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This owner owned two stores and as he neared retirement age he wanted to cut back. He put the store up for sale and even though the store was profitable and located in the best strip center in the area he could not find a buyer. Starting inventory was $165,000. He brought in another $14,000 most of which was unwanted merchandise from his other store and pulled out over $7,500 in good wanted merchandise and sent it back to his other store. Reported sales ran over $200,000, plus over $5,000 in unsold merchandise was transferred back to his other store. The opening day of our Pre-Showing sales ran over $34,000! We had 450 players in our Fun Game which helped us hold media advertising expenses to 2.6% of gross sales.
Earlier this year we made the decision to scale back the franchise investment in our retail stores so that my wife could retire. We have been in business for 18 years at our HobbyTown – Delafield location. Despite our strong history, we were unable to find a qualified buyer. Thus, our attention turned to maximizing our return from a store closing- retirement sale.
I had heard about Wingate, so when I learned about the very positive experience of a fellow franchisee I decided to call. Kevin Bonnet walked me through the process and answered all of my questions – no matter the time of day. After some additional due diligence, I felt that an engagement with Wingate was a good idea. While we have been through several business grand openings and re-openings, we have never closed a business. Thus it was natural to be a little uncertain about what Wingate would bring.
On June 12th, consultant James Stewart arrived in our store. Writing this letter at the conclusion of our sale, I cannot express how impressed we are with Jim. The results speak for themselves as we exceeded every challenge goal we set. Here are a few of the ways I would describe the engagement with Jim:
On the final day of our sale, our store is virtually empty. The opening day had double the sales of our best day ever. The final sales total exceeded the best December sales in our history. The results say it all. Suffice to say, we are very happy with our decision. We would highly recommend Wingate to anyone. Their retail experience is unparalleled, and it was our great pleasure to work with them.
~ John W. Zingsheim
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!