For many store owners, 2017 will be the year they decide to retire, close or sell their store. A decision to have a year end retirement sale is a very emotional one. Especially for store owners whose business has been their life, often for a period of several decades. Many owners hold on to their properties. Then they miss the optimum window of opportunity to turn their inventory and customer goodwill into what could be a nice retirement nest egg.
Customer Traffic Slowed?
As they approach retirement age, many store owners let their inventory dwindle down to next to nothing. Understandably so, they’ve been reluctant to go out and spend money on new merchandise. Now what they do have is old and unwanted. Customer traffic has slowed. The store just isn’t what is use to be. The advice I give to store owners who are contemplating retirement is to go out at the top of your game. No doubt there’s plenty of emotion surrounding this decision. But there’s a critical point where you can reap the rewards of all the time you spent building your retail business.
Sell Your Store?
Of course selling your store is an option, but the major difficulty with this strategy is the lack of qualified buyers. Many buyers do not have adequate financing and may want you to hold a note. The note may become useless if the jeweler does not run a successful operation, meaning you never get paid. Many buyers will only offer you a percent of your cost for the inventory. They claim that they would just as soon invest dollars in fresh inventory of their own choosing rather than in your dated stock.
Benefits Of Year End Retirement Sale:
A professionally conducted year end retirement sale will often generate as much as 1.25 on the dollar for inventory. It can also achieve close to your annual volume in as little as 8 to 10 weeks. With a year end retirement sale you have the opportunity to convert all that customer good will you’ve built up throughout the years into cash.
With a retirement sale you only get one shot at success. There are no do-overs. Once the sale is finished, it’s done. With this in mind it’s extremely important to maximize this once-in-a-lifetime business opportunity and to do some advance planning.
Know the laws!
Running a retirement sale is a unique business proposition. It is different from any sale event you may have conducted previously. For example, you must take time to make sure you are in compliance with both state and county laws regarding store closing sale events. These statutes regulate such things as the maximum length of time an owner can run a store closing sale. They also regulate the ability to bring in or augment inventory during the sale. County laws may be different from state laws but take precedence. Determining what the laws are and where and when to file is an essential first step and will determine the timing of your sale.
Call store closing specialist CCH Consulting at 520-305-9693 or email us at info@retailstoreclosing.com,