Clear the Shelves

A National retailer with over 500 independently owned stores was faced with a problem of finance and logistics.  They had almost 3000 Skus of aged merchandise within the national retail network.  There was insufficient volume per Sku to warrant the recalling of the products into the distribution centres and the disruption to the retailer business that this would entail. 

The merchandise was saleable, however deep discounts were required to move the products.  Large margin losses, as well as the logistical issues, were under consideration. 

Active International agreed to purchase all the merchandise at the full carrying cost, and allow the retailer to sell it on our behalf.  Both parties agreed to certain financial guarantees.

A strategic marketing plan was part-funded with trade credits to promote the stores that were carrying the most merchandise; stores with a near-by competitor were supported to increase floor traffic during the sales period.

The retailer continues to purchase media through Active International and funds a portion of their motor vehicle fleet purchases with trade credits.  Printing and freight supply are also large areas of trade credit utilisation.