Fully describe the business's activities?
Uniform retail shop on the school premises of a Private School in the Upper Highway area of Durban. Supplies all school uniforms, bags, sports apparel and text books that are required for the various grades of the school. The school is growing year on year as the demand for pupils escalates
How long has the business been established?
The Kit Shop was started by the current owner in 2013, and has expanded as the school has grown.
How long has the owner had the business?
How does the business operate on a daily basis?
The shop is open at various times 4 days a week. However when the November to January "season" starts the shop opens for longer hours and a further day each week due to demand. Parents utilize this shop for all clothing requirements, including text books and sports apparel
How are the clients attracted to the business?
The school website includes a section on uniforms and sports apparel. The owner advertises on Facebook regularly for updates and specials. Second hand uniforms and sporting apparel is also sold in the shop when a parent upsizes clothing requirements.
What Advertising/Marketing is carried out?
During school functions such as parents open day or sports days, the shop will have a small site to show clothing (either second hand or new)
Does the business have any contract work?
No contracts are in place and there are no terms offered. Credit card and cash purchases are the only payment terms. Suppliers offer a 30 day settlement to the shop.
What competition exists?
There are no other uniform suppliers for the school. Shoes and sporting equipment can be bought from other clothing stores, in the Upper Highway area.
What are the seasonal trends?
During and just prior to year end, the shop becomes extremely busy as parents need to buy uniforms and text books for the next year's requirements. Extra staff are then utilized and paid on a hourly basis for assisting in the sales. Students are often used in the shop during this busy time.
How did the Covid-19 pandemic impact the business turnover / daily operations?
There was a slight "down time" in 2020, but since restrictions have been lowered there has been an upsurge in the trading figures.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Nothing was possible during the school closure during the Covid -19 shut down.
Is the business VAT Registered?
What VAT documentation is on file?
All returns are available for serious buyer, on request.
Are there up-to-date Management Accounts available?
What percentage of the business is cash/credit?
Majority of sales is via credit card with a small amount of cash sales.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
A new buyer could start supplying, other educational institutions in the area, with their specific branded uniforms and apparel. The college is expanding each year, due to demand for extra learners, which escalates demand from the parents of the college.
Is Seller finance available and for what amount?
What is the total staff complement?
I staff member, There is an assistant/receptionist who helps the owner.
Give a breakdown of staff/ functions/ length of service?
All sales and marketing is managed by the owner. The staff assistant will help and manage the shop when the owner is not available.
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
The owner is very hands on and has been since inception.
Any special arrangements for the staff related to the Covid-19 pandemic?
When does the current lease end?
Is there an option of renewal & what period?
There is a 3 x 3 renewal lease.
What is the annual escalation %?
What are the trading hours?
Monday and Wednesday 0715 hrs. to 1100 hrs. Tuesday and Friday 1030 - 1430 hrs.
What is the square meters of the business?
150 square meters
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
1 x months rental.
What are the main assets of the business?
Stock is the main asset and is displayed on movable shelving racks. There are clothing racks, shelving, office furniture, point of sale system and various packaging items.
Are any items not included in the sale?
What is their overall condition?
All very good with a regular supply of new stock
Do any require repairing?
How have they been valued ?
Stock is listed at cost price.
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The shop is on campus and is adjacent to a coffee shop, so many parents meet at the coffee shop during their shopping for new uniforms/trading in of old uniforms The "second hand" facility is an attraction for the parents to upgrade and upsize. Well known and as the school adds more grades so the demand for uniforms escalates.
These is no apparent weakness, as the shop is well known for quality service.
Increase the range for other private schools in the area. Could also add other clothing ranges for the fashion conscious pupils i.e. shoes, jackets hats etc.
There is no threat as the shop is on campus with sound security at the entrances.
What is the reason for the sale?
The owner's husband has been promoted to Pietermaritzburg and the owner would like to relocate their homestead into the city.
Why is this a good business?
Well established on the campus of a growing private school. Well run by a "hands on" owner who adds value to the outlet
What is the price plus stock and the profit?
Priced at R1050000.00 with a Net Profit of over R350000.00 per annum.
Annual Turnover Amount between R 500 thousand and R 6 million