Supporting Effective Store Decommissioning

In the current economic landscape, numerous retail and restaurant locations are facing closure due to a variety of factors, including economic downturns and increased operational costs. Major brands like Walgreens and many restaurants, especially in states like California with new minimum wage laws, are being forced to shutter stores that are no longer profitable. At DAVACO, we specialize in providing comprehensive decommissioning services to help businesses navigate these challenging transitions.?

?The Current Climate: Store Closures and Economic Pressures?

Walgreens has announced plans for significant store closures due to economic pressures and changing market dynamics. According to Chain Store Age , Walgreens is cutting its profit guidance for Q3 and closing numerous stores to streamline operations. This trend is not isolated to Walgreens; many brands are experiencing similar challenges, leading to widespread store decommissionings across various industries.?

Restaurants in California are particularly hard hit by the new $20/hour minimum wage increase, which is making it difficult for many establishments to remain profitable. For example, Rubio’s Coastal Grill recently shut down 48 restaurants in California due to rising business costs, as reported by the Los Angeles Times . This situation is echoed by other major restaurant chains facing closures nationwide, including TGI Fridays, Applebee's, Red Lobster, Denny's, and Boston Market as detailed by Forbes . Reasons cited for these restaurant closures range from a variety of financial troubles including inflation, to underperformance, and even shifts in customer preferences.??

DAVACO's Role in Store Decommissionings?

Whatever the reason a store may be shuttering, DAVACO offers a range of services to support businesses through store closures and relocations:?

1. Comprehensive Decommissioning Services: We ensure that closed units are brought back to leasehold requirements, making the transition smooth and compliant with property agreements. Our expertise ensures that all necessary steps are taken to decommission a site effectively, minimizing disruption and potential liabilities.?

2. Relocation and Performance Optimization: For units that need to be relocated to more profitable sites, DAVACO provides relocation services including deinstallation of signage and FF&E to be reused, returning existing location to leasehold requirements, transporting reusable signage and FF&E to new location and installing along with any new FF&E. We also provide general construction and even merchandising services to get the store open as quickly as possible.?

3. Turnkey Technology Upgrades: To help units operate more efficiently and profitably, we provide turnkey technology upgrade programs. From POS systems to inventory management solutions, our upgrades streamline operations and improve overall efficiency....

Read More on our website to learn how DAVACO can help support your business through store decommissionings and other transitions.