The “warehouse” stores are profitable. They drive strong revenue and have low operating cost. The problem is that they degrade the brand and they don’t grow. Sales at a warehouse stores remain stable for the most part. Existing customers who know about these stores will go to them, but new customers prefer to buy from newer, big box style stores, located on retail avenues.
The warehouse stores must simply be relocated to better retail streets. The objective is to retain existing customers while also driving new discovery and organic growth. The relocated “retail” stores should be located as close as possible to the warehouse stores, in strip malls, shopping plazas or roads with heavy traffic.