Fully describe the business's activities?
Sophisticated Fashion Clothing Retailer in a lovely mall in Pretoria.The group has been trading for 35 years and is now in the process of franchising some of their stores across Gauteng. This is an excellent clothing retail store with a good trading record and is well-established. With being part of a franchise you can be in business for yourself but not by yourself. This will give an owner the opportunity to tap into the vast knowledge of the Head Office with its expertise in buying as well as its significant buying power.
How long has the business been established?
The group was established in 1986 and has been trading for 35 years.
How does the business operate on a daily basis?
The store is manager run. The owner will be involved significantly as a franchisee to help promote growth.
How are the clients attracted to the business?
The business has an extensive database which is store-specific. Strong presence and very active on social media. The store works closely with the marketing teams of the centre. Influencers on social media are also used. There is also a loyalty programme and Google is also used for advertising.
What competition exists?
Normal competition in malls but this group has exclusivity of certain brands. 80% of merchandise is imported from Italy, Europe with some manufacturing in China.
What are the seasonal trends?
Beginning of each season is very busy.
Is the business VAT Registered?
Yes, the business is VAT registered.
Are there up-to-date Management Accounts available?
Yes, there are up-to-date management accounts.
What percentage of the business is cash/credit?
90% of the business is by card and about 10% cash.
How could the profitability of the business be improved?
The loyalty programme is constantly being improved including looking at giving instant discounts to loyal clients.
What is the total staff complement?
This store has 4 permanent staff including the manager.
Do any receive special perks or incentives?
The staff receive a basic salary plus commission of 4% of sales made by themselves.
Are they on contract?
Yesc, the staff all have letters of appointment.
Do any have management potential?
Manager is already in place.
How involved is the Owner in running the business?
The current owners visit the store about once a week.
When does the current lease end?
There is a current lease in place. The group has an excellent relationship with all its landlords and details will be made available to interested parties.
What are the trading hours?
The trading hours are centre-dependant.
Is a copy of the lease available?
Yes, a copy of the lease is available.
What are the main assets of the business?
Point of Sale Computer Equipment and Shop Fittings and Fixtures
Are they presently insured?
Yes, the business is comprehensively insured including the assets.
Well-established. Excellent, knowledgeable staff. Excellent reputation in the market. Extensive store-specific databases for marketing purposes. Experience of Head Office in purchasing the correct stock for each season. Strong Head Office relationship with suppliers - both local and overseas. Sophisticated fashion targeting up-and-coming women in the area.
None really, except normal economic conditions which all businesses are susceptible too. However, due to the long-standing history of this business it is always well-prepared.
Targeting slightly younger and up-and-coming ladies with sophisticated fashion.
Normal economic conditions which have been well-navigated over the years by this business.
What is the reason for the sale?
The group is franchising a number of its stores throughout Gauteng to help it grow and manage the business better whilst working with like-minded entrepreneurs.
Why is this a good business?
Good profits. By buying this franchise you will be buying into a well-known, well-established, well-respected group. Sites are well-established with good history.
What is the price plus stock and the profit?
The price of this store is R1.7 million which includes stock of R628 000.
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