Case History: Retail Exit Strategy
Guided Store Closing Sale
Electronics & Home Theater:
Electric Avenue
Absentee owners with functioning operations can execute an effective store closing sale to generate a higher recovery.
Situation
With a 2010 start Electric Avenue focused on meeting the demand for a specialized electronics store in downtown Miami, catering to locals and tourists. The store was so well received that Flagler Street was shut down with the Mayor attending the opening celebration. By 2012, Electric Avenue expanded into 3 showrooms of retail space and offices for the internet sales division. As often happens, though, the expansion was too big and too fast, and coupled with damaging management hires and accumulating outdated/depreciated inventory, some of which was over 5 years old, the owners became faced with selling-out Electric Avenue to mitigate losses.
Objective
With a lease and licensing timeline, it was imperative to sell out Electric Avenue in 60 days. To overcome language barrier challenges and a lack of sufficient parking, advanced marketing techniques would be utilized for ongoing customer engagement, including the use of App technology, Social Media, Email, Bi-lingual Television/Radio Commercials, and an Infomercial. With the total disposition of the inventory and FF&E, capital would be raised to offset the owner’s investment.
Results
96.15% Return on Sales to Cost of Inventory (adjusted for depreciation)
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Effective use of bi-lingual marketing techniques catering to Central and South American tourists and local Spanish-influenced communities
Delivery of a ready-to-lease storefront within the allotted timeframe
