If you’re going to shrink your footprint, make sure you have a plan. “Understand why you’re doing it; understand why it’s better to do than not to do it,” says John Krubski, a retail marketing consultant with ITLC Insights. The decision “will inevitably have consequences lasting beyond the immediate circumstances,” he says.
There are smart ways to cut your rent by half—or more. Most retailers should be exploring them, especially if they have large warehouses or other space dedicated to storing inventory, says Bob Phibbs, a retail consultant at Retail Doctor. “Just-in-time delivery is now available from most anyone,” he says. “Many retailers are paying for space they simply don’t need.”