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This was a marginally profitable store and the lease was about to expire. Consequently, the owner decided to liquidate it and concentrate on his other more profitable store. The sale was held during the winter; the slowest time of the year. Starting inventory was $200,000 and another $10,000, mostly merchandise the owner wanted to clear out of his other store, was brought in. He also transferred $5,000 in good merchandise to his other store. The opening day of our Pre-Showing sales ran well over $18,000. Reported merchandise sales ran $170,000 and we sold the fixtures and equipment for another $12,000. Media advertising expense ran 0.041%. The sale surpassed the owner’s goals and he was well pleased.
We are facing highly unusual times. Stores in many states, cities and counties have been forced to close, and the consumer has been encouraged to stay at home and only shop for necessary items. It now appears that things are beginning to break open, the consumer is starting to get out and retailers are going to have to aggressively go after every dollar they can get to cover lost sales.
The retail industry has lost their good spring selling season. Retailers are stuck with two seasons of merchandise. Now they must reopen with a strong sale and heavy advertising to generate customer traffic and raise a huge amount of cash. Out of season and over stocks need to be converted to cash while in season merchandise needs to be sold to make as much profit as possible. AND IT NEEDS TO BE DONE AS SOON AS POSSIBLE!