Sports Retailer - Real Estate Optimization

Client:

Canada’s largest sports apparel and equipment retailer.

Issue:

Our client was looking to drive operational efficiencies by reducing its real estate footprint across its portfolio of companies.  One of their strategies was to integrate a national chain of stand-alone specialty locations into their larger retail formats using the “store-within-a-store” concept.  This meant a major reduction in inventory and a significant cost to close out existing leases.

Solution:

Active purchased the excess inventory from the old locations paying the full cost value using Trade Credits, coordinated the packing and removal of the goods from each location and worked with the retailer to ensure the product was re-sold out of market to eliminate any competitive impact. Active then worked with the retailer’s Agency of Record to purchase their advertising, which included television, radio, out-of-home and digital media.

Benefit:

The retailer was able to transition out of the old format locations in short order and with seamless and reliable 3rd party execution. They also achieved greater value on the merchandise which enabled them to fund a portion of the relocation expenses and adjust their footprint with minimal negative exposure in the market.

A partnership with Active could work for you if you:

  • Transition planograms or suppliers causing disruption in your customer marketing and merchandising programs
  • Are looking to drive efficiencies in your supply chain return on total capital
  • Are faced with a back-log of inventory due to poor on-shelf performance

To learn more how Active can help you optimize your real estate footprint while minimizing your losses, contact us today.