An analysis is conducted to determine your store’s sales history and trends, the competitive environment, and the demographic profile of the surrounding market area. Recommendations for closure are made in view of these overall market and business conditions as well as a complete evaluation of the physical attributes of the store.
Through evaluation of your store’s sales and financial history, and on-site inspections, a store closing plan is formulated. The plan identifies assets to be sold, ascertains the ideal method of sale, the actions needed to optimize the recovery value, and develops a timeline. The planning process begins at the time of on-site inspections and is completed by the Store Closing Consultant. Monitoring of sales throughout the closing, results in plan modifications that keep the process on course.
Once the store closing plan reaches the implementation phase, a full range of marketing support services assist you in the efficient sale of targeted assets. Advertising, creative services, point-of-sale promotional materials, exterior signs, direct marketing, a frequent shopper program, and fulfillment of all necessary materials to support the closing are provided.
Maintaining a good image in the community and obtaining favorable publicity concerning the closure of a store is essential to realizing the highest possible return from the sale of inventory or assets. A number of steps can be taken to ensure good community relations and gain the advertising advantage of free publicity.
Good employee relations can be maintained with training, counseling, and incentives that will enhance sales and help control inventory shrinkage problems. Key employees can normally be retained as needed during the course of the sale and any negative impact from necessary terminations can be minimized.
Fixtures, Equipment and Other Assets
Fixtures, equipment and assets other than inventory can generally be sold during the store closing process for more than you might think. It is important that special consideration be given to the sale of these assets during the planning process. A substantial number of these assets can normally be sold to consumers at very high prices and some may be sold, toward the end of the sale, to buyers in the business.
Maximizing the value of real estate and leaseholds, while minimizing liabilities to landlords, is on objective of the closing plan. Planning is accomplished with real estate objectives in mind. Guidance can be provided concerning the retention of real estate professionals who may sell real estate and leases or negotiate for early lease termination of non-viable properties.
The process of closing stores and the liquidation of inventory and other assets is governed by a variety of state and local laws, ordinances, and restrictions. In some cases, compliance results in significant additional costs. Experience obtained from dealing with these issues, both nationally and internationally, provide the ability to structure a closing plan that minimizes compliance costs.
G.A. Wright can support multiple simultaneous store closings in many different markets with a large staff of consultants. Services can be tailored to the specific needs of our client with a focus on optimizing financial results while addressing all other client goals and objectives.
G.A. Wright works with a large number of independent retailers of all sizes in both urban and rural locations.
Experience in Canada, the United Kingdom, the Republic of Ireland, France, Mexico, Puerto Rico, the Virgin Islands, and Australia, has provided familiarity with the languages, laws and customs in these areas. Support services can be provided quickly and efficiently in most parts of the world.
"Our considerable inventory was liquidated with only conservative markdowns, our building and fixtures were sold at fair market value, all within the specified ten week period and with minimal advertising expenses."~G.A. Wright Client - Kapina's