Ref.AB075 Location KentAsking Price 175,000Confidential offered for sale | |
Asking price includes:
Turnover of £243,000 for the 2005/6 financial year
Gross margins of 42%
Wide range of top quality ‘Labels’
Prime location in one of Kent’s most affluent towns
Mix and match concept to create a unique style and look
Excellent reputation for offering ‘something different’
Excellent growth and expansion capabilities
Established repeat client base
All fixtures and fittings
Training and handover
Good passing traffic
Leasehold property
Excellent staff
Advertising
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: | With an eighteen year track record of successful trading, this business has established itself as one of the best known independent retailers of ladies fashionwear in a Kent town well known for its high quality, independent, retail outlets. Positioned in a prime location in the town centre, directly on the street and enjoying excellent footfall, this business offers an exclusive range of individual, classy, smart casual clothes and accessories for women in their twenties and thirties upwards. Accessories available include an excellent range of belts, jewellery, scarves, wraps and a small collection of hats.
Buying directly from main Agents, and operating mainly mid market, this business has built an excellent reputation for Labels more frequently found in the major London Department Stores, saving its customers the sixty mile round trip. Clothes can be found from major designers from throughout Europe – France, Italy and Germany in particular. Where this business really stands out however is in its capability for merchandising lots of individual collections, rather than several units of the same collections, and more importantly by mixing and matching these collections to offer its customers outfits that can rarely be found elsewhere.
Trusted to work independently of the owner, the four members of staff are a significant asset to this business. Acknowledged but left to browse on entry to the outlet, customers enjoy a friendly and very professional service ensuring each and every customer leaves with a purchase they are delighted with. Alterations are undertaken by a highly skilled and very experienced Saville Row trained seamstress. This together with the excellent product knowledge demonstrated by all staff ensures a steady stream of customers old and new, attracted from the very affluent surrounding towns and villages. This customer base is forever on the increase through customer recommendations and introductions, particularly from women on the local social circuit, players at the local golf clubs etc.
This business has performed consistently well throughout its many years of operation. With turnover of £243,500 in the 2006 financial year generating gross profits in excess of £100,000 this represents an excellent opportunity to acquire an independent retail outlet with a loyal, high spending customer base. | Customer Service:
The business offers high quality customer care from friendly and professional staff.
Staff are particularly helpful to the loyal and regular male Clientele accompanying their partners, enjoying coffee served by the business whilst the shoppers browse. Another major asset to the business is the Saville Row trained seamstress dealing with all alterations.
Key strengths:
Benefiting from excellent footfall, this business is situated in very well suited premises in the centre of a town frequented for its excellent array of independent retail outlets. Well established, the business enjoys good footfall and a regular, affluent local Clientele.
The cornerstone to the success of this business has been its reputation for offering high quality merchandise and Labels only normally found in the major Department Stores in Central London. Its major point of difference is its ability to enable its customers to mix and match these collections, thus creating a style and combination unique to the wearer.
Key opportunities:
There is an outstanding opportunity to build on the existing products merchandise and customer base of this business. With a strong demand for its clothing, combined with a capacity to increase turnover further, a new owner contributing fresh initiatives and some investment – possibly in updating the shop fittings will have every opportunity to build on an excellent platform. | | Premises:
Situated directly on the street, this business occupies a prime location in the centre of a town well known for its independent retail outlets. The outlet is situated amidst a good range of other shops, major bank branches, and other more synergistic outlets including a Waitrose, a hairdresser and a haberdasher. Its very well dressed display window ensures the substantial passing trade see the extent of the range that is available.
The secure leasehold premises are approximately 850 square feet with the retail area to the front and three changing rooms and storage to rear. The premises were redecorated two years ago with a new lighting system installed three years ago.
There is a self contained three bedroom flat above the premises with sitting tenants and a garage to the rear of the premises generating further income for the Owners of the business. A ten year lease was renewed three years ago. Rent is £10,000 per annum with Rates of £4,200.
Opening Times:
The outlet is open from 9.30 am to 5.30 pm, Monday to Saturday but is closed Sundays and Bank Holidays. | Advertising and marketing:
This business benefits from such an excellent reputation that it has no need to advertise on any significant scale. What advertising it does undertake is highly targeted in the colour supplements of the local press targeted at the more upmarket surrounding toens and villages. The most impactful advertising tool is undoubtedly the very high quality carrier bags customers carry through the streets with their purchases.
The business does have a half finished website, the completion and launch of which would assist in lifting the profile of the business even further.
By far the most cost effective marketing for this business however comes from its prime location and the strong word of mouth recommendation this business enjoys, testimony to the excellent reputation this business has particularly amongst its regular Clientele. | | | Financial profile: | The business is being 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.
Turnover for the financial year ending July 2006 was £243,500 generating gross profits of £103,700 and pre-tax net operating profits of £37,600. At the end of the financial year stock levels tend consistently to be around £24,000. | Employees:
The business is managed by the current owner with four part time members of staff with additional casual holiday cover. Alterations are undertaken by a very highly skilled and trained outworker. | Support and Training:
The owner will provide full business familiarisation, training and handover to ensure a smooth business transfer, including full introductions to all current suppliers and assistance with buying, if appropriate. | Reason for Sale:
The current owner wishes to retire. | | 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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