Leading women’s shoe retailer –
regional independent with three outlets
Ref.AB087 Location 270000Asking Price £ 270,000Confidential offered for sale | |
Asking price includes:
Turnover for the financial year ending 31st March 2007 of £482,900
Gross margins of approximately 52%
Three leasehold stores in prominent retail locations
Highly trained, professional and talented staff
Newly launched e-commerce site
Significant growth opportunities
Excellent supplier relationships
Advertising and marketing
Own label opportunities
All fixtures and fittings
Training and handover
Established client base
Excellent reputation
Goodwill
Stock | | 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: | Established in 2000, building on their considerable experience within the retail sector, the owners of this business have built up this chain of three independent ladies shoe retail outlets in Sussex. Deliberately chosen for their excellent positions in busy towns across the South Coast, each outlet has became a ‘destination’ shop in its respective location within a very short period of opening.
With excellent German supplier relationships dealing with leading Italian manufacturers, this business is able to retail an upmarket shoe at a mid market price, offering a broad range that encompasses the classic style of ladies footwear right through to the very latest trends aimed at the younger end of the market. As a result this business enjoys a broad cross section of appeal – to customers of between 18 and 60 years – but with a core following amongst the late ‘twentysomethings’. Exclusive styles of shoes and boots available include designs from Tamaris, Sally O'Hara and Marco Tozzi as well as London Rebel and Odean Footwear, for the trendsetters, together with quality designs from Gino Ventori, Country Jack and Lotus. New styles arrive every week encouraging its customer base to return to the outlets at regular intervals, safe in the knowledge they’ll always find something new and different. Its full range of footwear is complemented by an exclusive range of handbags from one of the top designers in Europe.
With Owners with over thirty years of retail experience, this business is based on the traditional retail values of good locations, good quality products, competitive prices but above all high levels of customer service. All staff have been carefully recruited for their customer service skills and their ability to offer the high level of friendly personal service expected of an independent retailer. Highly trained in customer care, sales staff do their utmost to find the perfect shoes for every customer
Having spotted the trend towards online retailing within its sector – the launch of Shoes Direct, for example, this business has augmented its significant regional retail presence by recently launching its very own e-commerce site. The website produces excellent search engine rankings, paying tribute to its design and optimisation. The site is professionally designed, maintained and hosted – but above all enables this business to reach out beyond its normal catchment areas.
With a turnover in excess of £480,000 for the financial year ending March 2007, generating gross margins in excess of 50% and operating profits of £46,000 excluding Directors remunerations and depreciation, this represents an excellent opportunity for an investor to become a major regional independent shoe retailer in the Sussex area or for an established shoe retailer already operating in the area to extend its market penetration across the south coast. | Customer Service:
This business appreciates that satisfied customers return and maintains levels of product and service quality to meet that objective. The results of this commitment are evident in the degree of regular custom and the choice of this business by new customers over competitors.
This business does everything possible to enhance its excellent reputation and to develop its commitment to its customers' needs providing a personal, thorough and high quality service.
Key strengths:
The key to the success of any retail operation is location – and this business has chosen its outlets very carefully, based on this maxim. All its three outlets are ideally situated for maximum awareness and high levels of footfall.
In a sector that is dominated by major High Street chains offering similar styles and average quality, this is one of the few independents in the market, bucking that trend. Having built excellent supplier relationships this business is in the great position of being able to sell a good class of shoe at a middle market price, working with manufacturers that generally supply the top quality, higher priced retailers – including some of the best known names on the High Street.
This business believes in the ‘old fashioned’ retail value of customer service, employing like minded staff – carefully chosen, well trained, knowledgeable highly motivated, loyal and dedicated to delivering personal service and high levels of customer satisfaction.
This is a very well managed business utilising all the best techniques learned by the Owners throughout the many years they have been involved in the retail trade. Locations have been carefully chosen to enable stock to be ‘shared’ – enabling the business to work on lower stock levels than might normally be required to service three outlets. And with excellent storage space available, stock unsold at the end of a season can be held back to form the basis of a pre-season sale the following year.
