Mexx

Rolling store closure programme across Belgium, Luxembourg and Germany

Transaction background

• Owned by Gores Group and headquartered in Amsterdam, European fashion company Mexx made the decision to close continuously unprofitable stores.
• Following a competitive tender process, GA Europe was selected to manage the store closure programme from 2012 to 2013.
• GA Europe managed the trade-out and the closure of 5 MEXX stores in Belgium, Luxembourg and Germany.

Operational details

• The German-based GA Europe team executed its proven trade out programme, including discount/stock management, POS signs, and a guided in-store trade out process.
• GA Europe's retail operational expertise had an immediate and significant impact upon the chain's trading performance, increasing like-for-like sales by up to 350%.
• Following a full pricing review, GA Europe implemented a programme of targeted markdowns. Through article-specific and store-specific price control, GA Europe achieved an optimal margin.
• Store closures were phased over an extended trading period of 2 months in 2 waves.

Outcome

• All stores were closed with a positive result.
• Due to a sensitive and subtle approach by GA Europe, there were no negative claims from employees.
• The clearance sale had no negative effect on the results of the surrounding MEXX stores, which were not part of the store-closure sales.
• The results achieved with the store closure sales by GA Europe surpassed comparable store closures managed by MEXX in the past.