Fully describe the business's activities?
Retails clothing store group with focus on their specific target market. Designers and producers of own in-house product range which is showing strong growth in margin contribution. Business comprises various entities structured for financial advantage.
How long has the business been established?
First store in 1957. Family managed group since 1997.
How long has the owner had the business?
How does the business operate on a daily basis?
There are 5 stores, each with their own manager who opens and closes daily. Relief management is available as and when required.
How are the clients attracted to the business?
Long established with a very loyal client base and within a very focused market segment.
What Advertising/Marketing is carried out?
Strong Face Book following. A data base of over 1800 names on an sms group, and bulk sms's can be actioned. Action Ads.
What competition exists?
There are competitors but this business keep a range for their specific client base.
What are the seasonal trends?
April, May and June are months that show incremental profit due to the product mix whilst Oct, Nov and Dec are busy season with summer ranges.
Is the business VAT Registered?
Yes, the main entity is Vat registered.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
Yes, as and when required.
What percentage of the business is cash/credit?
90% credit cards and remainder cash. The original store still carries a few accounts, all of which are in good standing.
How could the profitability of the business be improved?
The profitability increases as they introduce and sell more products under their own in-house label. There are opportunities for incremental stores if desired. The current owner is considering opening an additional store in an area that has shown demand for such an outlet.
What is the total staff complement?
8 plus 3 casuals
Give a breakdown of staff/ functions/ length of service?
All the staff members have over 5 years with the business and are happy within their environment.
Do any receive special perks or incentives?
All sales staff receive a basic and commission.
Are they on contract?
All staff are permanent.
Do any have management potential?
Yes there is one staff member in particular who plays an integral role with the new product development.
How involved is the Owner in running the business?
On a daily basis.
When does the current lease end?
Each stores has its own lease which will be renewed as required.
Is there an option of renewal & what period?
Yes, all by separate negotiation.
What are the trading hours?
08-00 to 5-00 pm Monday to Friday. 08-00 to 1-00 pm Saturdays.
What is the square meters of the business?
1) 200sqm 2) 150sqm 3) 150sqm 4) 90sqm 5) 80sqm
Is a copy of the lease available?
Yes, all leases are available when required.
Do you require a licence?
No, but the business has an import business in place for when required.
What are the main assets of the business?
Stock Point of Sale system of excellent quality Shelving and Furniture
Are any items not included in the sale?
There is one item of personal ownership being utilised in the business, but nothing of significant importance that cannot be removed. This will be discussed with the potential Buyer. Owners personal laptop.
What is their overall condition?
Very good, well maintained.
Are they presently insured?
Yes, insurance is in place.
There is a long standing manner of doing business within the culture of this operation that has proven to be very successful. The target market is very well defined and the stock range and stores are well positioned for their market. The various stores contribute in offsetting shortfalls of one against the profitability of the other.
A business of this nature require ongoing attention to stock control, and its important to ensure that management focuses on the business model that has ensured success.
The in-house own brand product range has proven to be very successful and is being further developed. There are numerous small towns within the region that could have stores and will trade profitably within a very short period of time. Low start up costs apart from stock.
This type of business requires ongoing attention to detail by the Owners without which it may be negatively affected.
What is the reason for the sale?
The Owner became involved in the business many years ago as a result of family circumstances. They have traded successfully for very many years and he feels that it may be time for him to pursue other interests. However, the Owners wife is prepared to play an active role in the further development of the business.
Why is this a good business?
This is an outstanding business with congenial working conditions and easy to manage with well tried and tested principals and procedures in place. A store that opened recently is trading above breakeven within the first few months and there is an opportunity for yet another store within one of the major Boland towns, with success almost guaranteed.
What is the price plus stock and the profit?
The selling price is : R4,000,000 The average stock value is: R3,000,000 The average monthly profit is: R150K Plus! Please note that the Seller requires Proof of Funds prior to confidential information being released.
Annual Turnover Amount between R 500 thousand and R 6 million