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This was a nice 20,000 sq ft well established ACE store. Sales had been declining for some time and the owner had been trying to sell it for 6 or 7 years. The inventory had been shrinking and when they inquired about our service the inventory was down to $500,000. By the time they decided to use our service the inventory had shrunk to $410,000. Our Rep convinced them it would be beneficial to buy some additional merchandise for the sale. They purchased another $25,000 in fast turning, long margin merchandise making the total inventory $435,000. Opening day of our Pre-Showing sales exceeded $52,000. “While we expected our opening day to be big, it was huge! And we still exceeded a 30% margin for the day!” Reported gross sales ran a little over $500,000 for a 128% return. Plus, fixtures sold for over $20,000 and a truck, trailer and fork lift sold for over $36,000. Due to our customer incentive program that had 3,400 customers involved, we were able to hold media advertising expenses $10,242. NOTE: We were recommended by our good friend Tom Chasteen owner and founder of The Hardware Conference and Hardware Connection Magazine.
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!