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Inventory can be sold to the bare walls with predictable results and minimum risk.

Benefits of a G.A. Wright Store Closing

Benefits of a G.A. Wright Store Closing

 When a store is closing down, unsold merchandise is general sold in bulk to expedite the process. This retail merchandise liquidation process helps make the closing more efficient for the owners and sells what needs to be sold.

Having a store closing exit strategy, supported by G.A. Wright can help you achieve the following objectives:

  • Close a store quickly and efficiently.
  • Obtain the highest cash return.
  • Sell inventory, fixtures and equipment.
  • Collect accounts receivable.
  • Eliminate the risk of financing a business sale.
  • Maintain good relations with customers, employees, suppliers, landlords, government agencies, bankers and the local community.
  • Maintain a positive business image.

How we can work with you to obtain the highest possible return on the investment in your retail business?

The first step in the merchandise liquidation process of planning a store closing is a store analysis and meeting with a Senior Retail Consultant.  This normally takes a day and involves an inspection of inventory, locations, store layout, merchandising, sales records and financial statements covering the previous 18 months.  From this information, the senior consultant can usually make an estimate of sales that can be achieved, the best time to conduct a sale, how long it should take, and the various expenses involved.

"When I met with your representative to discuss the closing and liquidation of my fine ladies clothing store, I was astounded at what I heard.  I thought I was missing something because what was promised to me was too good to be true.  After seven and a half weeks of working with the representative you sent me, not only were the original promises kept, but the closing was successful beyond what I imagined."~G.A. Wright Client - Carriage Trade

To support the decision-making process of your store closing exit strategy, research is conducted to determine the demographic make-up of your store's market area and which customers should be targeted for a store closing sale.  This information is part of the merchandise liquidation process and can generally mapped and reviewed with you.

A consultant will arrive at the store several days before the sale opens to the public. 

Immediate tasks for the consultant include:

  • Meeting with you and your employees.
  • Surveying the competition.
  • Evaluating accounts receivable.
  • Completing the planning process.
  • Interviewing available media.
  • Preparing advertising.
  • Re-merchandising.
  • Employee training.
  • Point-of-purchase layout.
  • Reviewing store security.
  • Pricing.

The sale must open with a strong surge of traffic and sales at high profit margins.  Once the sale has opened, the consultant will closely monitor sales and expenses.  Re-merchandising is an ongoing project, especially as merchandise sells down.  Every week, advertising will be prepared and placed for successful implementation of the merchandise liquidation process.  Special events will be used regularly and will be integrated into the store closing exit strategy.

Customers react in a predictable way to advertising and pricing decisions.  However, close monitoring is very important to be sure that excessive markdowns do not erode profitability or that sale momentum is lost to insufficient markdowns or ineffective advertising.  If momentum is lost and the initial heavy traffic is allowed to drop off, it will require an excessive expenditure to recapture that momentum. 

Security during a sale can be a significant problem unless careful planning is conducted and security is constantly monitored.  There are a number of actions the consultant will take to enhance security and reduce potential losses.

A frequent shopper program is used to enhance sales and to provide incentives for customers to return and shop again.  This program makes the merchandise liquidation process as efficient and successful as it can be.

As the merchandise begins to sell down, the consultant will target those items that prove difficult to sell.   Fixtures and equipment sales will also accelerate as the sale progresses.

The progression of events as the sale nears an end is critical to obtaining a complete sell through of all merchandise, fixtures, and equipment.  This is one of the most difficult periods of the sale since the failure to sell the remaining and least appealing merchandise can cause a significant reduction in the total return obtained.  This is the period where a consultant's skill becomes most apparent.