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So you’ve decided it’s time to close your store.
Perhaps you’re moving on to something totally different.
Maybe you want to retire from retail.
Or has the change in shoppers habits with the rise of Amazon and COVID-19 made you decide to move ina different direction, such as an online shop?
We’re Silverman Consulting & Retail Services, Canada’s store closing sale consulting firm, and no matter the reason for your store closing, we can help make it as successful and smooth a transition as possible.
Keep reading to learn more about the five phases of a store closing sale that can help make it as profitable for you as possible.
Here’s a hint – you learned so much about retail over your many years in the business, but when it comes to running a store closing sale, you’ll have to do almost everything the opposite way.
Phase 1: Establishing The Sale
Having a sale isn’t as easy as just opening your doors one morning and declaring that you’re having a sale – you need to do some prep work first.
This includes getting everything ready, which means:
● Setting your time-line. What are your best 2-3 months of the year? That will likely be one of the best times for your sale.
● Taking a look at your inventory. What is your mix, age, and pricing of inventory?
● Preparing for high volume sales? Look at your store layout, packaging, staff, and hours.
You’ll also need to think about your message and story.
How will you let your customers and the public know this is not just another run of the mill sale?
How have you marketed in the past?
Flyers, email, and social media – what has worked best in the past, and in this new age are there other ways to reach people in your area?
At the time of this writing, we’re in the midst of the COVID-19 pandemic.
If that’s still the case as you read this, there are also safety considerations you need to take into account, especially if you are planning for highertraffic.
This may mean adding directional arrows on the floor, social-distancing markers, and providing hand sanitizer, disposable masks, plexi-shields, additional cleaning, disinfecting and sanitising.
Phase 2: The Kick-Off
The most important phase of your closing sale is the planning but the next most is the kick-off phase.
Aim to do the majority of your sales volume during the kick-off and final days phase of the sale, with a bit of a dip in the middle.
Rememberyour store is closing, so your goal is to turn your assets into cash in a limited time.
During the kick-off phase of your sale, your inventory should be pricedat current market prices in line with your competitors.
Make sure you find current pricing from your suppliers and price inventory accordingly.
Older inventory must be inspected, cleaned up and ready and saleable.
Phase 3: Discounting
As you move closer to your store closing date, you will likely need to continue to increase your discounts, in order to drive more sales.
This is an incredibly fine balancing act and needs to be reviewed at least weekly if not daily.
The rate you will move through the sale will partially depend on your timelines.
For instance, if you’re staring down the end of a lease you may feel more pressure to sell-off items than if you have more flexibility with your end-date, but don’t overextend because you can only keep the public’s attention for a finite amount of time
Phase 4: Keeping The Shelves Full
As your store closure looms closer, your focus should be on moving merchandise around your store andkeeping the shelves looking full.
Your instinct at this point might be to spread out your inventory to keep something on all of your shelves, but this will just make your store look picked over and won’t help bring in new buyers.
Instead, keep the highest trafficked areas of your store well-stocked, and leave the lesser areas completely empty.
The goal here is to turn all your inventory and maybe even the fixtures and supplies into cash.
Phase 5: The Final Countdown
It’s the final days of your sale.
The end is near, and you don’t want to end up having to move boxes of unsold merchandise into your basem*nt or attic.
At this point, some itemswill sell below cost,but you can’t let this distract you – keep your eye on the average.
At the beginning you made great money, and now some items will be below what you paid.
However, if they’re still remaining at the end wholesale liquidators will pay much less than the public will – so it’s still cash in your pocket.
Hopefully, by the end of this, you’ll be able to walk away from your store, without having to worry about what to do with unsold products because you will have so little left over.
Contact Silverman Consulting & Retail Services
Does any of this seem overwhelming?
Are you looking for guidance to help you get the most out of your store closing sale?
Do you want someone to help you every step of the way, offering knowledge based advice for making appropriatemarkdowns at the right time and help your products sell through?
Silverman Consulting & Retail Services is here to help.
We’ll work with you to make a plan forthe most successful and profitable store closing sale, so you can move on to whatever is next for you.
Contact us today to set up an appointment.
Silverman Consulting & Retail Services
229 Yonge St suite 400,
Toronto, ON M5B 1N9, Canada
1 (888) 955-1069
