Working Paper | 2013

Improving Store Liquidation

by Nathan Craig and Ananth Raman

Abstract

This paper introduces methods for increasing the efficiency of retail store liquidation, which we define as the time-constrained divestment of retail outlets through an in-store sale of inventory. The retail industry depends extensively on liquidation, not only as a means for investors to recover capital from failed ventures, but also to allow managers of going concerns to divest stores in efforts to enhance performance and to change strategy. The operations literature has examined product liquidation, but retail store liquidation differs significantly. This paper augments the literature by introducing techniques for improving operating decisions during retail store liquidations and by demonstrating the performance of these methods in the field.

Keywords: Business Exit or Shutdown; Financial Condition; Operations;

Citation:

Craig, Nathan, and Ananth Raman. "Improving Store Liquidation." Working Paper, September 2013. (Under revision.)