Five Phases of a Store Closing Sales
A Store Closing Sale should be designed to be profitable! It will generate huge crowds of customers and stimulate them to buy, buy and buy again.
A successful Store Closing Sale is a result of a comprehensive five phase sale plan. It should be a very flexible plan that can be adapted to any store and situation.
- The first phase is the “base” of the sale. The store is prepped for the sale in as short a time frame as possible to save overhead and expenses. The store is re-merchandised to be in a SALE mode. Signs are placed, merchandise is repriced and the layout of the floor is designed to handle the increase in traffic. Merchandise will be sale-priced to sell.
- The second phase is the Grand Opening Phase. This should be the longest, highest volume and most profitable phase of the sale. You should be making a profit on most sales.
- The third phase will be profitable but margins will be slimmer.
- The fourth phase is designed to reclaim your cost.
- The fifth phase cleans up the odds and ends that are left.
What you get out of the first half of the sale makes the profits and what you get out of the last half determines the success of the sale. The return you get on your sale depends on many factors, but the most important factor is the condition of your inventory. Stores fully stocked with good current merchandise tend to get the highest return. Stores with sold down, depleted or old inventories usually get the poorest return.
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