Is COVID-19 Affecting Your Business? LEARN MORE
This was one store out of a group of stores scattered throughout a number of states. Headquarters was 6 states away and the owner was hard to reach. Once reached, he was difficult to communicate with. He wanted to retain complete control even though he wasn’t on site and didn’t understand the concept of a store closing sale. Consequently, decisions often were not made in a timely manner. The District Manager came by several times and he wouldn’t or couldn’t make decisions. The inventory was $125,000 and they brought in another $14,000 in slow turners from other stores and transferred out $1,000 in good merchandise. This made the total amount of merchandise to be sold $138,000. The first day of our Pre-Showing sales were $29,480. Total sales ran over $197,000 for a 143% return plus, they transferred $27,500 to other stores at the end of the sale. With better cooperation and more timely decisions the sale could have been even better.
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!