Where to Start when closing a retail store | Retail Trends Blog

The following blog entry contains selected and re-edited content from guest writer, Joan Bergmann ~Retail Ad Week.

Since the early 1990?s store closings have become an all too frequent reality in the current economy and highly competitive environment of the ?information generation.? For most retailers the idea of closing the doors one night and saying ?good-bye? forever is not what they had in mind when the signs said, ?Grand Opening.?

The solution specialist is G.A Wright.

G.A. Wright in it?s capacity as a liquidation specialist, works with a client-retailer on a consulting basis, devloping a program and providing an individual Retail Consultant who works in the retailer?s store everyday during the going-out-of-business process. Unlike other liquidators, G.A Wright does not purchase the store?s inventory nor do they bring in new inventory. Often the first thing that goes through a retailer?s mind when they are thinking about closing their store, is whether they can sell the company as a going concern. Initially it seems to be a very attractive option, which appears to have less risk and more profitability. But the sale of the retail business as a going concern depends chiefly on whether the company is currently profitable and what it?s cash flow is.

What most retailer?s don?t know is that it will be more profitable to sell their business after they sell their inventory and fixtures to the consumer. The business is surprisingly worth more when you don?t have inventory?. more on that later?

If the business is unprofitable because it is not being merchandised or advertised or selling correctly, there is good potential for correction. But if the problems are chronic, and cash flow is always short, then a decision to liquidate may be the right answer.

G.A Wright reports on Store Closing Sales are available to retailers at no cost when you call 303-333-4453. * offer is for retail business owners only* Reference letters from G.A Wright clients are also available.

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