Masters Home Improvement:
An Historic Liquidation
The largest liquidation in Australian history.
GA Australia undertook the monumental task of managing the closure and liquidation of Masters Home Improvement stores across Australia. This operation marked the largest liquidation event in Australian retail history.
While the prospect of liquidating Masters Home Improvement presented a daunting task, GA Australia's decision to stand alone in guaranteeing a recovery result in the hundreds of millions of dollars underscored a bold and rare level of assurance in the asset disposition field.
Before the sale,
laying the groundwork
Masters Home Improvement faced the daunting prospect of closing all 63 of its locations. The challenge was not only to manage the liquidation efficiently but also to maximise recovery from the sale of a vast inventory of appliances, electrical tools, lighting, and other home improvement goods
Laying the groundwork
Offsite preparations
Offsite preparations commenced immediately after the offer acceptance, including ordering pre-approved sale signs and banners, and organizing store districting.
Field consultants
A total of 46 field consultants were assigned, ensuring a robust presence across all locations to oversee the intricate details of the sale.
Direct communication
Direct communication with store employees set the tone for a unified approach, while the strategic hanging of signs and banners visually prepared the stores for the sales ahead.
Implementations
Category-specific discount signage, consolidation of store departments, and stringent loss prevention practices were implemented, ensuring a seamless transition towards the sale period.
Strategize
The initial discounts ranged from 10% to 30%, strategically applied across different categories, maximizing recovery early on in the sale.
Analysis
Weekly sales and stock level analyses informed the progressive discount adjustments, ensuring the target realisation was met without compromising the urgency and appeal of the sales.
Strategic Reach:
Crafting a Message Heard Across Australia
The strategic layering of television, radio, outdoor, digital, and direct engagement channels contributed significantly to the liquidation's success, underpinning a strategy that not only sold out inventory but also created a marketing case study for the ages.
Impact
The cumulative impact of the campaign was staggering, with the equivalent of every Australian adult seeing the message over 400 times in 16 weeks, a testament to the comprehensive and multi-faceted approach of the marketing strategy.
Results
The liquidation process not only facilitated the sale of all merchandise in a short period of 16 weeks, but also achieved an unprecedented recovery in the hundreds of millions of dollars. This remarkable outcome underscored GA Australia's expertise in handling large-scale liquidations and reinforced its reputation as a leader in the asset disposition industry.
Pumpkin Patch: Millions to Move, Weeks to Win
A Liquidation
Across Borders
In the challenging retail landscape of late 2016 to early 2017, GA Australia was tasked with the significant liquidation of Pumpkin Patch, a beloved children's clothing retailer. Spanning 126 stores across Australia and New Zealand, the liquidation aimed to sell over $160 million in retail inventory within an 11-week timeframe.
Laying the groundwork
Immediate Preparatory Actions
As soon as the liquidation decision was ratified, our team initiated the groundwork, prioritizing the creation and distribution of pre-approved signage and banners. This effort was critical in visually setting the stage for the liquidation sales across all stores.
Strategic Personnel Deployment
To manage the operational complexity of the liquidation, GA Australia deployed 18 field consultants across all closing locations. These professionals were essential in overseeing the sale's minute details, from start to finish, across both Pumpkin Patch and Charlie & Me outlets.
Direct Employee Engagement and Communication
A cornerstone of our approach was establishing direct and transparent communication channels with store employees. This engagement was crucial for fostering a cooperative and informed workforce, ready to navigate the sale period effectively.
Visual and Strategic Signage
Our team meticulously prepared each store with category-specific discount signage and organized store layouts to facilitate shopping ease and maximize sales potential. Additionally, the strategic placement of banners and signs created a welcoming yet urgent shopping environment for customers.
Discounting Strategy
With a targeted realisation number set against the retail stock value, we launched the sale with discounts ranging from 10% to 30% across various categories. This strategic pricing was designed to balance inventory liquidation with revenue maximisation.
Ongoing Analysis and Adjustment
Utilizing our proprietary analysis tools, we conducted weekly reviews of sales data and stock levels. This continuous monitoring allowed us to adjust discounts dynamically, ensuring that we remained on track to meet our financial targets without diluting customer interest.
The Power of Data
With access to a customer database of over 1 million emails, the Pumpkin Patch and Charlie & Me liquidation campaign leveraged this invaluable asset to its fullest potential. The database served as a direct line to engaged consumers, enabling us to deploy targeted email blasts that significantly contributed to driving foot traffic and sales volume.
Results
The dual-brand liquidation strategy successfully navigated the complexities of appealing to a broad spectrum of customers, resulting in the effective clearance of over $160 million worth of inventory. The strategic use of the customer database and targeted marketing initiatives played a pivotal role in this achievement, marking the project as a standout success in retail liquidation history.