Without ongoing analysis, retail leasing can feel like a gamble. You may find yourself wondering if you truly do understand the fine print of your lease. With so much of the success of your storefronts being tied to their locations, you need to leverage data analytics to optimize your lease management.
Data analytics will allow you to reconcile incorrect charges from your landlord, identify ways you can make your current holdings more cost-effective and help you build your site selection strategy. Let’s look in-depth at the ways data analytics can improve your lease management.
Boost Profitability Through Cost Savings
As you gather your data points, it is worthwhile to review your statements against your lease. This is the fastest way to uncover incorrect charges from your landlord. By working through the dense legal language of your leases, you may discover contradictions, inconsistencies and anomalies that are costing you money.
Reconciling these issues not only improves the quality of your leasing database but will return dollars to your bottom line. As you are reviewing your lease information, you can use the data you collect to negotiate stronger terms as well as gain a better understanding of the rental market as you consider adding new locations.
Improve Storewide Efficiency
Utilities are a significant operational cost that is unavoidable in retail. Data analytics enables you to identify opportunities to reduce costs to a more predictable figure each month. This analysis may lead you to consider negotiating for eco-friendly plumbing and lighting fixtures or to move to a location that already offers them.
You can apply this same data analysis to your inventory. Doing so may reveal more efficient ordering and stocking strategies that may offer you the chance to save on stocking space, reducing your square footage needs.
Location, Location, Location
Data analysis can help you predict a location’s performance before you even stock the shelves. You can discern foot traffic patterns and complete demographic analysis so you can optimize your store’s location. You can even go as far as analyzing your competitor’s locations so that you can avoid them or directly compete.
You can also employ these principles in your existing locations to discover which are underperforming and gain some insights on whether they can be brought into line with your other locations, or if moving or even closing would be a better course of action.
Your Data Analysis Partner
Scribcor is here to help you gain valuable insights from your leasing data. We offer full lease management solutions and software-agnostic database consulting to empower your retail empire. Reach out today to learn how we can transform your real estate portfolio management.