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The owner of this True Value store had been trying to sell it and the real estate for some time without success. He decided to liquidate because this would give him a better opportunity to sell the real estate which was quite valuable. The starting inventory was approximately $400,000. The opening day of our Pre-Showing sales ran over $56,000. Our sale and advertising brought the real estate to the attention of a good buyer who had to have possession almost immediately. We had to complete the sale and sell all of the merchandise 3½ weeks earlier than planned. Consequently, we had to take earlier and deeper discounts. Reported sales were $365.000. Advertising expenses were held to $4,000 or .011%. Had we not had to cut the sale short this would have been a profitable 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!