Discount Store Case Study

Case Study

Two weeks in we hit 100% return

After 2½ years of trying to sell the store and never finding a serious buyer, the owner decided to liquidate. He chose Wingate because of our many years of helping store owners successfully close their stores. This was a full line discount store with short margins. Starting inventory was a little over $2,600,000. The first day of our Pre-Showing sales exceeded $165,000, which was $95,000 more than the store’s previous record day that took place on a Saturday before Christmas. Due to the strong start and upon the advice of our Consultant another $600,000 in inventory was purchased. Reported sales ran well over $3,500,000, plus the sale of fixtures and equipment. Our customer incentive program, which had 9,137 customers involved, enabled us to hold media advertising expense to $24,570 or .0069%. This was a profitable sale. The owner stated: “Two weeks ago when we hit 100% return on inventory I told my staff ‘We know we have hit a home run, now we are just trying to figure out how much we are going to clear the fence by.”