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The store was not making enough to cover loans. After the sale started the owner was only in the store one week before taking a vacation and when he got back he started a new out of town job. The manager quit early in the sale and the employees were rebellious and didn’t want to work. Our Consultant had to do almost everything. The inventory was estimated at $500,000. The opening day of our Pre-Showing sales ran $41,500. Gross sales ran $470,000 while holding media advertising expense to .03% of sales. In addition, our Consultant sold the fixtures and equipment for over $111,000. Not bad when considering the lack of store management and the employees lazy attitude. With good management and positive employee attitudes this could have been an outstanding sale.
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!