Concept Store
Company: Nomative
Date: Sept 2019 – Jan 2017
Location: Bilbao, Spain
Metodology: Scrum
Role: Project Manager
Team Size: 5
ABOUT
The Project
Scope: The Xmastore project aimed to ccreate and manage a temporary concept store in the Zubiarte shopping center (Bilbao) during the holiday season. The main goal was to provide a unique Christmast shopping experience by showcasing exclusive products and limited editions from recowned brands. An additional objective was to achieve a turnover of at least €20.000, establish collaboration with well-known influencers, involve more than 20 brands, and ensure high levels of satisfaction among both participating brands and customers.
Key Achivements
✅ Secure Business Model: The project implemented a secure business model by adopting a strategy of renting space to stores, minimizing the risk associated with the opening. The success of the project relied on securing the necessary brands to generate revenue before the store’s launch, ensuring greater financial security and reducing uncertainty.
✅ Revenue Generation: The project achieved a total revenue of +€23,000 during the store’s opening period.
✅ Return on Investment: Maximizing return on investment was a key achievement, with a total investment of only €2,000, covering space rental, painting materials, decoration, and furniture.
✅ Collaboration with Recognized Influencers: The project collaborated with well-known influencers such as @Soyunapringadalol and @Otovans to promote the store and attract a wider audience.
✅ Diverse Range of Brands: Successful collaborations were established with over 20 emerging brands, designers, and artists, enabling the store to offer a diverse selection of exclusive products.
✅ Sales of Varied Products: The store successfully sold a wide range of products, including socks, coats, accessories, and glasses, appealing to different customer segments.
✅ Brand Satisfaction: Brands involved in the project expressed contentment with the results and the visibility they gained through the concept store.
✅ Positive Impact on the Public: The project’s unique and memorable shopping experience resulted in positive feedback from customers, creating a positive impact on the public
RESOURCES
Resources Used
Financial Resources:
💰 Initial Investment
An initial investment of 2000 euros was allocated to cover the initial expenses of the project. This investment was utilized for renting the store space, purchasing materials and furniture, as well as covering initial marketing and promotional costs.
💼 Working Capital
Working capital was designated to cover operational expenses during the months of the concept store’s operation. This capital included personnel costs, product inventory, utility services, administrative expenses, and other recurring costs.
📢 Marketing and Advertising Expenses
Financial resources were allocated for marketing and advertising strategies, including promotional campaigns, social media initiatives, paid advertisements, and launch events. These expenses were crucial for introducing the new store and attracting customers.
🏗️ Remodeling and Refurbishment Costs
Funds were allocated for the remodeling and refurbishment of the store space, including painting, decoration, lighting, and other improvements necessary to create the desired ambiance.
💻 Technology and Equipment
Necessary technological equipment, such as point-of-sale systems, security equipment, and other technical devices, was acquired to facilitate the operation of the concept store.
⚠️ Contingencies and Reserves
A financial reserve was established to address possible unforeseen circumstances or contingencies that might arise during the project’s development.
Material Resources:
🏬 Physical Space of the Store
The cornerstone of Xmastore’s success lay in its physical space, meticulously designed to house the concept store. This encompassed:
🛍️ Exhibition and Sales Space
The heart of the operation, the exhibition and sales space, was secured through a rental agreement. This area was strategically chosen to optimize the store’s functionality.
🛋️ Furniture and Decoration
Meticulously selected furniture, shelves, display units, showcases, tables, chairs, and decorative elements were deployed to craft the desired ambiance and layout within the store.
🛠️ Construction and Renovation Materials
Adapting the commercial space to the unique needs of the concept store involved the use of construction materials and implementation of renovations. Activities included painting, lighting enhancements, flooring adjustments, and structural divisions.
🛒 Products
A curated selection of products, spanning a diverse array of fashion items, was managed to meet the preferences and aspirations of the brands represented in the store.
