OVS fashion

Store closure programme Fashion Retailer with minimum guarantee

Transaction background

• OVS decided to close down the last 8 stores within its business in Austria.
• The plan was to ensure all clearance / closure sales did not impact negatively on the rest of the Brand.
• 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 12 weeks. Due to Covid, stores were closed for 6 weeks and changed the length of the project. This closer didn’t affect the result in anyway and was handle successfully and professional with the new restrictions due to Covid.
• 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 130%.
  
  

Outcome

• All stores were closed on time, free of merchandise and broom clean for delivery to the landlord.
• 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.