Mar 15, 2024

Revolutionizing Retail Liquidation: A Deep Dive into Grafe Auction's Successful Partnership with Staples

In the dynamic world of retail auctions, success hinges on a nuanced understanding of the market and the deft handling of diverse assets. At Grafe Auction, we've carved a niche in transforming retail challenges into profitable opportunities, a journey epitomized by our partnership with industry giants like Bed Bath and Beyond, Target, and notably, Staples. Our extensive experience spans a broad spectrum, from supermarket and restaurant equipment to commercial real estate and retail essentials. This blog delves into the heart of our collaboration with Staples, showcasing how we've revolutionized the approach to retail liquidation auctions and generated substantial savings and value for one of the leading retail chains.

The Staples Partnership

Our first auction for Staples was in June of 2018. Since then, we have conducted 105 retail liquidation auctions for them, thirty of which were in 2023, and twelve already for 2024. How does it work? Our expert staff is well-versed in retail auctions. They fly to locations all over the United States and photograph and catalog each item that is on the auction. When they get there, not all locations are completely closed, or may have just closed, so it can sometimes be a balancing act of making sure the customer is still able to shop, while taking photos of the assets. That's why, occasionally in our photos, there are still retail items on the shelves, even though we're only auctioning the fixtures. It's important to us that the transition goes smoothly for our customers and their customers alike.

Once the items are catalogued and uploaded to our website, the auction goes live shortly after. Once bids are closed, we have a team that is on-site for removal of items. Finally, a step that is just as important as the others, includes leaving the location in what we all 'broom-swept' condition.

Transforming Store Closures into Profit Centers

An important part of making the transition seamless for the seller, is making sure their former location is ready to be handed back to the landlord or on to someone new. Grafe Auction's innovative approach sets us apart in the retail liquidation industry. Unlike traditional clean out services that charge hefty flat fees, we establish a maximum out-of-pocket budget for each project and sell the store's assets through our expertly managed auction platform. This allows our clients, like Staples, to realize the proceeds from these sales, offsetting liquidation costs and potentially generating additional revenue. Before working with Grafe Auction, the Staples team were doing this final part themselves. In fact, they were hiring a crew to clean the location for them. Therefore, we were able to save them around $20,000 per auction, amounting to about $2 million in the years we've worked with them. That's no small amount!

By leveraging our industry knowledge, extensive buyer network, and state-of-the-art auction technology, we consistently achieve higher returns on liquidated assets, transforming store closures from costly endeavors into profit centers. Our commitment to maximizing value while minimizing costs has been a cornerstone of our success, setting a new standard for the industry and solidifying our position as a trusted and innovative partner for retailers.

Auction Analysis

Out of the 105 auctions we've done for Staples, we reviewed the auctions from 2023 and 2024 and analyzed the sales data for trends. Here are the trends we found:

Shelving and Racking:

Large amounts of Madix brand wall shelving, gondola shelving, and pallet racking sold, with prices varying based on size and configuration
8'x4'x10' sections of Madix pallet racking with wire decking and 3.5" crossbars tended to sell in the $100-400 range, with many going for around $200-300
Madix wall shelving and gondola shelving prices varied widely from under $1 to over $10 per foot, likely based on height, depth, and inclusion of overspan racking

Furniture:

Laminate tables, counters, cabinets and workstations were very common, often selling for under $100, with some larger pieces and U-shaped counters going for a few hundred dollars
Metal 2, 4 and 5-drawer file cabinets typically sold for $20-60
Various office chairs, folding tables and chairs generally went for under $100

Store Fixtures:

Many different types of metal and laminate merchandiser racks, bins, and displays, with portable 4-way racks being very common. Prices varied widely from under $10 to over $100 based on size and style.
Signicade portable sign holders usually sold for $30-80
Retractable belt stanchions were common and usually under $30

Equipment:

Manual and electric pallet jacks from Crown, Wesco and others typically went for $100-350
Cardboard balers from PTR, Philadelphia Tramrail and others consistently sold for $1000-4500 based on model and specs
Ladders, stock pickers, floor scrubbers, and vacuums varied significantly in price based on model and brand

Overall, there was strong sales volume across shelving, fixtures, furniture and equipment categories, with a wide range of brands and item conditions represented. Large amounts of lightly used shelving from Staples seemed to account for a notable portion of the sales. Buyers likely consisted of both resellers and businesses purchasing for their own use.

This chart displays the average price for each general category identified from the retail assets in the Staples auctions. It provides a high-level view of the price ranges associated with the different types of items listed above. As shown above, items in the 'equipment' category sold for higher prices than the other categories. That is due to the cardboard baler selling price, which is highlighted in the next graph.

This chart focuses on specific categories that stood out in the auction data. For each category, it highlights the minimum and maximum prices that correspond to the price ranges. From the data mentioned above and in this chart, cardboard balers were easily the highest-priced selling item throughout the auctions.

Other Notable Numbers:

The total numbers listed below are from all of the auctions Grafe Auction did for Staples in 2023 and 2024.

Pioneering New Horizons in Retail Auctions: The Grafe Auction Advantage

As we reflect on our journey with Staples and the broader scope of our work in the retail auction sector, it becomes clear that our success is rooted in a deep commitment to innovation, efficiency, and client satisfaction. Grafe Auction stands not just as a service provider, but as a transformative partner, turning potential losses into gains and navigating the complexities of retail liquidation with unparalleled expertise.

Our analysis of the auctions for Staples paints a clear picture of our ability to adapt to diverse inventory needs and market demands. The effective liquidation of shelving, furniture, store fixtures, and equipment underscores our versatility and the trust our clients place in our hands. We take pride in offering tailored solutions that go beyond traditional methods, ensuring a smooth transition for our clients at every step.

As we look ahead, Grafe Auction remains dedicated to pushing the boundaries of what's possible in retail liquidations. With our proven track record, a robust network of buyers, and cutting-edge auction technology, we are well-positioned to meet the evolving needs of retailers and set new benchmarks in the industry.

In conclusion, our work with Staples is more than a series of successful auctions; it's a testament to our role as industry leaders and innovators. We eagerly anticipate the future challenges and opportunities, ready to deliver the same level of excellence and value that has become synonymous with the Grafe Auction name.

Ready to experience the Grafe Auction difference for your retail liquidation needs? Contact us today to learn how we can turn your challenges into profitable opportunities.