Smiths remodels Dayton, NV Store

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storewanderer
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Smiths remodels Dayton, NV Store

Post by storewanderer »

I don't know what was wrong with the prior interior in this late 90s store with no competition, but, okay. http://s196.photobucket.com/albums/aa11 ... 50%20East/

Meanwhile, no remodel in sight for http://s196.photobucket.com/albums/aa11 ... %20Baring/ which actually doesn't look so bad when you are in there shopping, but this one that is actually a couple years newer is very run down due to ongoing poor upkeep http://s196.photobucket.com/albums/aa11 ... %20Street/
Alpha8472
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Re: Smiths remodels Dayton, NV Store

Post by Alpha8472 »

Who knows what is the priority when it comes to remodels. Maybe it is based on what the store manager recommends. One manager could complain that the store is rundown and a hazard, while another would not be as vocal.

I can see that the decor is sort of like the next version of the decor seen in many Ralphs stores. The floor looks like it is polished concrete. Ralphs stores used to have such nice floors. The reason that they used polished concrete is that it saves a tremendous amount of money since they don't have to use chemicals to clean the floors. I think that the concrete floor looks worse than before. The walls are nice and upscale looking, while the floor looks like a warehouse floor.
Kroger472
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Re: Smiths remodels Dayton, NV Store

Post by Kroger472 »

Warehouse floors and the cursive Decor is a semi-standard Kroger feature now, on new builds the concrete floor is standard. The remodels generally receive HUGE :shock: tiles. As for how they decide when to do a remodel, you're right the store managers ask for it and the higher ups drag their feet for a while and only sometimes grant it timely. Depends also on how many stores the division has been allotted to receive remodels in a given year.
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Re: Smiths remodels Dayton, NV Store

Post by klkla »

Alpha8472 wrote:Who knows what is the priority when it comes to remodels. Maybe it is based on what the store manager recommends. One manager could complain that the store is rundown and a hazard, while another would not be as vocal.
The store manager has no input into whether a store is remodeled. I worked in retail management for sixteen years before opening my own company and have a little experience in this area.

Every company determines a capital expenditure budget every year. This is the amount of money they will spend to increase sales and profits by building new stores, completing remodels, building warehouses, e.t.c...

The corporate management will make proposals and complete a study which will determing the ROI (Return on investment) for any capital expenditure. After all the proposals are completed they are ranked from highest to lowest return on investment. So lets say you have a Cap Ex budget of $200 million you take the top ranking $200 million worth of projects and schedule them for completition.

So in this case, Kroger corporate management would have done a study to show that this remodel would increase sales and profits enough to generate a good return on investment. An older store that is not remodeled would not be remodeled until the ROI is greater than other projects being proposed.
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Re: Smiths remodels Dayton, NV Store

Post by storewanderer »

Dayton is interesting in that there are some other retailers there (Dollar Tree, Kragen, and some smaller stuff), but the grocers and drugstores have ignored it. Smiths has been there for over 10 years now. The demographic is middle-lower class to lower class, with just a bit of middle mixed in. Dayton also draws customers from other areas such as Stagecoach and Silver Springs with no major retailers at all beyond convenience stores.

So I don't know exactly what Smiths is trying to achieve with this remodel of a store that looked decent already that has little competition. This is clearly their bread-winning store in Northern Nevada (Reno-Lemmon Drive also does very well again an area without much competition and questionable demographics), but, it seems the money could be better spent elsewhere.
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Re: Smiths remodels Dayton, NV Store

Post by J-Mac »

Perhaps this is one of those cases where the pure mathematical calculation of ROI overlooks some of the reality "on the ground." The mathematics, demographics and other models suggest a remodel will increase business here, but a quick look at the neighborhood in person suggests something else.

The project gets done anyway, because the analysis is done so far away from the property by people totally disconnected from it.
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Re: Smiths remodels Dayton, NV Store

Post by klkla »

J-Mac wrote:The project gets done anyway, because the analysis is done so far away from the property by people totally disconnected from it.
That could very well be the case. Having worked for a while in the real estate department for a large retailer I can tell you, however, that the people making these decisions after to answer to the actual ROI when the project is complete and if their performance is not satisfactory they will get canned.

Sometimes there are extenuating circumstances with remodels and new stores that are not visible to outsiders or even the store level management itself. For instance, local governments offer incentives such as tax breaks or credits for businesses to invest in the community through capital expenditures. For instance a tax credit may have been available in Dayton but because they already had an existing store there the only way to make the capital investment was with a remodel of the existing store even though the remodel itself may not make sense to people looking at the situation from the outside (I'm not saying this is the situation, only giving another possibe explanation).
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Re: Smiths remodels Dayton, NV Store

Post by storewanderer »

I went back today and took some photos of the completely remodeled store. Interesting looking non food area. http://s196.photobucket.com/albums/aa11 ... 50%20East/
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Re: Smiths remodels Dayton, NV Store

Post by Alpha8472 »

It looks like the store has different decor for the drug store side. It is sort of like a Albertsons Sav-On combo. The drug store side seems to have a lot of wood on the shelves and wood decorations hanging from the ceiling. Usually, the wooden decorations hanging from the ceiling are found over the wine racks at supermarkets. I also see a lot of spotlights shining on the products. Usually, only Produce and Wine gets spotlights.
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