German Warehouse

Store closure programme with minimum guarantee

Transaction background

• The department store chain was forced to close one of its premium locations due to an ending of the store lease agreement.
• GA Europe was selected out of a competitive tender process to close the department store from February 2015 until May 2015.
• The timeframe of the  stock clearing programme lasted 14 weeks.
   

Operational details

• GA Europe  put an experienced team of Retail experts in the companies head office and  also into the department store.
• GA Europe developed a marketing concept for the store closure, taking into consideration the brand identity and location.
• Due to the above-average sales success, GA Europe was able to purchase  more stock while working in close cooperation with the buying team to deliver additional sales.
• GA Europe was able to maintain a very high level of control throughout the entire sale in the presentation of the inventory in close collaboration with the shop team.
• GA Europe carried out its successful closure program for the closing store with the main focus points:
  - POS materials.
  - Daily discount and inventory management at category level.
  - Condensing shopfloor during sale so that it remains attractive for the consumer to shop.
  

Outcome

• Management's expectations were significantly exceeded.
• The closure of the department store was carried out in collaboration with the employees, trade union and project management at the head office.
• 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 clearance sale did not impact negatively on the trading from the  surrounding department stores, which were not part of the clearing sales programme.
• The management emphasized in particular the excellent cooperation of GA Europe with both the project and store team at central/management level.