Maximizing Retail Asset Returns: The Advantage of Direct Auction Partnerships
Large retail chains occasionally need to liquidate assets from store locations due to transitions, consolidations, or closures. But how can they maximize returns on owned assets in these stores? Auctioning is an optimal solution.
In this post, we'll explore how major retailers can partner with auction companies to strategically market and sell store assets, gleaning far greater value than through private sales.
The Middleman Dilemma
Retail behemoths often sell assets directly to third-party middlemen. These middlemen, recognizing the value of what they’ve acquired, then turn to expert auction companies, like Grafe Auction, to sell off these assets. This layered approach leads to significant losses in potential revenue for the original store owners.
Case in Point:
Since 2018, Grafe Auction has either purchased or collaborated with sellers who acquired several locations from a well-known big box chain store. After purchase, all assets from 23 locations throughout the United States were auctioned off. The process included marketing led by Grafe Auction and hosting of the auctions on Grafe Auction’s website that yielded outstanding results:
- 8.9 million Google Ad Impressions
- $7.5 million collected from auction sales.
Sellers purchase these stores for $75-$100k each and auction them for $200k- $300k each. Had the chain worked with Grafe Auction directly from the beginning and cut out the middleman, they would have potentially made well over $4 million more in revenue.
Grafe Auction: Experience and Excellence
Grafe Auction is no stranger to the retail auction landscape. Our expertise is our signature, assuring results even for the most prominent retail players.
Direct Partnership Benefits:
By partnering directly with Grafe Auction, retailers bypass the middleman, ensuring they reap the full value of their assets. This approach guarantees:
- A more extensive bidder pool with targeted marketing strategies.
- Comprehensive handling, from cataloging to site cleanup.
- Transparent processes that keep sellers informed at every stage.
Modern Auctioning: More Than Just Selling
Modern auctioning is stepping into the digital age. Harnessing the power of online tools ensures assets receive optimal visibility and value.
- Strategic Outreach: Beyond general audiences, Grafe targets specific industry players such as commercial equipment buyers and small retail chains.
- Digital Innovations: Consider strategies like SEO, leveraging machine learning, and creating immersive online content that delivers tangible results.
The Key Takeaway
Store closures and asset liquidations no longer need to be daunting for retail giants. By partnering directly with auction companies, major retailers can maximize returns on owned assets when stores close. Robust marketing unlocks the broadest buyer pool, driving bidding and sales. The transparent auction process aligns incentives to achieve fair market value. By opting for a direct partnership with experienced companies like Grafe Auction, retailers stand to gain immensely, ensuring that every asset realizes its full potential.
Looking to unlock value through a retail store auction? Let's connect to explore your options!
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