Ladies Retail Boutiques And Online Shopping For Sale

Business description

This is a great opportunity for an enthusiastic and creative entrepreneur to acquire a small chain of ladies fashion clothing and accessory l boutiques in Gauteng and Durban, in upmarket shopping malls, with tremendous potential for growth.The on-line home shopping website is attracting increasing volumes. Head office consists of accounts/admin, sourcing product, imported garment finishing, stock room and distribution

The business was started 33 years ago.

The retail store managers and staff run the stores. Head office is managed by the owners, that is the finishing dept, stock room, distribution and admin/accounts. The owners travel regularly to the East to source merchandise for the collections.
The owners set fashion trends, arrange the window displays and merchandising in stores.

Management accounts for the financial year ended February 2011 and the current year to July 2011 have been used to value the business and are available.

Property information

Real Estate:

Lease

Lease terms:

Each retail store's trading hours are set by landlords. Head office hours are 7.30 am to 4.30pm 5 days a week.

Each of the trading entities have different expiry dates but all have at least a year to run and will be renewed at expiry. All leases have option of renewal . Annual escalations are between 8% and 10%.

For all the premises guarantees for R180000 have been issued.

Leasehold rent:

R1,390,092 per annum

Location:

Durban - H/office and two stores, with another one in Jhb.

Premises details:

Stores in major upmarket malls betwwen 35-75m2, while the H/Office is 200m2 incl storage/working areas. Each of the trading entities have different expiry dates but all have at least a year to run and will be renewed at expiry. Annual escalations are between 8% and 10%

Size in square feet:

400m2 3 shops and H/off

Planning consent:

n/a

Business Operation

Expansion potential:

There are tremendous opportunities for growth by opening retail outlets in the major shopping malls in the Western Cape & Gauteng and increasing on-line shopping. There is no reason why the head office can't be re-located to another province.

The profitability of the business could be improved by opening new retail stores and attracting more purchasing through the web site, thereby increasing sales volumes with minimal increases in the head office fixed expenses.

Competition / Market:

There is strong competition in the ladies fashion and accessory market, however the owners have created a unique niche market with their off-shore sources of supply.

Reasons for selling:

The owners wish to retire

Trading hours:

Each retail store's trading hours are set by landlords.
Head office hours are 7.30 am to 4.30pm 5 days a week

Employees:

3x store manageress.(6-11yrs service); 6x sales ladies.(1-3 years service); 1x accounts clerk.(13 years service); 1x distribution clerk.(13 years service)

Years established:

33

Other information

Support & training:

Staff are fully trained, while owners will assist in training new owners and introducing to suppliers.

Furniture / Fixtures value:

R400,000 (included in the asking price)

Inventory / Stock value:

R900,000 (included in the asking price)

Relocatable:

This business can be relocated.