Profit Management Promotions announced the launch of a series of new sales promotion events in October in which more than $14 million in merchandise is projected to be liquidated through concurrent high-impact sales.
The announced dollar-amount of merchandise being sold does not include the PMP projects that involve strategic restructurings of independent furniture outlets, whose owners are using PMP to clear out old merchandise in the process of rebranding or otherwise repositioning their stores for future growth.
PMP has multiple high-impact sales now underway at retail outlets across the country, with several more starting before year’s end. The company attributes the growing number of assignments it is handling to two factors: the continued soft economy, which is forcing store closings – and the urgency among many furniture retailers to begin revamping their merchandise offerings and other aspects of their operations with an eye toward 2011.
“Many independent furniture stores continue to suffer the fallout from the effects of the lingering bad economy,” said Michael J. Egan, president of PMP. “Our mix of assignments reflects the reality that a large number of stores continue to be forced to close – while a growing number are hanging on and striving to revitalize their operations through strategic restructurings.
“It’s important to add, however, that our restructuring assignments also include work for profitable, healthy stores that are conducting promotions to get a ‘shot in the arm’ through a boost in revenues,” Egan observed.
Ron Cooper, PMP’s director of sales and marketing, added, “The surge in the number of sales promotion assignments we’re handling also reflects a psychological factor – that is, many retailers expect the economy to improve in the year ahead, and they’re restructuring their business models now to prepare for the expected upturn in consumer spending.”
PMP’s launched the following going-out-of-business sales in October:
· Silvert’s Furniture – one of the oldest and most established furniture outlets in New Jersey, which has maintained a 40,000-square-foot showroom in Freehold for more than 80 years. The owner opted to shut down the store when given the opportunity to rent the family-owned building in which the store is situated.
- Furniture World and its sister outlet, Furniture Furniture, in Mableton, GA, which have been in operation for more than 20 years. In a strategic move, the owner is closing down the stores in order to consolidate into a single outlet in a more affluent, up-and-coming retail location.
- Lorraine Furniture in Brooklyn, NY. One of New York City’s largest home furnishings outlets, the store is closing after more than 64 years of operations. In this case, two of the three owners sought to retire – and the management team used a sales promotion event to effect their exit strategy.
- Moderne Life Interiors in Jenkintown, PA. This suburban Philadelphia furniture seller is conducting a liquidation sale after 10 years of operations. Here again, the owner wanted to retire, and she used a sales promotion program to maximize her financial return as she transitioned to a new venture.
PMP designed each liquidation sale to feature special customer promotions as part of the overall sales program. These included preferred customer-only private sales that preceded the official store closings. The sales promotions typically run from 30 to 90 days.
PMP’s growing array of client assignments coincides with the company’s recent opening of a new regional office in the Southeast, as well as its ongoing efforts to expand its management team and sales force with a series of new hires.
Profit Management Promotions is one of the nation’s leading sales promotion firms serving the home furnishings industry. The company has a proven track record in conducting high-impact sales promotions that help furniture retailers raise capital or liquidate under-performing stores. PMP also delivers a range of consulting and marketing services designed to help furniture retailers optimize profitability and capitalize on given growth opportunities.
For example, PMP is now actively consulting with furniture store owners on business planning and strategic re-positioning. The firm is also conducting in-depth seminars at industry events – including the recent High Point Market show and the upcoming Las Vegas Market – entitled “Is Your Business Ready For the Next 5 Years?” The seminar content details business planning imperatives for furniture store owners.
Established in 1985, Profit Management Promotions is headquartered in Jamison, PA, and maintains regional offices in New York, New Jersey, and North Carolina.