💻 Technical Equipment
Essential technical equipment, including cash registers, point-of-sale (POS) systems, computers, and electronic devices, were deployed for efficient store management and customer service.
📰 Marketing and Advertising Materials
Print and digital materials such as brochures, posters, banners, and other promotional items were produced to announce the store’s opening and attract a steady flow of customers.
📦 Packaging Elements
Materials for product packaging and shipping, including bags, boxes, labels, and other logistical components, were acquired to ensure a seamless and professional customer experience.
🧹 Other Supplies
Diverse supplies and materials essential for the daily operation of the store, including stationery, cleaning materials, consumables, and other resources, were procured to uphold operational efficiency and maintenance standards.
RISKS
Risk Assessment
01- Store Size
Identified Risk
Initially, a 300m2 space offered by the shopping center was considered, but a smaller space was chosen due to issues with the insurance company and to ensure a welcoming and realistic experience for the brands.
Approach
A detailed assessment of the pros and cons of each option was conducted. Consultations with the team took place, and a consensus was reached to opt for a smaller yet cozier and safer space.
Impact
The decision to choose a smaller space allowed for the timely opening of the store, avoiding issues with the insurer and creating a more inviting environment for both brands and customers. However, there was a loss of some exhibition space, necessitating optimization in the product layout.
02- Failure to Cover Expenses and Generate Revenue Before Opening
Identified Risk
Given that all agreements with brands were finalized before the opening, there was a potential risk of not generating enough revenue to cover the initial and operational expenses.
Approach
It was established as a criterion to open the store only if the expenses could be covered and revenue generated before the opening date. A rigorous financial control was maintained, and marketing and sales strategies were adjusted to achieve the financial goal before the opening day.
Impact
This measure ensured that the store had a solid financial foundation from the outset and avoided potential financial losses. The team worked intensively to ensure the financial goal was met, leading to the successful opening of the store.
03- Common Risks
Identified Risk
In addition to the risks mentioned earlier, other common risks in opening a concept store, such as delays in product delivery, technical issues, competition, and public acceptance, were managed.
Approach
Close communication with suppliers was maintained to ensure timely product delivery. Comprehensive testing was conducted on the point-of-sale system and other technical devices. Marketing strategies were implemented to stand out among competitors and generate interest in the target audience.
Impact
The effective management of these risks helped minimize the negative impact on the project’s development and outcomes. Delays and technical issues were promptly addressed, and marketing strategies successfully attracted customers to the store, resulting in sales and positive market acceptance.
04- Lack of Experience in the Industry
Identified Risk
Risk of unfamiliarity due to opening a concept store for the first time:
This risk pertains to the lack of previous experience in opening and managing a concept store, which could have led to unknown challenges and difficulties for the team. Below, we analyze how this risk was addressed and its impact on the project’s development and outcomes:
Approach
Research and Guidance: A thorough investigation into the operations of other concept stores and similar shops was conducted. Success cases were studied, and market references were sought. Additionally, advice was sought from experts and consultants with experience in the sector.
Team Training: Specific training was provided to the team to gain knowledge about the operation and best practices in concept stores. Each team member received the necessary information and tools to assume their roles and responsibilities effectively.
Impact
Continuous Learning: While the initial unfamiliarity presented challenges, the team quickly learned and adapted throughout the project. Each obstacle became an opportunity for improvement and gaining experience in managing a concept store.
Creativity and Innovation: The lack of prior experience allowed the team to explore creative and innovative approaches to address challenges. Experimentation and the pursuit of unique solutions were encouraged, contributing to differentiating Xmastore in the market.
Flexibility: By adopting an agile approach, the team could respond rapidly to difficulties and adjust the strategy based on results and learnings.
Scrum
💡 Idea Development
During this initial phase, the team conducted brainstorming sessions and workshops to define the store’s concept. We established a short sprint of one or two weeks to identify and prioritize key features of the concept. At the end of the sprint, we had a Product Backlog with the main ideas we wanted to develop.