Key opportunities:
There is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's products across all outlets, a new owner will have every advantage of building on an excellent platform.
There is certainly scope to leverage the excellent reputation this business has to market its own brand of shoe – capitalising on the relationships this business has with its suppliers. An own label strategy, sitting alongside the premium brands already stocked, would lead to increased sales and higher profits.
Within the existing outlets, there is also scope to operate more efficiently. The introduction of EPOS linked to computerised stock control would certainly improve the performance of the business and provide the management information that would assist the development of the business even further. There is also scope to improve the performance of individual outlets – Outlet 1 could possibly benefit from a refit whilst better space utilisation in Outlet 3 would enable the range to be extended to include sunglasses and other accessories. There is also the possibility of incorporating a café ala Tchibo to further encourage the primary target market to visit the outlet even more frequently than currently.
The very recent investment made to date in on-line marketing has yet to be fully realised. Undoubtedly a growth area and extending the reach of the business beyond its normal geographical catchment area further investment in advertising and marketing of this developing sales channel would have a significant impact on turnover and profitability. | | Store details:
Outlet 1:
Location: This flagship store occupies a prime retail location in the main pedestrianised shopping area of this very popular Sussex coastal town.
Established within the group: 2000.
Premises: Leasehold with approximately 500 square feet of retail space on the Ground Floor, with storage space in the basement .There are 6 of the original 12 years remaining on the lease, though it understood that it could be easily renewed. Rent is £11,500 per annum. Rates are £4,500 per annum.
Outlet 2:
Location: Situated in the same town as Outlet 1, this business occupies a prime retail location in another very popular, pedestrianised area. Centrally located and with ample storage space this outlet services its two sister outlets with stock.
Established within the group: 2002.
Premises: Leasehold, with approximately 650 square feet of retail space on the Ground Floor and additional storage to the rear, which could be converted to additional retail space, if required. There are two additional stockrooms and a kitchen on the first floor. There are approximately 8 years remaining from the original 12 year lease. Rent is £12,500 per annum. Rates are £5,000 per annum.
Outlet 3:
Location: This store occupies a prime secondary retail position of this bustling Sussex coastal town, approximately 10 miles from Outlets 1 and 2.
Established within the group: 2004.
Premises: Leasehold with approximately 800 square feet of retail space on the Ground Floor and additional storage space to the rear which could also be converted to retail space. The first floor is given over to a stockroom as is the second floor. As a result, this outlet also services its two sister outlets with stock when required.
There are approximately 7 years remaining of the original 10 year lease. Rent is £20,500 per annum. Rates are £8,000 per annum. | Advertising and marketing:
This business has built such an excellent reputation that it has no need to advertise on any significant scale. What advertising it does undertake is highly targeted towards the major retail periods – mid and end of season sales for example in the local press supported by local leafleting at peak shopping times. Its most impactful merchandising tool is undoubtedly the very high quality carrier bags customers carry through the streets with their purchases.
The business has an excellent well designed informative, secure e-commerce site that performs very well in all the major search engines for all appropriate search topics – however this would benefit from greater in-store promotion.
By far the most cost effective marketing for this business however comes from its prime retail locations and the strong word of mouth recommendation this business enjoys, testimony to the excellent reputation this business has, particularly amongst its regular shoppers. | | | Financial profile: | The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler. The Asking Price of £270,000 is for the shares in the business.
Sales revenue for the financial year ending March 2007 was £482,700 generating gross margins of approximately 52%. | Management:
The two Owners are responsible for the day-to-day management of the business – one in a full time ‘Operations’ role, the lesser involved to a far lesser extent on the financial side of the business. Each outlet has individual Managers in place supported by one full time and three part-time sales assistants who rotate across the outlets as required. | Support and training
The current owners will provide all necessary training and all relevant contacts to ensure a smooth transfer of the business to new Owners. | Reason for sale:
Having been involved in the retail sector for over thirty years, one of the current Owners wishes to change direction and pass on this opportunity to new owners to build on the excellent foundations that have undoubtedly been laid. | | 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 |
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