Managing a store relocation project
This case study describes the relocation in 1994 of the Marks & Spencer store in Kendal. The situation
presented is a relatively unusual example of store development for the company – not just because it involves
relocation, but because it involves the acquisition and refitting of an existing supermarket. Store
development programme involving expansion and modernisation. Store development projects not only
include the building of new stores on greenfield sites, but also modernising and extending the footage of
existing stores, and relocating others to more appropriate sites.
Relocation projects are driven by the desire to improve Marks & Spencer’s profitability, by enhancing either
the convenience of a store’s location. When relocating, a considerable amount of time, resources, research,
and planning and management effort will be invested. Many individuals and departments within the business
will be involved and a number of external organisations will contribute - all working to achieve the
company’s objectives. Marks & Spencer is six-months into the schedule for a store relocation project in
Kendal, Cumbria. Three key managers closely involved in the scheme Paul Mellor is the Kendal Store
Manager, Mike Peterson is Technical Co-Coordinator for Construction Services in the Store Development
Group and Katy Bull is Store Planner for the project. Their comments provide an insight into the reasons for
the relocation, how the project is progressing and the tasks still to be carried out prior to the new store
opening.
Paul explains some of the background to the project. “Kendal is a busy market town in Cumbria on the
south-eastern edge of the Lake District National Park, which is a popular tourist area. The town is close to
the M6 motorway and about 25 miles north of Lancaster. The map shows our current store in Kendal at 18-
20 Stricklandgate. It’s a prime location in the High Street, where we are at the heart of shopping activity and
we pick up a lot of passing trade. However, there are a number of problems with the site. The selling space,
at 9000 sq. ft., is far too small to exploit the sales potential available in Kendal - the sales per square foot
performances we’re achieving clearly show we can support a far larger store. Mike explains his role in the
project. “Because the Kendal scheme is relatively small, I have been delegated much of the project
management responsibility on the construction side.
My job is to ensure all the necessary building and fitting-out work is completed on time, within the costs that
have been agreed and to the right specification.” at explains her role as Store Planner for the project. “We
focus on ensuring new stores are designed in a way that meets the commercial requirements of the business,
maximize sales in an attractive store environment and ensure stores are operationally efficient to minimize
costs. I liaise with all departments that have an interest in the design, building and operation of the store. I
must ensure that the final layout meets the needs of the Store Manager, Divisional Management and also the
Buying Groups - they are my clients. Mike has been closely involved in the planning activities at Head
Office and he picks up the story. “At the start of September we then went through to the preparatory
planning stage, during which the scheme was subjected to progressively more and more detailed examination
and had to pass through a series of Project Boards before it could gain approval to proceed to the Capital
Evaluation Committee (CEC) in early November. Our Architects, Corporate Designers and Store Planner
produced detailed plans and layouts, even down to walkways and the location and size of the main sales
departments. “After the initial feasibility research in August, we went into negotiations with Fine-Food and
we had to do the background planning in strict confidence. “The project was approved by the Capital
Evaluation Committee within a couple of weeks.
All the research showed the Kendal scheme would achieve the required returns, so the Directors gave us the
okay on the expenditure without a problem. “The main objective for the building contractor will be to open
as soon as possible. We’ll confirm the exact opening date once we’ve been on site a few weeks and we’ll
have progress meetings every 4 weeks anyway to make sure things is going to plan.” “In addition to all the
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fitting-out work, we’ve also got to get all the major equipment commissioned, of course, which means
checking and testing the sprinklers, air conditioning, refrigeration plant, alarms and so on, to ensure
everything works the way it should. The store relocation at Kendal will have a positive impact upon Kendal
as a town. No trade will lose and the dressing of the store will be managed without disruption. A year after
the opening of the new store there has been considerable investment in the town’s retail provision, with new
retail developments close to the Marks & Spencer site. The new store will help to provide this change of
focus for the town.
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