony on the second level overhangs the retail entrance on the street.

The townhouse owner can then choose to operate a shop in “their” space, or, be a landlord, and rent it out to another retailer.

While a 3-bedroom condo might not be your idea of “downsizing”, the opportunity to also own the retail space offers some intriguing opportunities.

Maybe you still want to run a small shop (perhaps a smaller version of what you’ve been doing for many years.)

The internet could balance out the seasonality of being in a resort community.

Or, you rent out the space to another retailer, and receive the rental income.

In any event, you still have a place to live, plus equity in the property, and could benefit from any appreciation in its value over time.

As we thought about it more, this may be a concept that already is happening in a variety of settings other than a resort community.

Perhaps a college town?

Or, in one of the “lifestyle centers” that are being built/redeveloped in suburban communities?

Or, maybe even in the town where you already live?

We think it's a fun new wrinkle on an exit strategy, an issue facing many owners. All part of “making the business work for you!”

Might it be "an exit strategy" to look into?

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About The Co-Founders

Pat Johnson and Dick Outcalt, The Co-Founders of The Retail Owners Institute®, have been called "The Zen masters of retail finance!"

Since 1999, they have been assembling  their proprietary content into a unique self-help website. The Retail Owners Institute is an unmatched resource that assists retailers worldwide with basic financial training, assistance and easy-to-use tools.

Their engaging and empowering how-to resources about the financial levers in retailing are informative, fun(!), and retailer-friendly. Their promise: "Everyone will 'get it'!"

Pat and Dick are recognized experts in strategic retailing. Working only as a team – Outcalt & Johnson: Retail Strategists, LLC – they have been consulting, publishing, and speaking professionally throughout North America since 1990.

They focus exclusively on retail, or wherever retail is involved. They work with CEOs, CFOs, boards and owners of retail operations, as well as manufacturers or wholesalers expanding into retail. And they also are Retail Turnaround Experts.

Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"