Is COVID-19 Affecting Your Business? LEARN MORE
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.”
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!