Baby Shop Online And Retail Business For Sale

Business description

Established by a mother of five who went in search of flattering maternity wear – and who discovered a whole host of gorgeous baby clothes, toys and baby equipment along the way, this business, started as recently as June 2007, has rapidly become one of the leading baby shops in the UK.

Based in secondary retail premises – offering easy access and parking for Mothers and Mothers to be, from which the e-commerce operation is also run, this business is the place to go for anyone looking for almost anything to do with Mother, baby and children through to age 5. From all kinds of maternity wear and special occasion wear, baby clothes, carriers, cots and blankets right through to toys, pushchairs, christening gifts and jewellery, changing bags and car seats – this is the place to go. There are even special ranges for premature babies and those with special needs. Bringing to its customers the very best of what is available on the market, what really makes this business stand apart however is the wide range of designer brands this business lists – with Ralph Lauren and Baby Dior featuring amongst other leading ‘high end’ brands such as Bugaboo, Emmaljunga, Boori, StorkSak and Belle Maison to name just a few. Basically if it’s featured with a celebrity Mum or Dad in the pages of Hello! Magazine, you’d be sure to find it here.

With the Owners’ many years experience in retail sales, and e-commerce in particular, this company has established an enviable reputation for reliability and competitiveness as well as high levels of friendly, customer service. It has very well established relationships with its supplier base which has helped to ensure that product quality and availability is never compromised and that customers receive the highest possible quality of service – even to the extent of offering personal shopping visits during which customers enjoy exclusive use of the shop, the undivided attention of one of the Sales Assistants and the very best, unbiased advice on what and what not to buy. Not surprisingly, this business consistently achieves high levels of customer satisfaction. This high standard of service is matched by the operation of the business itself achieving very prompt delivery of product from its e-commerce operation with order fulfilment direct from its retail outlet and items in stock often despatched same day and certainly within two working days. And if it isn’t readily available, then the business will do whatever is required to get it. As a result of this very high level of customer service this business has developed a strong and extensive loyal base of customers throughout the UK.

This business is widely acknowledged as an excellent brand name within its sector. With projected turnover for the financial year ending April 2009 set to achieve £750,000, generating gross profits of approximately 33% and a pre-tax net operating profit of approximately £100,000, this represents an excellent acquisition opportunity for an existing operator to extend their presence in the baby market or for a new entrant to establish an excellent foothold in the sector by acquiring a business with a ‘clicks and mortar’ base with tremendous potential and a record of strong, rapid growth.

Financial information:

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.

Turnover for the financial year ending April 2010 is projected to achieve £750,000 generating gross profits of £250,000 and pre-tax net operating profits of £100,000.

The Asking Price of £295,000 is for a sale of the assets and goodwill in the business excluding the stock which is available in addition to the Asking Price. Stock is generally maintained at around the £100,000 mark.

Property information

Property:

Leasehold

Lease terms:

Rent is approximately £30,000 per annum. Rates are approximately £1,285 per month.

Location:

This business operates from Ground Floor premises in a prominent secondary retail location of approximately 5,000 square feet, with 60% or so dedicated to retail with the remainder given over to storage, office accommodation and the fulfilment and despatch of e-commerce orders.

The premises have been specifically chosen for easy access with ample parking directly outside enabling the easy fitting and checking of baby car seats. The premises also include a lounge area with tea and coffee making facilities used for NCT coffee mornings, baby massage sessions and breastfeeding mothers - or simply by shoppers looking to take a break.

Secure – a new security system has recently been installed, with a bell entry system for members of the public, the premises are leased with the current arrangement due to expire in 2016 although there is a break clause which could be activated in 2011/12.

Rent is approximately £30,000 per annum. Rates are approximately £1,285 per month.

The retail outlet is open Monday to Sunday with personal shopping appointments available in two-hourly slots from Tuesday through to Friday inclusive.

Other information

Competition / Market:

A relatively new business, this company has invested heavily to date to build awareness and generate traffic to its retail and e-commerce site. So successful has it been that the business can boast something of a celebrity following with goods having been despatched to Royalty and leading members of the pop, film and TV world. As well as utilising the normal retail in-store marketing and merchandising techniques, the availability of its lounge for NCT coffee mornings and baby massage sessions draws traffic to the retail outlet – with its free gift wrapping service guaranteed to generate customer loyalty. As well as small display adverts in the national specialist consumer press and local glossy magazines, the business enjoys good levels of PR coverage – having been identified by one of the national broadsheets within its ‘Best pre-Xmas shop’ feature in 2008. Supporting its good natural web listings – its website attracts 50,000 unique visitors per month, the business occasionally spends on Internet advertising to promote products that are known to sell well – but which don’t rank very well on the web. The business also offers a ‘Price Match Promise’ pledging to try to beat or at least match the price of any product that can be found elsewhere online.

Support & training:

The Owners will provide full business familiarisation, training and handover, covering all aspects of the business, to ensure a smooth transfer to new Owners.

Reasons for selling:

The business is for sale as a result of a family illness.