Case Study: Children’s Shoe Store Liquidation
In 2000, we held a highly successful Store Closing Sale for a small children’s shoe store. Starting inventory was approximately $100,000 at cost. The opening day sales of our Pre-Showing exceeded $10,000 and the sale was highly successful. The owner was well pleased. He continued to operate his other store in his home town until February 2016 when he decided to retire. Again he employed Wingate Sales to assist with his Retirement Store Closing Sale. This store’s inventory was not quite twice that of the first store but the sales floor was less than half the size. This meant we couldn’t get a lot of the merchandise out of storage rooms onto the sales floor. Even so, at an average discount of 20%, the first day’s sales ran over $35,000 and the first three day’s sales equaled one half of inventory cost.
Not only did the sale get off to a roaring start, it generated three prospective buyers for the store. Most of our sales generate several prospective buyers but 99.9% of them don’t have the finances or are not qualified. Most prospective buyers are just tire kickers. But, once in a while we are able to help sell the store. Our owner received a good offer and he decided to sell, but after meeting with lawyers and bankers, he found it was going to take two weeks to consummate the sale. By that time, our sale would have gutted the inventory and he didn’t want to sell a gutted inventory and create problems for the buyer. Knowing our sale was going to be profitable he sold the store name for $50,000 with position after our sale was completed.