Retail Jeweller In West Sussex For Sale

Business description

Traditional, independent retail jeweller with good levels of repair turnover

Established in the 1960’s and in the hands of the current owners of the business, the second generation of the family, since the late 70’s, this traditional outlet is recognised locally as a high quality jeweller specializing in medium to high end pieces, engagement rings, wedding rings and watches together with modern and traditional gold jewellery from leading manufacturers.

The healthy turnover from sales of new jewellery is matched almost equally by its repair and restorations service, a clear differentiating factor from its competitors and a major buffer against the more mainstream High Street outlets. The cleaning and repairs to most jewellery items, re-setting gemstones; soldering broken chains, re-sizing of rings, replacing stones, cleaning mechanical watches and the replacement of batteries for higher quality watches, for example - are all carried out by this business. Watch repairs and some jewellery repairs are undertaken in-house with additional support available from an outside setter. The company also outsources engraving work which is another important source of income for the business.

Renowned for offering good ‘old fashioned’ customer service and held in very high regard by its competition, this business is committed to making the purchase of rings, watches, jewellery, clocks and silverware a pleasurable experience for its customers with its wide range of fine products, beautifully displayed in traditional, characterful premises. Knowledgeable, friendly, professional and helpful staff are always on hand to assist customers with their choice and answer any queries they may have relating to the merchandise available.

This business benefits from high levels of awareness and a loyal customer base having been a constant presence in the centre of this busy town in West Sussex for almost fifty years. Such is its longstanding reputation, this business is now serving the second and even third generations of its original customers constantly drawn by an excellent combination of high quality merchandise, competitive prices and high standards of customer service.

With turnover of approximately £296,000 generating a gross profit slightly in excess of £148,000 and a net operating profit of approximately £82,000, this is an excellent opportunity to acquire a well established independent jewellery retailer and should appeal to an existing traditional jeweller looking to expand their existing operation or to a private purchaser – particularly one with ‘practical’ skills applicable to jewellery or watch repairs - looking to establish a foothold in the marketplace.

Fixtures and fittings:

The outlet is fully equipped with a comprehensive industry and insurance approved Redcare alarm system, a CCTV system, a Chubb safe and secure shutter doors to the front and rear. The shop is well fitted with display units and a window display to the usual retail jewellers’ standards.

The workshop includes an ultrasonic polishing machine for watch cleaning, machines for steam cleaning and engraving as well as a lathe and a comprehensive range of hand tools and facilities to carry out repairs and maintenance of watches and jewellery.

The business operates fairly basic administrative systems reflecting the emphasis on retail sales and repairs which is the business’s priority.

Key strengths:

This is a well managed and successful business with strong servicing and repair sales. It generates an overall turnover of almost £300,000 and a pre-tax net operating profit of almost £85,000.

Well established, with approximately fifty years of successful trading, this business has developed excellent relationships with its suppliers. It offers a good range of merchandise at competitive prices. It provides a high level of customer service from very well trained, helpful, knowledgeable and professional staff. The business is well renowned for its high quality repair service.

Located slightly outside the main shopping area of the town and therefore enjoying low overheads, the business is well established and enjoys high levels of awareness, with the traditional look and feel of the premises playing no lesser part in meeting supplier and customer expectations. Over the years the business has built an extensive and loyal customer base – many of its customers consider this business to be their family jeweller.

Key opportunities:

There is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for this business's products and particularly its repair service, combined with a capacity to increase turnover, a new owner contributing fresh ideas particularly in the areas of marketing and advertising will have every advantage of building on an excellent platform.

Certainly a more concentrated focus on sales – through advertising and marketing, particularly in relation to its repair service would have a significant impact on turnover and profitability. The business does not currently have a website, for example, which could enable the business to extend its presence outside its traditional and loyal customer base.

With the workshop facilities on-site, the business would make an excellent acquisition for a clock or watch maker, a silversmith, hand engraver or even a pawnbroker, none of which are significantly represented in the town in which this business is located.

Financial information:

The business is offered for sale as a going concern. All financial discussions will take place directly between the vendor and all interested parties under the auspices of Turner Butler.

Turnover for the financial year ending March 2010 was approximately £296,000, generating gross profits of approximately £148,000 and pre-tax net operating profits of approximately £82,000.

The Asking price of £120,000 plus net assets is for a sale of the shares in the limited company. Net assets at the time of valuation were approximately £209,000.

Property information

Property:

Leasehold

Location:

This business occupies a secondary retail location just outside the main shopping areas of this busy West Sussex town. Close to a large car park and very well established, the business enjoys high levels of customer awareness and good levels of footfall.

Business Operation

Competition / Market:

Very well established in its location and benefiting from high levels of residual awareness, the business invests little in marketing and advertising. A high proportion of the business's revenue results from its excellent reputation for quality and service and strong word of mouth recommendation.

Reasons for selling:

This is a genuine retirement sale.

Trading hours:

The business currently opens six days per week, between 9.00 am and 5.00 pm and is closed half day on Thursday and all day, Sunday.

Employees:

The owners, a husband and wife team, are responsible for the day-to-day operation of the business, supported by three part-time sales assistants working hours to suit.

Years established:

1960

Other information

Support & training:

The current owners will provide all necessary training and introduction to all relevant supplier contacts to ensure a smooth transfer of the business to new Owners.