It’s sometime confusing when you hear the term “store closing sale”.
There are several different types of store closing sales. There is a GOB Sale – Going Out Of Business, a Retirement Sale, A Moving Sale and a plain old Store Closing Sale. Below is an brief explanation of how these different types of store closing sales differ and how customers often perceive them.
GOB – Going Out of Business is used when a retailer is closing his entire retail operation. He is closing is brick and mortar store and any on-line retail business he may have. A GOB Sale often is perceived by the consumer as an act forced on the retailer. They expect deep discounts right from the start of the sale.
Retirement Sale is a store closing sale that the retailer has chosen to run when they have decided that they want to exit their retail business and pursue a different lifestyle. It is usually approached as a celebration and is perceived as a positive event. For the most part there is no expectation of deep discounts to start the sale. Customers offer congratulations to the retailer on reaching that decision.
Moving Sale is a store closing sale where the retailer is going to close a brick and mortar store and move the operation to a new location or consolidate it with an existing operation. It is usually a result of selling the building, expanding on contracting the retail square footage necessary to run the business or failure to reach an agreement on a new lease. The customer has expectations of reasonable discounts but not to the same degree as a GOB sale.
Store Closing Sale can be used for various reasons. Sometimes the retailer has decided to close only their brick and mortar operation and continue with their on-line business. Store Closing Sale does not have the same urgency that a GOB sale has. Often it is a result of family or health situations. The consumer expects meaningful discounts but not to the same degree has a GOB sale.