SB360 Case Study

After an extensive review of the stores and cross-platform implications, the company decided to exit the business of the affected banner, closing the retail locations and the eCommerce store. With plans to redirect its human capital as quickly as possible, the company began to explore options to outsource the closing process. The company realized it needed a partner that had the relationships, experience, and marketing capabilities to deliver results.

The Solution:

SB360 had extensive footwear expertise and had previously closed the Canadian operations of another footwear retailer. We offered a multi-asset, multi-channel disposition solution to efficiently wind-down the business with sensitivity to the complex demands of the sister banners. We seamlessly assumed operational control, providing store and merchandising support as well as oversight of the merchandising for the eCommerce store. Our complete suite of services included the design of a fully customized sign package and the delivery of all creative content for the stores, eCommerce, and email marketing platforms. The SB360 plan factored in: a sale term based on the amount of inventory, the number of stores, and a projection of the percentage of business to be conducted via eCommerce; an effective promotional cadence and marketing campaign to bring shoppers into the stores and keep them coming back; and, a sales’ multiple that would achieve the maximum recovery value. Our plan required aggressive in-store merchandising, strategic discounting and price point promotions, and employee incentive initiatives.

We monetized $52 million in retail inventory plus we sold the furniture, fixtures, and equipment across all 30 stores. The increased foot traffic during the sale created an opportunity for the company to move excess inventory from foreign affiliates through the liquidating stores at a higher recovery than historical channels. Sale proceeds exceeded the company’s desired recovery value and easily covered all store and eCommerce operating expenses.

The eCommerce site shut down on schedule, and the stores closed as planned within the time frames negotiated in the company’s lease termination agreements. Our collaborative effort with the company allowed corporate and eCommerce associates to transition to other banners within two weeks of our initial start date. This support allowed the company to focus on its business strategy and objectives and look to the future growth of its larger brands.