Branded Discount Retailer For Sale

Business description

Established by the current Owners, business start up specialists, in December 2008, this is a rapidly growing discount retailer, having opened the first of what was originally conceived as being a strong regional chain of stores, in one of Kent’s busiest commercial centres.
Ideally positioned in a prime High Street location – with other complimentary retailers in the area, benefiting from high levels of footfall, this business offers everyday quality branded products at discounted prices giving real savings to its customers. All products retail for £1.00 or less ensuring that all customers enjoy a bargain. As a result, in just a very short time, this business has built up an ever increasing, loyal customer base attracted by the fresh, clean, fun and contemporary look of the store, its simple pricing structure, the quality of the products and the frequent promotions offering customers even better value.
Developed with a strong, relevant, appropriate and campaignable corporate identity, this business offers a full range of products including baby goods, food and confectionery – crisps, drinks, biscuits, T-Bags, sugar etc, pet lines, stationery, gifts and children’s toys, healthcare, household goods, hardware and small electrical goods.
The cornerstone to the success of this business is its awareness of what sells in its local marketplace and its ability to source the appropriate products at the right prices through strong relationships with local wholesalers – ordered on-line and delivered to the outlet.
With turnover of between £5,900 and £6,500 per week generating gross margins of approximately 30% and pre-tax net operating profits of between £40,000 - £45,000 this represents an excellent opportunity for an existing operator in the sector to increase their penetration in this very active marketplace or for a new entrant to acquire what is not only a profitable business in its own right – but a very marketable and scaleable concept with excellent growth and expansion opportunities.

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.
Projected turnover for the financial year ending December 2009 is approximately £300,000 generating gross margins of approximately 35% and a pre-tax net operating profit of between £40,000 and £45,000.
The Asking Price of £97,000 is for a sale of the assets and goodwill in the business to exclude the stock at valuation.

Property information

Property:

Leasehold

Lease terms:

The premises are secured on a lease due to expire in 2015 with a tenant only break clause in 2012. Rent is £35,250 per annum. Rates are £9,900 per annum.

Location:

This business operates in a prominent High Street position with synergistic outlets nearby attracting high levels of footfall. There is ample paid for parking to the rear of the premises.
The premises, with approximately 1100 square feet of retail space on the Ground Floor and 600 square feet of storage space on the First Floor, have an A1 licence enabling the business to retail ice creams in summer, hot dogs in winter etc
The premises are secured on a lease due to expire in 2015 with a tenant only break clause in 2012. Rent is £35,250 per annum. Rates are £9,900 per annum.

Other information

Competition / Market:

With a very well positioned retail outlet this business benefits from high levels of awareness from passing traffic boosted by peak time market day leaflet distribution and quality in-window point of sale displays. The business has a very well designed, informative and easy to navigate website which performs very well in all the major search engines for all appropriate search terms. But by far the most effective form of marketing for this business is the strong word of mouth recommendation the business enjoys, testimony to the excellent value of its product range and the customer service it offers.

Support & training:

The Owner 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:

As specialists in start ups, the current owners of this business believe they have taken this concept to the right level to pass it on to new Owners to take it on to the next stage and build on the excellent foundations already laid.

Trading hours:

The outlet currently opens between 8.30 am and 5.30 pm Monday to Saturday, with the possibility of extending weekday opening hours to 7.00 pm in the Summer and between 10.00 am and 4.00 pm on Sundays.