Case History: Retail Exit Strategy
Furniture & Accessories:
As family-owned retail businesses are passed down, capital can be generated from the sale of unwanted merchandise with space clearing for opportunity.
After 80 years in business, Jackson Furniture was ready to close its doors. Located in a small industrial town, the family-owned business and family-owned building had evolved into an eclectic group of three different retail verticals: furniture, appliances, and jewelry. The time had come for the next generation to take over, and Jackson was ready to change hands and convert from a parent’s furniture store to a son’s technology business.
Jackson Furniture had felt the pressure of an over 17% decline in sales that compounded through several years prior, and the owner’s lack of motivation to update stale inventory showed. To stave off any further declines in sales and continued depreciation of the assets, the objective was to sell out all of the old inventory wall-to-wall. With the total disposition of the inventory, capital would be raised for the owner’s retirement, and with the increased exposure from the volume of foot traffic, the location could be re-branded as a technology company seated in the heart of town.
92.09% Return on Sales-to-Inventory Cost
15% of the original value of the inventory sold off on Opening Day
Increased exposure for new technology business that thrives today