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This was a long established ACE store with a $300,000 cost inventory. Another $30,000 in fast turning profitable selling merchandise was brought in making the total inventory to be sold $330,000 at cost. The first day of our Pre-Showing sales exceeded $27,000 making it the biggest volume day the store ever had. Reported volume for the sale was a few dollars short of $398,000! This was considerably more than Wingate’s projection (We like to make conservative projections that we expect to exceed). This was a 121% return on inventory cost. There were 1441 customers signed up to participate in our customer incentive program which gave them an incentive to buy more merchandise and helped generate more customer traffic. One customer only missed 3 days of shopping the store over the 9 week sale. This program helped us hold media advertising expenses to $3,751 or .00943% of gross sales. The owner told ACE that we are the only way to go.
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!