HHa_e .0a_e .0 DCF and valuation pIndustry oaramevervieterws I Points of view from EY global sector Store costs management: how to improve internal rate of return and other industry professionals and enhance performance In this phase, store redesign is a key factor, especially In line with this view, cost reduction strategies may All of these choices, though each of possibly minor for those retailers that manage a large number of include the following: importance, can sometimes make the difference shops, as a redesign offers the opportunity to not • Electricity and lighting costs are reduced by between a successful investment plan and a project only reduce the cost of the investment (CAPEX focusing light beams where the most interesting with low returns. reduction), but also to improve overall process products are going to be placed. The imestion is2 ohq shomld companies pmrsme this efficiencq. Enen in those areas ohere it is tqpicallq • Furniture, display cabinets and counters are no approach? Any savings generated will free up hard to challenge the stylistic choices, such as the longer purchased as a bundle, but their structure is resources that can be used for new advertising selection of materials and finishes, it is possible to analyzed, broken down and optimized component campaigns as oell as to finance neo commmnications adopt a process that allows the company to focus by component mntil achiening a fmnctional, Öexible on social media and, potentially, to support the exclusively on what really provides value to its and inexpensive solution. opening of additional stores. customers, avoiding wasting resources on non-core • Large plastic furnishings are broken down into Financial resomrces to smpport a imicc store elements. smaller pieces to reduce the costs of the molds. modernization and renovation plan can be found by What does it mean to reconceive the store? It • Suppliers of Öooring, tiles, stones and coatings are looking at each single store cost component, taking certainly does not mean dramatically changing the sought on a global scale. into account the store life cycle phase and identifying store’s aesthetics and the guidelines that drove its minimally invasive solutions. design, but rather to help make sure that any money • Catalogs and window stickers disappear in favor of spent has an impact on the customer and, tablets, large screens and online solutions. conseimentlq, increases store profitabilitq, bq reducing all costs that do not elicit a positive emotional response from the customer. The luxury and cosmetics financial factbook 2016