Office World

Office supply Retailer, Office World, Store closure programme with minimum guarantee,

Transaction background

• Officeworld  decided to close down the non-profitable stores within its business.
• The plan was to ensure all clearance / closure sales did not impact negatively on the trade in the  surrounding stores.
• The expected losses had to be kept to a minimum.
• GA Europe was selected to run the sale and closing programme because of its high level of expertise.
• GA Europe provided a minimum guarantee on the return on the inventory.
  

Operational details

• Due to the different end of lease agreements, the closure programme was executed in two phases and completed within 15 weeks.
• GA Europe carried out its successful closure programme for the closing stores with the main focus points:
  - POS materials;
  - Daily discount and inventory management at category level;
  - Stores were left clean and clear of merchandise;
  - Contractual transfer of the stores to the new business.
• GA Europe also developed a special, brand protective promotional program in close collaboration with the client's marketing department.
• GA Europe's retail operational expertise had an immediate and significant impact on the chain's trading performance, increasing like-for-like sales by 180%.
  

Outcome

• All stores were closed on time, free of merchandise and broom clean for delivery to the client.
• The closure of the stores were carried out in collaboration with the employees from head office and stores.
• Due to a sensitive and subtle approach by GA Europe, there was no negative feedback from employees and a good working relationship was formed.
• The management emphasized the excellent cooperation, at all levels, with GA Europe.