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Grocery Supermarket with Bottlestore For Sale

Reference: 25559

Business details

Views: 1199

Price:

R5,900,000

Average profit:

R113,887

Sector: Retail
Stock: R1,400,000
Price excl. stock: R4,500,000
Total assets: R4,500,000
Monthly turnover: R2,004,182

Eastern Cape

Summary

Well established, international branded Supermarket with Bottlestore for Sale.This outlet is in close proximity to the new industrial development Zone. yielding 23% return on investment. Priced to sell

1. History Background

Fully describe the business's activities?

Retail Grocery Supermarket operating from 8.00am to 8.00pm. Franchised liquor store operatng hours as prescribed by Liquor licence

How long has the business been established?

Supermarket since 1996, liquor store since 2004

How long has the owner had the business?

2003

2. Present Market

How does the business operate on a daily basis?

General assistents for sevice departments( butchery, bakery and deli) enter at 6.00am and start prep work. Cashiers and Shift managers enter at7.30 to open trading by 8.00am. At 11.00am the second shift comes in and closes at 8.00pm

How are the clients attracted to the business?

Well established brand. Continous advertising via brochures and leaflets

What Advertising/Marketing is carried out?

The Franchise destributes leaflets and brochures

Does the business have any contract work?

No

What competition exists?

Other branded Grocery supermarkets in area

What are the seasonal trends?

Sales spike upwards in Dec through to April. August, September generally quieter

3. Financial

Is the business VAT Registered?

Yes

What VAT documentation is on file?

every two monthly returs as requested by SARS

Are there up-to-date Management Accounts available?

Yes

What Balance Sheet and Income Statements are available?

The AFS are in the process of being drafted. Accoutants have a draft on file

What percentage of the business is cash/credit?

100% Cash

How could the profitability of the business be improved?

The present owner is in the process of instaling a Pizza oven

Is Seller finance available and for what amount?

No

What is the ROI?

4. Staffing

What is the total staff complement?

53 Staff members, consiting of General assitants, supervisors, cashiers and managers

Give a breakdown of staff/functions/length of service?

Large % of staff members been employed for numerous years.

Do any receive special perks or incentives?

No

Are they on contract?

On full time employment contract

Do any have management potential?

Managers and supervisors

How involved is the Owner in running the business?

100%

5. Premises

When does the current lease end?

The current ownerof thesupermarket is the owner of the building

Is there an option of renewal & what period?

To be negotiated with present owner

What is the annual escalation %?

To be negotiated

What are the trading hours?

Trading from 8.00am to 8.00pm

What is the square meters of the business?

Retail Floor 720m2 Tops 140m2 Backup service area 300m2 New pizza area 60m2

Do you require a licence?

A liquor licence for Tops. The existing licence can be tranfered to new owner

What lease deposit and/or other surety is required?

2 months rental deposit

6. Assets

Is a full asset list on file?

Yes

Are any items not included in the sale?

No

What is their overall condition?

Good working condition.Maintenance is an on going task and owner undertakes to hand all equipment over in working order.

Do any require repairing?

No

How have they been valued ?

At cost less 50% depreciation

Which assets are on lease/HP and with whom?

Non on HP or Lease

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths?

The supermarket belongs to an international brand and are pioneers in the grocery retail industry

Weaknesses?

Competition from other retail supermarkets

Opportunities?

In an ecconomic growth area, dense populated and close to construction site of new harbour.

8. Reason For Sale

What is the reason for the sale?

Owners family has emmigrated

9. Conclusion

Why is this a good business?

Belongs to an international brand, situated in dense populated area, in proxinity to developing area.( Coega deepwater harbour)

What is the price plus stock and the net profit?

Price R4 500 000 Stock+/- R1 300 000

Interested in buying this business?

Contact Broker