The Product Backlog in the Xmastore project was a dynamic and prioritized list of all features, requirements, and tasks that needed addressing during the development of the concept store. As new ideas were identified or priorities shifted, the Product Backlog was updated to reflect changes and adjust the project’s direction.
As the project progressed, during each execution sprint, decisions were made, and adjustments were implemented in the Product Backlog based on team feedback and outcomes. Some features and tasks were added, removed, or rearranged to align with changing needs and emerging priorities.
🔍 Initiation and validation
In this stage, we planned a sprint to work on concept validation and ensure its viability. Activities such as interviews with potential brands, investors, and prospective clients were included. The feedback obtained during this sprint was crucial for making adjustments and improvements to the concept before moving forward.
🚀 Execution
Once the concept was validated, we planned a series of sprints for project execution. Each sprint had a duration of two weeks. During each sprint, the team focused on specific tasks such as designing and constructing the space, selecting and negotiating with brands, implementing the marketing strategy, among others. At the end of each sprint, we reviewed progress and adjusted the backlog based on changing priorities and newly identified needs.
📊 Project Closure and Results Analysis
As we approached the opening date, we planned a final sprint for the last preparations and details. During this sprint, performance tests, simulations with customers, and final adjustments were carried out to ensure everything was ready for the opening. Additionally, at this stage, the team prepared a final report to assess the performance and results achieved compared to the initially set objectives.
📝 Learning Assessment
After the opening, we organized a retrospective sprint to analyze the results and learnings obtained throughout the project. We reviewed the successes and challenges encountered, identified practices that worked well, and those that could be improved in future projects. The insights gained during this sprint were documented to apply them in future projects and continuously enhance our processes.
Performance Evaluation
Deadline Compliance
In general, the project adhered to the established deadlines in the schedule. During the planning phase, realistic timeframes were allocated for each stage, considering the necessary tasks and activities. The use of the Scrum methodology with sprints allowed for effective time management and quick adaptation to changes and challenges. While there were some minor adjustments to the schedule due to unforeseen circumstances, the pace was maintained, and the concept store was opened within the anticipated timeframe.
Initially, a 300m2 space offered by the shopping center was considered, but a smaller space was chosen due to issues with the insurance company and to ensure a welcoming and realistic experience for the brands.
Budget Compliance
The project was executed within the initial budget of 2000 euros. Careful financial management was implemented, maintaining constant expense control and always seeking to optimize available resources. The focus on generating revenue before the opening was key to ensuring that the budget remained under control and that the project was financially viable.
Quality
The team made an effort to maintain high-quality standards at every stage of the project. From defining the concept to selecting brands and designing the store, the aim was to provide a high-quality experience for customers. Special attention was given to details, both in the visual aspect of the store and in customer service and product presentation. Additionally, thorough testing was conducted to ensure the proper functioning of the point-of-sale system and other technical aspects.
Key Takeaways
👑 Crowning the customer
During this initial phase, the team conducted brainstorming sessions and workshops to define the store’s concept. We established a short sprint of one or two weeks to identify and prioritize key features of the concept. At the end of the sprint, we had a Product Backlog with the main ideas we wanted to develop.
The Product Backlog in the Xmastore project was a dynamic and prioritized list of all features, requirements, and tasks that needed addressing during the development of the concept store. As new ideas were identified or priorities shifted, the Product Backlog was updated to reflect changes and adjust the project’s direction.
As the project progressed, during each execution sprint, decisions were made, and adjustments were implemented in the Product Backlog based on team feedback and outcomes. Some features and tasks were added, removed, or rearranged to align with changing needs and emerging priorities.
Concept Store
the project
Scope: The Xmastore project aimed to ccreate and manage a temporary concept store in the Zubiarte shopping center (Bilbao) during the holiday season. The main goal was to provide a unique Christmast shopping experience by showcasing exclusive products and limited editions from recowned brands. An additional objective was to achieve a turnover of at least €20.000, establish collaboration with well-known influencers, involve more than 20 brands, and ensure high levels of satisfaction among both participating brands and customers.
