With multiplicity and proliferation of Retailers and Brand Owners, the demand for Retail Space has seen unprecedented pressure in all markets be it in established high streets. This has led to the multiple challenges of obtaining the right space with the right size at the right cost. Even the MBO’S are emphasizing on good deal of commercial to increase their profitability.
Due to entrance of organized retail, small unorganized retailer’s business is getting deteriorated. With impact to this the dependability for business and revenue generation automatically falled on big retailers and they are now taking undue advantages from the company.
IMPLICATIONS FOR MFL
There is a tremendous pressure on MFL to acquire retail space, as this is the most reliable and growing channel. Business through other channels like multi brand outlets and departmental stores are profitable in the short term.
Due to this the focus on MBO business has been shifted,
since no financial expense is required in MBO business and it can equally contribute towards profitably so equal importance to be given to it.
AFS business model is can be a boost so it should be continued in the future in context of business generation.
MFL needs to maintain its discipline while acquiring space in this chaos. Establishing processes in an industry that is largely unorganised is a challenge for the role holder.
The major challenges involve internally and externally in terms of:
• Launch of current SIS counter
• Shrinkage of MBO business
• No penetration in small budget market
• Restricted commercials are proving as a hindrance in SIS business
• Ensure to maintain a motivated & result oriented team