Sectors / Category

Annual turnover

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  • Mandate: 35028
  • Added: 23 Nov 2021
  • AFS
  • 150

Well established, profitable neighbourhood supermarket and take-away in Rustenburg

North West, North West
150
Mandate 35028
Added 23 Nov 2021
R 4,000,000* ZAR
Stock: R 500,000
Assets: R 5,583,343
R 76,423 ZAR
Ian Tennant
(PRINCIPAL)
Aldes Egoli
North West
North West
Summary

This is a 40 year old, profitable supermarket and take-away that is strategically situated between an industrial area and residential suburb in Rustenburg

SELLING PRICE AFS
R 4,000,000* ZAR
Stock: R500,000
Assets: R5,583,343
R 76,423 ZAR
Summary

This is a 40 year old, profitable supermarket and take-away that is strategically situated between an industrial area and residential suburb in Rustenburg

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Fully describe the business's activities?
This is a well known, 40 year old supermarket and take-away in Rustenburg. This business is located between an industrial area and a residential area. Its customer base is largely in the middle to lower LSM markets and its stock offerings cater for this market. The owners have successfully applied for a Food Zone franchise which has been approved and is in the process of being converted. The shop covers 300 sqm.

How long has the business been established?
The business has been established for over 40 years

How long has the owner had the business?
6 years

How does the business operate on a daily basis?
Mon-Fri - 6.30am to 8pm Sat, Sun, Public Holidays - 8am to 8pm

How are the clients attracted to the business?
Regular customers, special offers and passing trade

What Advertising/Marketing is carried out?
Leaflets and Facebook

What competition exists?
Yes, there is another supermarket in the area.

What are the seasonal trends?
Take-away trade improves in winter months

How did the Covid-19 pandemic impact the business turnover / daily operations?
Turnover grew by approximately 15% during 2020 so Covid-19 did not negatively impact the business.

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
Normal retail Covid-19 protcols were instituted

Is the business VAT Registered?
Yes

What VAT documentation is on file?
Vat returns are on file and a tax clearance certificate is available and on file

Are there up-to-date Management Accounts available?
Yes

What Balance Sheet and Income Statements are available?
Up to February 2021

What percentage of the business is cash/credit?
No credit sales. Cash is split 70% cash and 30% card

How could the profitability of the business be improved?
Change to a franchise supermarket, a Foodzone franchise agreement has recently been concluded and the supermarket is currently being adapted to meet the needs of the franchisor. Advertise in the local newspaper

Is Seller finance available and for what amount?
No

What is the total staff complement?
16

Give a breakdown of staff/ functions/ length of service?
4 Cashiers – employed for about 2-4 years 4 Kitchen staff – employed for about 2-5 years 3 Floor staff – between 1-2 years 1 Manager – 3 years 1 Assistant manager – 2 years 3 Take-away staff – 1-3 years

Do any receive special perks or incentives?
No

Are they on contract?
No

Do any have management potential?
Yes, a Manager and Assistant are already employed

How involved is the Owner in running the business?
Fulltime / Hands-on

Any special arrangements for the staff related to the Covid-19 pandemic?
Covid-19 protocols for retail and food outlets have been implemented

When does the current lease end?
The lease has another 4 years to run

Is there an option of renewal & what period?
Yes

What is the annual escalation %?
10%

What are the trading hours?
Mon-Fri 6.30am to 8pm Sat, Sun, Public Holidays 8am to 8pm

What is the square meters of the business?
300 sqm

Is a copy of the lease available?
Yes

What are the main assets of the business?
Retail store equipment which includes IT equipment, fridges, shelving and other shopfittings Take-away equipment includes fridges, display cabinets, cooking equipment and other shopfittings Leasehold improvements

Are any items not included in the sale?
No

What is their overall condition?
Good

Do any require repairing?
No

Are they presently insured?
Yes

Strengths?
The store and take-away are well known and been around for many, many years Loyal clientele base Location is situated between an industrial and residential area The supermarket has just joined the Foodzone franchise group which should strengthen its standing in the area.

Weaknesses?
Size of the store is a constraint

Opportunities?
Invest more in advertising

Threats?
It is a competitive market

What is the reason for the sale?
The owners are emigrating

Why is this a good business?
It is a well known, long established and profitable supermarket and take-away that is ideally located between an industrial area and residential suburbs.

What is the price plus stock and the profit?
Price R3 500 000 plus stock of R500 000 Total price - R4 000 000

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AGENCY DETAILS

Aldes Egoli

1 members
13 mandates
North West
42 Bass Cove The Coves Estate Hartbeespoort 0216

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