Key Achivements
results
Secure Business Model: The project implemented a secure business model by adopting a strategy of renting space to stores, minimizing the risk associated with the opening. The success of the project relied on securing the necessary brands to generate revenue before the store’s launch, ensuring greater financial security and reducing uncertainty.
Revenue Generation: The project achieved a total revenue of +€23,000 during the store’s opening period.
Return on Investment: Maximizing return on investment was a key achievement, with a total investment of only €2,000, covering space rental, painting materials, decoration, and furniture.
Collaboration with Recognized Influencers: The project collaborated with well-known influencers such as @Soyunapringadalol and @Otovans to promote the store and attract a wider audience.
Diverse Range of Brands: Successful collaborations were established with over 20 emerging brands, designers, and artists, enabling the store to offer a diverse selection of exclusive products.
Sales of Varied Products: The store successfully sold a wide range of products, including socks, coats, accessories, and glasses, appealing to different customer segments.
Brand Satisfaction: Brands involved in the project expressed contentment with the results and the visibility they gained through the concept store.
Positive Impact on the Public: The project’s unique and memorable shopping experience resulted in positive feedback from customers, creating a positive impact on the public
Core team
The project involved a team of passionate entrepreneurs dedicated to delivering an exceptional Christmas experience.
Project Manager
- Define the vision and scope of the project.
- Project planning and management.
- Coordination and communication.
- Risk and challenge management.
- Quality control.
- Evaluation and learning.
- Project representation to stakeholders.
Financial Manager
- Financial planning.
- Management of financial resources.
- Financial analysis.
- Financial negotiation and agreements.
- Financial forecasting.
- Compliance and financial reporting.
- Risk assessment.
- Collaboration with the team to ensure strategies align with overall objectives.
Communication Leader
- Development and execution of comprehensive communication strategy.
- Brand image management.
- Public relations.
Internal communication. - Marketing plan.
- Results measurement.
- Influencer campaigns.
Staff Team
- Customer service.
- Sales.
- Inventory management.
- Store organization and presentation.
- Cash handling and payments.
- Problem-solving.
- Team communication.
- In-store experience
- Follow-up and feedback.
Customer leader
- Customer experience management.
- Customer understanding.
- Problem-solving and resolution.
- Coordination with sales, marketing, design, and operations teams.
- Development of retention strategies.
- Analysis of satisfaction metrics.
- Staff training.
- Innovation and continuous improvement.
resources Used
Financial Resources
Initial Investment
An initial investment of 2000 euros was allocated to cover the initial expenses of the project. This investment was utilized for renting the store space, purchasing materials and furniture, as well as covering initial marketing and promotional costs.
Working Capital
Working capital was designated to cover operational expenses during the months of the concept store’s operation. This capital included personnel costs, product inventory, utility services, administrative expenses, and other recurring costs.
Marketing and Advertising Expenses
Financial resources were allocated for marketing and advertising strategies, including promotional campaigns, social media initiatives, paid advertisements, and launch events. These expenses were crucial for introducing the new store and attracting customers.
Remodeling and Refurbishment Costs
Funds were allocated for the remodeling and refurbishment of the store space, including painting, decoration, lighting, and other improvements necessary to create the desired ambiance.
Technology and Equipment
Necessary technological equipment, such as point-of-sale systems, security equipment, and other technical devices, was acquired to facilitate the operation of the concept store.
Contingencies and Reserves
A financial reserve was established to address possible unforeseen circumstances or contingencies that might arise during the project’s development.
Overall, the proper utilization and effective management of these financial resources were fundamental in ensuring the economic viability of the project and achieving a successful opening of Xmastore. The appropriate allocation of resources allowed for covering all necessary aspects for the launch and initial operation of the store, ensuring that established financial objectives were met.
recursos Materiales
Physical Space of the Store
The cornerstone of Xmastore’s success lay in its physical space, meticulously designed to house the concept store. This encompassed:
Exhibition and Sales Space
The heart of the operation, the exhibition and sales space, was secured through a rental agreement. This area was strategically chosen to optimize the store’s functionality.
