Unfortunately there are lots of opportunities to make big mistakes when it comes to planning and implementing a Store Closing Sale. Some can really set you back. Recently one of my clients made a fairly serious one.
Two days before the Sale was to start we put up window banners in all of the clients windows.
Ten windows in all. Four of the windows had banners that stated “STORE CLOSING SALE”.
The windows looked awesome. We were shouting our message. Within one hour of the banners being put up my client received a call from her landlord telling her that the window banners with “STORE CLOSING SALE” had to be taken down. They were in violation of the lease. She could not keep the banners up and in fact she could not run a Store Closing Sale according to her lease.
My client thought that she did not have a lease and was on a month to month basis because she refused to sign her lease at the last renewal date because of a rent increase. After many worrisome hours and much stress my client’s lawyer informed her that the landlord was correct both about the banners and that the Sale could not be a STORE CLOSING SALE.
CHECK YOUR LEASE EARLY ON WHEN PLANNING A STORE CLOSING SALE!
Most leases for space in a major or regional mall have clauses prohibiting store closing sales.They feel that a Store Closing Sale is bad for the Mall’s image and for the rest of the tenants.
In most cases the challenge of signing a Store Closing Sale can be met. If the sale is marking the retirement of the owner, a “RETIREMENT SALE” banner is usually approved by the landlord. It does not have the same negative image impact that “Store Closing Sale” has.Another way to sign a Store Closing Sale without saying it is to use a combination of “SALE” and “Everything Is On Sale” banners.
Chuck Haug
CCH Consulting LLC
Retail Store Closing Sales 