What should I check about a furniture store’s warehouse space and layout?
Walk the warehouse when it is fullest and see whether it fits the stock comfortably. Check loading access, racking, aisle widths and general condition, then read the lease for any limits on use, alterations or renewal, so you know what the space can really do for you.
Furniture is bulky, so the space behind the showroom often decides how well a store runs. Visit when stock is high and watch how staff move around. Can they reach items without shifting others? Are there clear aisles, sturdy racking and good lighting? Cramped storage slows orders and damages stock.
Look at access next. How do trucks reach the loading door, and can they turn around? Is there a ramp, dock or lift? Ask how often deliveries from suppliers are held up by the layout and whether neighbours or other tenants share the space. Notice damp, pests, uneven floors or leaks, since these can ruin upholstery and wood.
Then read the paperwork. The lease should say how the warehouse may be used, who pays for repairs, whether alterations are allowed and what happens at renewal. A lawyer should review it before you rely on the space. Also ask whether the layout would change if sales grew, or whether storage already limits the business. If the store could use less room, ask what it would take to sublet or downsize. A sketch of the floor plan can help you plan your first year, and a second visit on a different day shows you how the space behaves.
Key takeaways
- Visit when stock is at its highest and watch how staff move.
- Check dock access, racking, lighting and signs of damp or damage.
- Have your lawyer read the lease for use, repair and renewal terms.
Related reading
15 pages on the same subject, grouped by topic.
Due diligence
- Expert answerHow do I check a furniture store’s customer deposits on special orders?
- Expert answerHow do I check a clothing store’s old stock before buying?
- Expert answerHow do I check a convenience store’s product mix before buying?
- Expert answerHow do I check a grocery store’s spoilage before buying?
- Expert answerHow do I check a pet store’s live animals and stock before buying?
- Expert answerHow do I check a retail store’s foot traffic before I buy it?
- Expert answerWhat should I ask about a hardware store’s buying group before purchase?
- Expert answerWhat should I ask about a store’s security cameras and theft records?
- Expert answerHow can I tell if a furniture store’s showroom floor stock is mostly unsold clearance?
Buying
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.