Furniture and Decoration
Meticulously selected furniture, shelves, display units, showcases, tables, chairs, and decorative elements were deployed to craft the desired ambiance and layout within the store.
Construction and Renovation Materials
Adapting the commercial space to the unique needs of the concept store involved the use of construction materials and implementation of renovations. Activities included painting, lighting enhancements, flooring adjustments, and structural divisions.
Products
A curated selection of products, spanning a diverse array of fashion items, was managed to meet the preferences and aspirations of the brands represented in the store.
Technical Equipment
Essential technical equipment, including cash registers, point-of-sale (POS) systems, computers, and electronic devices, were deployed for efficient store management and customer service.
Marketing and Advertising Materials
Print and digital materials such as brochures, posters, banners, and other promotional items were produced to announce the store’s opening and attract a steady flow of customers.
Packaging Elements
Materials for product packaging and shipping, including bags, boxes, labels, and other logistical components, were acquired to ensure a seamless and professional customer experience.
Other Supplies
Diverse supplies and materials essential for the daily operation of the store, including stationery, cleaning materials, consumables, and other resources, were procured to uphold operational efficiency and maintenance standards.
Risk Assessment
1. Store size
Identified Risk
Initially, a 300m2 space offered by the shopping center was considered, but a smaller space was chosen due to issues with the insurance company and to ensure a welcoming and realistic experience for the brands.
Approach
A detailed assessment of the pros and cons of each option was conducted. Consultations with the team took place, and a consensus was reached to opt for a smaller yet cozier and safer space.
Impact
The decision to choose a smaller space allowed for the timely opening of the store, avoiding issues with the insurer and creating a more inviting environment for both brands and customers. However, there was a loss of some exhibition space, necessitating optimization in the product layout.
2. Failure to Cover Expenses and Generate Revenue Before Opening
Identified Risk
Given that all agreements with brands were finalized before the opening, there was a potential risk of not generating enough revenue to cover the initial and operational expenses.
Approach
It was established as a criterion to open the store only if the expenses could be covered and revenue generated before the opening date. A rigorous financial control was maintained, and marketing and sales strategies were adjusted to achieve the financial goal before the opening day.
Impact
This measure ensured that the store had a solid financial foundation from the outset and avoided potential financial losses. The team worked intensively to ensure the financial goal was met, leading to the successful opening of the store.
3. Common Risks
Identified Risk
In addition to the risks mentioned earlier, other common risks in opening a concept store, such as delays in product delivery, technical issues, competition, and public acceptance, were managed.
Approach
Close communication with suppliers was maintained to ensure timely product delivery. Comprehensive testing was conducted on the point-of-sale system and other technical devices. Marketing strategies were implemented to stand out among competitors and generate interest in the target audience.
Impact
The effective management of these risks helped minimize the negative impact on the project’s development and outcomes. Delays and technical issues were promptly addressed, and marketing strategies successfully attracted customers to the store, resulting in sales and positive market acceptance.
4. Lack of Experience in the Industry
Identified Risk
Risk of unfamiliarity due to opening a concept store for the first time:
This risk pertains to the lack of previous experience in opening and managing a concept store, which could have led to unknown challenges and difficulties for the team. Below, we analyze how this risk was addressed and its impact on the project’s development and outcomes:
Approach
Research and Guidance: A thorough investigation into the operations of other concept stores and similar shops was conducted. Success cases were studied, and market references were sought. Additionally, advice was sought from experts and consultants with experience in the sector.
Team Training: Specific training was provided to the team to gain knowledge about the operation and best practices in concept stores. Each team member received the necessary information and tools to assume their roles and responsibilities effectively.
