Hardware Store Case Study

A chain of Ace Hardware stores bought another store that was in their trade area. The store had a good location but was in an old, run down building. They needed to liquidate the inventory and sell the old fixtures so they could tear down the old building to build a new larger building and reopen as a new store under their name. Starting inventory ran $275,000. The opening day of our Pre-Showing sales ran over $28,000. Midway through the sale they brought in another $50,000 from a store they had previously purchased. The total cost of goods sold was $325,000 and gross sales ran $365,000 plus the sale of the old fixtures and equipment.  I don’t know what they paid for the inventory but I would suspect they paid less than cost. If so, our sale paid for the inventory and the profits could go to help cover some of the remodeling expenses.

Note: If you are purchasing a hardware store and need to liquidate some or all of the inventory and fixtures to remodel and re-brand give us a call 888-480-7253. We can help you sell the inventory and fixtures and convert them to more cash than you paid for them!