Newsagents & Convenience Store With Accommodation In Norwich For Sale

Business description

Business Details
The particular highlights of the business are:
- A well established business.
- Good loyal clientele.
- Fully equipped business with favorable lease terms (see below).
- Turnover in excess of £500,000 with a net profit of £79,000 (see financial summary below).
- A business with great potential which has not been exploited because the owner has to travel from London to Norwich and mix the running of the store with a full time job.
- An easily run operation.
- Good loyal well trained staff.
- A good first time buyers business and ideal purchase for a family wanting to own their own store and take advantage of the living accommodation on the first floor.
- Low rent and rates.
- Very low overheads.
- Business enjoys superb local reputation.
- The concern provides newspapers (including 8 morning and 7 evening delivery rounds), magazines, off license, greetings cards, packed & fresh groceries, snacks, dairy products, confectionary, tobacco, the National Lottery and a PayPoint.

History
Phoenix Business Transfer Agents are delighted to place onto the market this Established & Profitable Newsagents/Convenience Store with Accommodation in Norwich which has been established since 1985. The business has been in the hands of the current owner since 1985 and he now wishes to sell due to ill health, family and other employment commitments.

Services
This very good business opportunity provides newspapers (including 8 morning and 7 evening delivery rounds), magazines, off license, greetings cards, packed and fresh groceries, snacks, dairy products, confectionary, tobacco, the National Lottery and a PayPoint.

Staffing
The concern employs 3 part time members of staff.

Owners Role
The owner is involved in the day to day running of the business.

Marketing
No marketing or promoting of the business has recently been undertaken as the business is well known.

Competition
As far as competition is concerned there is another similar business some 100 meters away but situated on the opposite side of the main road.

Market
The client base consists of local residents and high volumes of passing trade

Opportunities
The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings including local and internet advertising.
• Increasing the opening hours to include late evenings to exploit the full potential of the off license.
• Becoming more efficient with staffing levels.
• Working more hands on hours and saving on wages.
• With the introduction of a website and e-commerce.

Training and Handover
The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Property Details
The property is terraced, part of a parade of shops and is approximately 1000 sq ft. The front is branded with an attractive glass front. There is a CCTV system. The main customer service area is tiled/ carpeted with a middle aisle, shelving and racking to the walls. It is very well presented and is very conveniently laid out.

To the rear are two store rooms. There is a toilet and staff facilities.

First Floor
On the first floor there is a 3 bedroom flat with two good size double rooms, box room, kitchen and bathroom. If not lived in by the new owners it is considered that the flat could be sub let and generate a further £850 per month in rent.

External
To the rear are parking spaces for up to 4 vehicles.

Equipment with sale
All fixtures, fittings and equipment are included in the sale price and are valued at £17,500.

Financial Details
The present annual turnover is £520,000 with a net profit of £79,000. The present value of the stock is £54,000.
The potential turnover of the business within the next 2 years is forecast to reach £600,000 pa given the changes that are required to be made to the business. Full financial disclosure is available on request after viewings and the signing of a confidentiality agreement.
Please note Phoenix do not guarantee the accuracy of these figures which are in many cases estimated and are not verified. Please do not rely on the accuracy of these figures and seek professional help before making any offers. Phoenix will not be held liable for any inaccuracies in these figures or any other statements contained in relation to this business.

Disclaimer
These details do not constitute part of an offer or contract.
The statements and descriptions given are made without warranties by Phoenix Business Agents Limited who it should be noted have NOT verified the information provided. Purchasers should in all cases undertake financial due diligence using their own professional advisors before committing themselves in contract rather than relying on illustrations ,figures and information given on behalf of the seller.

Property information

Property:

Leasehold

Lease terms:

The original length of the lease was 15 years with 13 years remaining. The rent is £14,000 pa with a review in 2012. The lease may be renewable or negotiable for longer term if required. The rates are £5,000 pa.

Leasehold rent:

£14,000 pa per annum

Living accommodation:

On the first floor there is a 3 bedroom flat with two good size double rooms, box room, kitchen and bathroom. If not lived in by the new owners it is considered that the flat could be sub let and generate a further £850 per month in rent.

Location:

- Situated in the Eaton Park area of Norwich in Norfolk.
- Prominent location on main arterial road.
- Part of a parade of shops with some 5 units.
- Excellent free parking facilities in front of the store.
- Surrounded by a densely populated residential area with schools and other local amenities.
- High levels of passing trade.
- Good volumes of traffic and pedestrian flow.
- A commercially thriving area.
- Well linked with the A11, A410 and B1108.
- Norwich City Centre, The Norfolk Broads and Great Yarmouth all lie close by.
- Area enjoying much growth and re generation.
- A lifestyle area.
- Excellent local demographics for this type of area.

Premises details:

The property is terraced, part of a parade of shops and is approximately 1000 sq ft. The front is branded with an attractive glass front. There is a CCTV system. The main customer service area is tiled/ carpeted with a middle aisle, shelving and racking to the walls. It is very well presented and is very conveniently laid out.

To the rear are two store rooms. There is a toilet and staff facilities.

First Floor
On the first floor there is a 3 bedroom flat with two good size double rooms, box room, kitchen and bathroom. If not lived in by the new owners it is considered that the flat could be sub let and generate a further £850 per month in rent.

External
To the rear are parking spaces for up to 4 vehicles.

Size in square feet:

1000 sq ft

Business Operation

Expansion potential:

The concern has huge potential. In particular the turnover and profits can be increased by:
• Increasing the marketing activity with direct mailings including local and internet advertising.
• Increasing the opening hours to include late evenings to exploit the full potential of the off license.
• Becoming more efficient with staffing levels.
• Working more hands on hours and saving on wages.
• With the introduction of a website and e-commerce.

Competition / Market:

As far as competition is concerned there is another similar business some 100 meters away but situated on the opposite side of the main road.

Reasons for selling:

Owner wishes to sell due to ill health, family and other employment commitments.

Trading hours:

Monday to Saturday: 5.00 am - 8.30 pm.
Sunday: 6.00 am – 5.00 pm.

Employees:

The concern employs 3 part time members of staff.

Years established:

Established since 1985

Other information

Support & training:

The owner would be available for an extensive training and handover period for the benefit of the new owners if required. The owner would also be happy for an on the job observation period to assess the business prior to offers being made.

Furniture / Fixtures value:

£17,500 (included in the asking price)

Inventory / Stock value:

£54,000