Scaling Smarter: Why Growing Brands Are Redeploying Fixtures Across Locations

As restaurants, retail chains and convenience stores conduct store openings, closures, remodels, consolidations or relocations, many are finding value in repurposing existing furniture, fixtures and equipment (FF&E) from other locations rather than disposing of them and purchasing new items. Lighting, shelving, displays, tables, chairs and more require significant investment, even for an individual location, particularly as operational costs increase. The opportunity to redeploy items that are in good condition provides a cost-effective alternative to investing in new items, helping brands turn unused assets into operational value.

While cost is a major consideration when determining whether to repurpose used items or purchase new ones, the benefits of redeploying owned assets extend far beyond cost savings. For brands seeking to consolidate or expand their current footprint, FF&E asset redeployment can offer the following advantages.

• Decreased capital expenditures. Restaurants, retailers and convenience stores that requirefurniture, shelving, displays, equipment, lighting and more face substantial investment per location that can take weeks or months of new business to recoup financially. Disposing of items that are in good condition means repurchasing items they already own. Redeployment allows them to forgo this added expense and replace damaged items at other locations while lowering procurement costs.

• Faster store openings or remodels. Ordering new FF&E assets often involves significant lead time from manufacturers, in addition to opening the door for potential shipping delays and supply chain disruptions. Redeployed items are immediately available, allowing for faster store buildouts and minimal delays. Since items only need to be transferred from one location to another, it also allows for more predictable scheduling and reduces the time required to open or reopen a location.

• More sustainable supply chains. The Environmental Protection Agency (EPA) indicates that more than 12 million tons of furniture and equipment are discarded annually, which should be a wakeup call for brands looking to create more sustainable supply chains. With store closures and consolidations, millions of items end up in landfills during closures or remodels, but assessing the condition of items and redeploying those that are still in good condition can drastically help to reduce waste, lower emissions and meet sustainability goals. In fact, NXTPoint Logistics recently helped a global coffee retailer avoid disposing of more than 1.7 million pounds of FF&E assets in landfills through a nationwide consolidation and redeployment project, resulting in nearly $36 million in overall savings.

• Improved asset utilization. For brands with dozens or hundreds of locations, asset consolidation and redeployment allow them to maximize the value of their owned assets. Pulling shelving, furniture, equipment, fixtures and more and consolidating them in a centralized warehouse location can allow companies to inspect quality, refurbish items that need touch-ups, catalog and track assets, and redeploy them when and where they are needed. Even for companies that don’t have immediate expansion goals, this allows them to create a pool of FF&E assets that can be used for future projects.

• Minimal disruption during projects. Without a strategic plan and an experienced logistics partner in place, remodels, openings and closures can quickly turn into logistical nightmares. While many FF&E items are discarded because companies do not have a place to store or process them, a 3PL warehousing partner can remove the complexity by facilitating organized removal, providing storage and developing plans for redistribution.

Making the Most of Every Asset

FF&E projects are inherently complex, but through effective consolidation and redeployment strategies, companies can work to remove some of the financial burden while improving operational efficiency and achieving greater sustainability. Particularly for brands with multiple locations, these practices can serve as smart, practical and scalable alternatives for companies to grow and manage long-term expansion.

NXTPoint Logistics specializes in FF&E consolidations and redeployments for restaurants, retailers and convenience stores, helping companies achieve greater efficiency, cost savings and sustainability. To learn how our team can ensure your projects happen seamlessly, click here to consult our experts.