Even well established retail and service firms with a score of good locations need to periodically reexamine their sites to make sure that the firm meets its goals. Brake Check, a professional automotive repair company headquartered in San Antonio, expanded into Houston in 1973. Over the next three decades, the company grew to 22 Houston locations but David Peveto, President and CEO, was concerned that some of his stores had become obsolete.

Historically, Houston had been an excellent market for us, said Peveto, but in 2006, I noticed the average sales-per-store had dropped. We needed to look at all our properties, because we were over-saturated in some areas and had no presence in some of the fastest growing communities. We needed a whole new plan for Houston.

Working with the clients management team, we identified their site criteria in terms of demographics, facility size and traffic-flow patterns and then developed a plan for the Houston market. After some market research, and an evaluation of the existing locations, the general plan was refined into a realignment strategy that called for the sale and relocation of 8 stores.

In addition to the ultimate realignment, we needed to take the clients operational and financial considerations into account during the transitional period. We moved quickly to sell or lease the old stores and to maximize the value of each asset. The closing of the old locations and the opening of the new stores had to be sequenced so Brake Check could complete like-kind exchanges and limit their exposure to capital gain taxes.

As one store sold we used the funds to acquire new more visible stores in growing markets. It took almost a year to complete, but the realignment resulted in new Brake Check locations in suburban growth markets like Pearland, The Woodlands, Clear Lake, Royal Oaks, Fall Creek and Champions.

It was an exciting project that was a real success, said Peveto. We now have a great tool for picking new sites, and we keep a better eye on our stores to make sure we provide our customers with convenient locations.
I enjoy working with Brake Check because I am a part of their management team and it is always rewarding when I can help a client successfully design and implement a larger business strategy.