Service Oriented Bridal Wear & Men’s Formal Wear Business For Sale

Business description

Service Oriented, Bridal Wear & Men’s Formal wear – Sales and Hire

Established in its current format approximately two years ago – evolving from the closure of one of the UK’s leading High Street bridal and mens formal wear chains, this business, still part of a franchise/buying group arrangement formed from the top 16 performing stores from the original chain, has firmly established itself as the place to go for Brides and Bridegrooms planning their big day or for men dressing for that formal occasion. Prominently located on a busy High Street – in premises that have been associated with bridal wear and formalwear for almost twenty years - in a very affluent town in Kent, this business goes out of its way to make every customer feel very special from the minute they walk through the door right through to the big day itself. Offering a very personal one-to-one service, for Designer Wedding Dresses, Bridal Gowns, Bridesmaid Dresses, Bridal Accessories, Mens Hire Wear, Men's Tuxedo Suits or even Highland Wear, this is the place to visit.

With something for all budgets and all sizes, this business is an ideal retail outlet for the sale or hire of clothing with private fitting rooms, large mirrors, a wonderful showing area and a stunning array of gowns, dresses, suits and accessories. It has a warm and friendly ambience, enhanced by the welcoming, attentive assistance provided by the highly experienced and professional staff.

Carefully chosen to give a diverse selection, from the traditional to more contemporary styles, the collection of bridal gowns and bridesmaids dresses – which includes a range developed in conjunction with a major international manufacturer and exclusive to this group is spectacular and certain to capture the imagination of any Bride. The shop’s wide range of bridesmaids' gowns is equally stunning. New creations are purchased for the collection in the Spring and Autumn when the designers' new styles are released.

The range of menswear is equally impressive – with retail and hire stock held in-store, and readily available. Whether the need is evening wear, everyday suits, wedding attire, or accessories; this business has it available for hire, or for purchase with stock regularly updated in line with current fashions, whilst still maintaining a classic range.

This company is successful because the staff ensure customers are delighted with the service they receive which leads to excellent personal recommendations and a constant stream of customers. With turnover for the financial year ending June 2009 of nearly £200,000 with gross margins of £130,000 and pre-tax net operating profits of £38,000 after Directors remunerations and interest payments totaling £20,000, this is an excellent opportunity to acquire a very profitable business with the very best reputation and excellent growth prospects.

Key strengths:

This business benefits from high levels of brand awareness. Previously a franchise of a national UK chain, the company has retained all of the systems and processes associated with the former company – with the top 16 outlets forming a loose franchise/buying group arrangement with each outlet a shareholder of the new Master franchise.

This business prides itself on the excellent levels of service it provides. Every customer, no matter what the budget, is made to feel very special indeed. Everything about the way this shop operates exudes quality. At the busiest times, visits – particularly during the main buying season, are by appointment only.

This business offers a sensational selection of bridal gowns, bridesmaids’ dresses, bridal accessories and formal menswear. Working with a very carefully chosen small portfolio of designers – many offering exclusivity on a geographical basis, the styles offered are unique, the quality excellent, sales high and margins very healthy. Alterations are completed on-site, to a very high standard, by a directly employed seamstress.

In the retail sector location is everything. With a very wide and extensive catchment area which stretches throughout Kent, into Surrey and the outskirts of London, this business is prominently located on a busy High Street and consequently has high levels of passing trade.

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 the products retailed by this business, a new owner contributing fresh ideas, enthusiasm and motivation together with a little investment will have every advantage of building on an excellent platform.

Whilst this business is already successful, there are several areas for growth and expansion. Currently the business caters for all types of budget. There is certainly the possibility of moving more ‘upmarket’. This business offers a superior service and could leverage its excellent reputation by offering higher priced gowns, dresses and accessories. By perhaps working with more exclusive designers, for the same amount of work, margins could be finessed upwards with a consequent impact on turnover and profitability.

Currently offering ‘everything for the bride’ this business could extend its range to cater for the ‘Mother of the Bride’. There is significant demand for outfits for arguably the second most important person on the big day and these are currently referred elsewhere. There is certainly the capacity within the current outlet to display stock of ‘Mother of the Bride’ outfits.

Although the business is aware of the benefits of advertising and marketing, more could certainly be done. With the exclusive rights to operate within its franchise area there is also the possibility of opening additional outlets within its operating area.

The franchise agreement:

The business pays £250 per month as part of its franchise agreement. In addition the business commits to buying a number of dresses each year – set at 35 dresses for the current year. However as a shareholder of the overall franchise, this business has a major say in the quota that is set. The UK franchise also receives a rebate for every dress sold through its manufacturer relationship which is re-invested in marketing and advertising.

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 June 2009 was £195,000 with gross margins of £130,000 and pre-tax net operating profits of £38,000 after Directors remunerations and interest payments totaling £20,000.

The Asking Price of £150,000 is for a sale of the shares in the business based on Shareholders Funds of £21,000.

Property information

Property:

Leasehold

Lease terms:

The premises are leased with the current agreement due to expire in November 2010 – though there is an option to renew. Rent is £25,000 per annum with Rates of £10,900 per annum.

Location:

The business operates from a secondary High Street location in this affluent Kent town. Tastefully decorated across two floors, the Ground Floor is dedicated to retail including four bridal changing rooms and three for menswear and the Basement to storage.

The premises are leased with the current agreement due to expire in November 2010 – though there is an option to renew. Rent is £25,000 per annum with Rates of £10,900 per annum.

Other information

Competition / Market:

Well established – and in the premises of a shop associated with bridalwear for over twenty years, this business enjoys high levels of residual awareness. The business also has a very well designed and executed website which performs very well in all major search engines for all appropriate search terms. Its high levels of customer service also generates significant word of mouth recommendations – by far its most effective and impactful form of advertising. Part of the franchise group, the business benefits from features in national bridal magazines. Slightly more generic tactics include attendance at wedding fayres, whilst Designer days advertised in the local press and competitions promoted in local glossy magazines also make up the marketing plan.

Support & training:

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

Reasons for selling:

The current Owners believe they have taken the business as far as they can within their own resources and believe the time is right to pass the business on to new Owners to build on the excellent foundations already laid.