Impact
Continuous Learning: While the initial unfamiliarity presented challenges, the team quickly learned and adapted throughout the project. Each obstacle became an opportunity for improvement and gaining experience in managing a concept store.
Creativity and Innovation: The lack of prior experience allowed the team to explore creative and innovative approaches to address challenges. Experimentation and the pursuit of unique solutions were encouraged, contributing to differentiating Xmastore in the market.
Flexibility: By adopting an agile approach, the team could respond rapidly to difficulties and adjust the strategy based on results and learnings.
Overall, the risk of unfamiliarity due to opening a concept store for the first time had a positive impact on the project’s development. The team’s learning mindset and adaptability enabled them to overcome challenges and create a successful experience for customers. The initial lack of experience turned into an opportunity for creativity and innovation, contributing to Xmastore’s uniqueness and success in the market.
Scrum
To manage the project, we relied on the principles and practices of Scrum. In the project context, the Scrum approach allowed us to work in short iterations and incremental deliveries, prioritize tasks based on their value, and quickly adapt to changes and challenges that arose during the project’s development. Additionally, daily stand-up meetings, the use of Kanban boards, and retrospective reviews at the end of each iteration were key features of the Scrum implementation in the project.
💡 Idea Development
During this initial phase, the team conducted brainstorming sessions and workshops to define the store’s concept. We established a short sprint of one or two weeks to identify and prioritize key features of the concept. At the end of the sprint, we had a Product Backlog with the main ideas we wanted to develop.
The Product Backlog in the Xmastore project was a dynamic and prioritized list of all features, requirements, and tasks that needed addressing during the development of the concept store. As new ideas were identified or priorities shifted, the Product Backlog was updated to reflect changes and adjust the project’s direction.
As the project progressed, during each execution sprint, decisions were made, and adjustments were implemented in the Product Backlog based on team feedback and outcomes. Some features and tasks were added, removed, or rearranged to align with changing needs and emerging priorities.
🔍 Initiation and validation
🚀 Execution
Once the concept was validated, we planned a series of sprints for project execution. Each sprint had a duration of two weeks. During each sprint, the team focused on specific tasks such as designing and constructing the space, selecting and negotiating with brands, implementing the marketing strategy, among others. At the end of each sprint, we reviewed progress and adjusted the backlog based on changing priorities and newly identified needs.
📊 Project Closure and Results Analysis
As we approached the opening date, we planned a final sprint for the last preparations and details. During this sprint, performance tests, simulations with customers, and final adjustments were carried out to ensure everything was ready for the opening. Additionally, at this stage, the team prepared a final report to assess the performance and results achieved compared to the initially set objectives.
📝 Learning Assessment
After the opening, we organized a retrospective sprint to analyze the results and learnings obtained throughout the project. We reviewed the successes and challenges encountered, identified practices that worked well, and those that could be improved in future projects. The insights gained during this sprint were documented to apply them in future projects and continuously enhance our processes.
Performance Evaluation
Deadline Compliance
Budget Compliance
The project was executed within the initial budget of 2000 euros. Careful financial management was implemented, maintaining constant expense control and always seeking to optimize available resources. The focus on generating revenue before the opening was key to ensuring that the budget remained under control and that the project was financially viable.
Quality
Key Takeaways
👑 Crowning the customer
As an entrepreneur, it was the first time I charged €1000 per service (m2 in the store) to different brands. I felt tremendous pressure not to meet customer expectations and was afraid they wouldn’t achieve a return on investment.
However, this situation led us to develop a customer-centric approach. We dedicated ourselves to providing exceptional service based on a deep understanding of our clients, comprehending their needs and desires to tailor the service to their preferences and deliver a personalized experience. We made an effort to sell their products in the same way they would, paying special attention to details.
We established a close collaboration with clients, keeping them informed about weekly sales and involving them in finding solutions to improve results.
Throughout this project, we learned the importance of placing the customer at the center. Not only did we focus on our direct clients, but we also provided personalized and special treatment to everyone entering the store, thereby creating a unique and memorable experience.