All inventories were exchanged at stores using the closing sale
Situation
Global apparel retailer company A announced the withdrawal of B brand (casual wear) from Japan. All stores located all over Japan would be closed.
Since it was the company’s first brand withdrawal in Japan, Gordon Brothers Japan (GBJ) proposed a liquidation of all inventory and provided advice on closing sales.
Solution
GBJ supported the B brand store closure project as a consultant for company A.
Inventory in about 50 stores (from Hokkaido to Okinawa) targeted for the project was liquidated in sales over a period of about 3 months.
Set a minimum sales target agreed with Company A in advance.
GBJ provided advice on discount rate control, inventory control through inventory movement between stores, advertising strategies, etc.
The inventory was sold in store closing sales, and the liquidation was completed on the final day of closing. GBJ carried out the project without compromising the relationship with store lessors.
Results
All items were sold at store closing sales within the sale period of about 3 months.
