Fully describe the business's activities?
This Business is a privately owned Supermarket. The business has a small general Grocery section, where it offer a variety of household requirements as well as a variety of meat products. The store caters for the lower LSM income group. It also has a full in-house bakery area where it produces its own bread, rolls, biscuits etc. There is also a take- away area that makes and sell food which was cooked in-house. The store has a fairly large owner/ manager office upstairs overlooking the shop. There are also 2 showers in the building if required. The store also is both a lotto merchant as well as an airtime merchants. Sales on these two products amounts to about R250000.00 each per month totaling about R500000.00 pm. The biggest margins in the store is derived from the Meat products, Bakery and take away areas. This business has no formal financials in place and can therefore only be discussed with the seller during viewing process by interested buyers. Banks will therefore not finance this purchase.
How long has the business been established?
Over 20 years
How long has the owner had the business?
How does the business operate on a daily basis?
The store opens at about 6am or earlier. It is close to mid town and also close to a train station on a very busy main road with sufficient parking. Food, and bakery products are prepared fresh in-house on a daily basis. Suppliers generally contact the store on a daily basis for orders. The majority of these Products are delivered by the suppliers to the store, ABI, Clover, etc etc.
How are the clients attracted to the business?
The store is well situated for the clientele that they service and offers the right affordable product for this market.
What Advertising/Marketing is carried out?
Does the business have any contract work?
What competition exists?
Nothing really that is a threat to this store.
What are the seasonal trends?
Weekends and Mondays are very busy days.
Is the business VAT Registered?
What VAT documentation is on file?
All are up to date.
Are there up-to-date Management Accounts available?
No, The figures provided by the seller is derived from the store point of sale system. Although no formal accounts are available, they can be verified from the computer system, and will be provided to qualified buyers. These numbers will need to be discussed and verified during viewing by interested buyers.
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
The business is 100% cash
How could the profitability of the business be improved?
The seller does not spend much time in the business as he has several business interests. He believes that with more focus the store has much more potential. And in this regard he will stay on for a while to assist the new owner.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
6 x kitchen staff 1 x bakery 3 x cashier 1 x merchandiser 2 x supervisors
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
Yes, there are supervisors in place
How involved is the Owner in running the business?
The owner is involved but not on a full time basis.
When does the current lease end?
Is there an option of renewal & what period?
Yes, 5 years with an option
What is the annual escalation %?
TBA, possibly 7%
What are the trading hours?
05h30 top 21h00
What is the square meters of the business?
Who is the Owner/Landlord?
This is a privately owned building
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
What are the main assets of the business?
Shelving, ovens, stoves, fridges, freezers, display units etc
Are any items not included in the sale?
All are included
What is their overall condition?
Both old and new, but in good condition.
Do any require repairing?
Fridges etc are insured for breakdown purposes.
How have they been valued ?
By the seller
Are they presently insured?
Yes, the seller has very comprehensive insurance on his equipment.
Good solid business, producing excellent profitability.
The area is fairly old
New product lines
What is the reason for the sale?
The seller wishes to focus on a business that calls for extensive travelling and cannot spend as much time as needed in the Supermarket. He has owned it for 12 years now and would like to move on.
Why is this a good business?
Turnover is very good and it is well established. Unfortunately no decent financial statements are available and can only be discussed during viewing between the seller and an interested buyer. Banks will therefore not finance this purchase and the buyer will need to have the full purchase price available.
What is the price plus stock and the profit?
R4,600m plus stock of +- R400k
Annual Turnover Amount between R 500 thousand and R 6 million