How Retailers Can Close Stores When The Retail Industry Gets Cold

According to the world clothing shoes and hats net, 2017 years ago, the United States

Serious cold, there are 1500 shops have been shut down, including companies such as Messi, Sears, American Apparel, Abercrombie & Fitch......

So what is the problem? How can retailers deal with the rest of the fashion, hangers and humanoid models in the aftermath of unemployment?

The practice of large retailers is to hire liquidation companies to handle all kinds of issues.

Bradley Snyder, executive director of Tiger Capital Group, said in an interview with reporters: "the team will work out the time and intensity of goods discounts, and the shops will take over after the formal closure."

The company he worked in last year took part in the store of Sports Authority Inc., an American sporting goods giant, and is working with another winding up company, Great American Group, for California.

Brand Bebe and chain parity shoe store Payless two services.

"Because we are professional liquidation, we know how to sell stocks."

Bradley Snyder takes Messi department store as an example. "There were a bunch of Apple smart watches in the warehouse at that time, because they never sell at discount, so they can sell only 5% off."

In accordance with the style of Tiger Fund Management Group, the company will dispatch a supervisor to shop every day to understand the status of the goods.

When the inventory is settled, the winding up company or merged shop will pfer the surplus goods to the highest flow shop.

Sports Authority

American Apparel

Any sale of liquidation must keep the stores close soon after sale.

For a company, adjusting the store according to the sales status is a common commercial activity. The main purpose is to maximize the return on business cost, but once it is mishandled, it may damage the brand image.

As for example, Bradley Snyder said: "their first principle is protection.

So this big promotion does not look like a sale. "

For example, the discount posters of big red rhubarb and black rental advertisements can never appear.

Kate Spade former staff recalled that two years ago, when the Soho shop closed, the real estate company came to paste a huge notice of rent.

"We were still in business. The big announcement looked very unattractive."

Andi Smith told Racked, "our design team changed a beautiful yellow bottom sans serif post a few days later."

Although the store keeps the shop employee's career in a crisis, it is not totally useless -- for example, the furniture in the shop can be bought before consumers: the chair is 150 dollars (about 1033 yuan), and the humanoid model is 50 yuan (about 344 yuan).

All the furniture is cash only because they are not included in the inventory records in the computer system.

In 2015, Kate Spade announced that it had cut down its young vice line Kate Spade Saturday.

The advantage of buying the bargains and sometimes bargaining.

Since early this year, American Apparel was confirmed to switch to Canadian apparel company Gildan Activewear, and announced that it had closed 110 stores in the United States.

A company employee said that not all stores would have a unified discount before closing, so some guests asked to pay according to the price of another store after they arrived.

If you have a good relationship with the staff, they may sell you a whole box of clothes with 5 dollars, and maybe you can take you away with a dress without a sign.

Andi Smith recalled that the Kate Spade Saturday, which was cut off by Kate Spade, originally planned to send the remaining stock to the warehouse, but later she heard that the chain discount T.J.Maxx and Marshalls had their own products.

Bradley Snyder indicates that the company does not keep any stock.

"What you saw in the last week is ladder type promotion art. When the ninety percent off promotion starts, there will be guests shopping with shopping carts."

Compared to the goods and display props in the shop, brand leasing often leads to rental contracts, because most shops lease contracts are ten years.

The best case is that the owner authorizes the retailer to sublet the premises, or the terms are accompanied by the "rescission" agreement, that is, when the retailer does not earn a certain amount of sales, the lease can be terminated.

But if it does not meet the above conditions, retailers will not only have to pay 3 months' rent and brokerage fees, but also have to pay for the decoration for the next tenant.

"Now the vacancy rate is getting higher and higher, so it will take longer for the industry to find the next home."

Joel Isaacs works for the commercial Real Estate Company Isaacs & Company, and its clients include Prada, Marc Jacobs and other luxury brands.

This also means that if the brand wants to quit, it may need to pay a higher vacancy penalty.

For example, the Polo Ralph Lauren, which was announced shortly after its closure, is located at the flagship store in Fifth Avenue, New York. Although it has been closed down, Ralph Lauren is still paying $68 thousand a day for the shop because it has not yet found a tenant.

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