Case Study - Discreetly Liquidating Over 50,000 Pairs of Shoes for an established lifestyle brand

Overview

Background

A premium footwear brand faced an inventory surplus due to evolving market trends, seasonal changes, and an upcoming warehouse relocation out of state. They needed a solution that would not only liquidate excess stock but also protect their established distribution channels and brand reputation. HSL Advisory was brought in to provide a comprehensive, end-to-end solution.

Challenge

The brand’s primary goals were to offload their surplus inventory effectively while maintaining the integrity of their core sales channels and brand value. Additionally, they wanted a seamless exit strategy for any remaining inventory that might not be sold in the initial stages.

Solution

HSL Advisory offered a fully managed, end-to-end solution that combined strategic resale, channel protection, and inventory acquisition.

Step 1: Collaborative Planning

• Inventory Assessment: Our team worked closely with the brand’s sales and inventory management teams to analyze the inventory, categorizing products by seasonality, demand, and market value.

• Distribution Strategy: To protect the brand’s core channels, we developed a detailed resale strategy that outlined where and how products would be sold, ensuring that premium distribution partners remained unaffected.

Step 2: Strategic Resale Execution

• Alternative Channels: Our team leveraged non-competing sales channels to resell the brand’s inventory, including secondary market platforms and niche wholesale buyers, to avoid dilution of their brand’s value in primary retail spaces.

• Controlled Release: We implemented a phased approach to selling, releasing portions of the inventory strategically to maintain optimal pricing and avoid flooding the market.

• Brand Safeguards: We provided assurances and contractual protections to keep the brand’s brand positioning intact, including oversight on where and how items could be marketed.

Step 3: Final Inventory Purchase

• Remaining Inventory Acquisition: After the controlled resale phase, our team purchased all remaining inventory at an agreed-upon rate. This ensured the brand could focus on upcoming strategic initiatives without being burdened by unsold stock nor paying exorbitant amounts to ship unwanted inventory across the country.

• Resale and Disposal Strategy: We managed the resale and responsible disposal of the remaining inventory, further reducing the brand’s involvement in operational complexities.

Results

The streamlined approach employed by HSL Advisory led to a highly efficient liquidation:

• Maximum Inventory Resale: Over 80% of the brand’s surplus stock was successfully resold through alternative channels, with no disruption to their core retail partners.

• Channel Integrity Maintained: The core distribution network and retail partners were protected, with the brand image fully intact.

• Cost Reduction and Simplified Operations: The brand saved time and resources by relying on HSL Advisory as a one-stop solution provider for both inventory liquidation and acquisition.

Conclusion

By focusing on collaborative planning, controlled resale, and inventory acquisition, HSL Advisory provided a smooth and profitable liquidation process, exceeding expectations and safeguarding the client's brand equity and distribution channels.

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