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It was an ACE store that had been in the family for 90 years. The store manager’s grandfather purchased the store in 1929. We don’t know how long the store had been in business prior to being sold to the grandfather. The store could be well over a hundred years old. The manager’s elderly mother and aunt owned controlling interest in the store. There were two employees, one over 70 years old and the other over 80 years old. The store had been losing money for years and the manager had not paid himself in almost a year. So, the sisters sold the real estate and the store had to be liquidated. The inventory had shrunk to about half its normal size and was in terrible condition with over $100,000 in loose nuts and bolts. They agreed to purchase another $7,000 to $8,000 in good fast turning merchandise making the starting inventory $250,000. Reported sales were $240,000. Our Pre-Showing got the sale off to a good start. We were able to hold media advertising expenses to $4,700 because our customer incentive program carried the load. 1585 customers participated which helped generate traffic down to the last day and gave them an additional incentive to buy at regular sale prices. Considering the condition of the inventory and the situation our Consultant did a terrific job and completed the sale in 45 days.
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!