Deutsche Woolworth

Deutsche Woolworth, a famous general merchandise retailer, commissioned Gordon Brothers to formulate and execute a strategy for liquidating significant volumes of obsolete stock through 4 stores that were earmarked for closure.  In order to liquidate vast quantities of obsolete stock, the project was completed over a 28 week period, utilising a two-phase exit programme with the themes; ‘Massive Clearance Sale’ and ‘Store Closure Sale’. 

Following precision capacity calculations for obsolete stock liquidation, Gordon Brothers then designed the promotional and marketing plan for the project. We subsequently co-ordinated the distribution of the obsolete inventory into the 4 closing stores and commenced the ‘Massive Clearance Sale’ promotion.  During the last third of the project, the promotional strategy changed to the ‘Store Closure Sale’, liquidating the entire inventory to zero and enabling the stores to be closed and handed back ‘broom-clean’.

With a 28 week project, it was important to maintain the core product range in the 4 stores.  In collaboration with Deutsche Woolworth, Gordon Brothers were able to replenish the ‘never-out-of -stock’ ranges, which were the key selling lines.  This enabled us to provide a full product range offer for customers, which helped maximise footfall.  Moreover, the Client benefited from significant full-price margin sales generated from the ‘never-out-of-stocks’ which, of course, flowed straight to the bottom line.

In addition to applying Gordon Brothers’ significant retail experience, a key factor in the success of the project was the ongoing collaboration with the Deutsche Woolworth management team, who recognised and responded positively to the opportunities to add value into the stock clearance and store closure process.

Working with Deutsche Woolworth, Gordon Brothers managed to overcome obstacles quickly and effectively, clearing all stock within the agreed timeframe.  The deal was a resounding success, resulting in an ongoing relationship being established and Deutsche Woolworth commissioning Gordon Brothers to repeat the project with additional stores scheduled for closure.

Heinich Richter, Buying Director, Deutsche Woolworth, said, “All of the team at Gordon Brothers worked extremely well with our team here at Deutsche Woolworth – we had a great collaboration and there was a great spirit from the beginning of the project that remained right through to the end! Of course, there were challenges along the way, but together we found and implemented solutions, quickly. In summary, it was a very successful project for us here at Deutsche Woolworth.”