business for sale

Online & Retail Shoe Business with superb development potential

Businesses for Sale

Sale Memorandum

Online & Retail Shoe
Business with superb development potential


Ref.AB072

Location London and North West

Offers Invited

Confidential offered for sale

Asking price includes:

Three excellent high street locations
Circa £1,500,000 turnover
Continuous growth
Eclectic & desirable brands
Very successful e-commerce website
High quality, loyal staff
High media profile
Goodwill
Finance available to buy this business subject to status. All regulated business is passed to independent financial advisors who are regulated by the FSA

Business profile:

This well known, high street and online shoe business was established by the current owner more than eight years ago. It has developed to its current position of featuring three, first class retail locations in London and the North West and has an ever increasing internet business, which is currently producing circa 25% of current sales.

The company is best known for its range of eclectic and desirable brands which include:

Birkenstock
Camper
Cat
Converse
Diesel
Fly London
K Swiss
Merrell
New Balance
Oakley
UGG
Vans

Very strong relationships exist with the above listed brands meaning that the company ‘punches significantly above its weight’. The business is additionally always sourcing new and developing brands to ensure it is ahead of the ‘fashion curve’.

The primary, target customers are men and women, 15 -35 years of age, plus children from the ABC1/2 socio economic groups.

The current owner spotted the trend towards online retailing and has developed a very successful website: the company is now a real ‘clicks & bricks’ business. There are currently in excess of 13,000 names on the very active customer database. The website produces excellent search engine rankings, paying tribute to its design and optimisation. The site is professionally designed, maintained and hosted.


Customer Service

A high level of personal service culture sits at the heart of the business. All staff adopt a ‘we care’ attitude, resulting in a loyal customer base and much repeat business.

Key Strengths

The varied choice of well known, fashionable, high quality shoes is a key strength of the business. This inevitably attracts a clientele with high disposable incomes whom are largely immune to recent increases in interest rates. This ensures a robustness to trading performance.

As stated earlier, the internet currently produces circa 25% of current sales. Of this some 80% is from the UK with the balance being export. This again ensures resilience to economic downturn in different geographies.

Very positive PR is regularly obtained: a professional PR agency is retained, at modest cost, to promote the name of the business wherever possible.
Growth and Expansion

Many successful shoe retailers exploit their brand by developing own label products. The business, to date, has not followed this trend. An own label strategy, sitting alongside the premium brands already stocked, would lead to increased sales and higher profits. Products can be sourced from within Europe and the Far East, always ensuring that quality is at least on a par with existing brands.

Retail locations can be established in other major trading locations in the UK including Manchester, Birmingham, Leeds, Glasgow & Edinburgh.


Key Opportunities

The website is offered in English. Further development in other languages to include French, German, Italian, Spanish, Japanese & Mandarin, would lead to many additional export opportunities.

The strong and well known brand name can be readily expanded to include clothing for the same target market group.
Premises

All three locations are well fitted and each features full security systems.


Business Hours

Retail locations trade for seven days per week.
Advertising and Marketing

The company was a finalist in the Drapers Footwear Awards for 2006.

A monthly email is sent to clients listed on the database, although no other direct mail activity currently takes place. More effort in this important area would undoubtedly bring significant return.
Financial profile:
The business is being offered for sale on an ongoing concern basis: all financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

The business is financially stable with high gross margins and has shown consistent performance since trading begun. The current turnover is circa £1,500,000 per annum.
Employees

Each retail location employs an experienced manager who runs the store. Circa 15 additional employees work within the business either on a full or part time basis.
Support and Training

The owner will be happy to agree to an extended period of support and training to ensure a smooth transition to new ownership.
Reason for Sale

A stage has been reached where the owner wishes to concentrate on his other business activities.
Turner Butler Disclosure Statement:

This statement applies to information relating to any company or other undertaking or business advertised for sale by Turner Butler (a 'Business')

The information supplied by Turner Butler on its website or in any other promotional material ('the Information') is not and is not intended to constitute an offer for sale of the Business or any assets of the Business or of the shares of any company which owns the Business.

For the avoidance of doubt there is no intention to create a legal relationship which will only come into existence when a written contract for sale and purchase of the shares in or the Business has been entered into

The Information provided is not intended to address your particular requirements. Further the Information does not constitute any form of advice recommendation representation endorsement or arrangement by Turner Butler and is not intended to be relied upon in making (or refraining from making) any specific decisions.

Any agreements transactions or other arrangements made between you and any client of Turner Butler are at your sole risk and responsibility. The prospective sellers of the Business have provided the Information to Turner Butler. The Information has not been verified by Turner Butler.

You must carry out your own due diligence and satisfy yourself as to the accuracy of all matters. In the case of the sale of shares in a Business the Information has been prepared on the basis that the shares will consist of or include more than 50% of the voting shares and that both the seller and the buyer is either a body corporate, a partnership, a single individual or a group of connected individuals so as to fall outside the scope of regulated activities as defined by the Financial Services and Markets Act 2000. If you are considering a transaction which falls within the scope of such regulated activities you cannot do so through Turner Butler.

Appropriate professional, legal and accountancy advice should be obtained before making or refraining to make any decision.

Turner Butler does not accept any responsibility or liability for loss or damage of any nature that may occur by reliance on the Information. Neither Turner Butler nor any of our employees or agents makes any representation as to the completeness or accuracy of the Information nor do we accept any liability for any losses, costs, liabilities or expenses which may arise directly or indirectly from your use of, or reliance on the Information.

This document is governed by and shall be construed in accordance with English Law and any dispute arising in connection with it shall be subject to the non-exclusive jurisdiction of the English courts

Turner & Co (GB) Limited registered in England and Wales under company no. 2477988 of registered office Savoy House Savoy Circus London W3 7DA, trading as Turner Butler © Shaun Sweeney October 2006

Next steps

If you are interested in finding out more about this business please:

  1. Click here to generate the Confidentiality agreement with your details
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  3. Sign the confidentiality agreement and fax each page of the document to 0870 432 3611
  4. We will contact you and put you in touch with the seller of the business.

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