An oversized retail store does more harm than good

Several of our Hyprop Investments Limited stores, including Game, Edgars, and Pick n Pay, are deciding to rightsize. Rightsizing differs from downsizing in that its focus is on driving efficiency and productivity improvements rather than simply cutting costs. Rightsizing also assists with improving shop trading density, which is a key performance metric.

Bloated stores result in higher utility and rent costs, staff and merchandising costs, and cleaning and operational expenses. But they harm the customer experience more than that, as it’s much more difficult to merchandise an oversized shop and create a quality retail experience.

From a tenant’s perspective, rightsizing these stores is a good decision that will save significant costs and ensure that these tenants continue to operate under our portfolio for years to come.

From a landlord’s perspective, rightsizing allows fallow space to be re-configured to introduce new and exciting retailers, which assists with the mall’s repositioning.