Retailer Of Designer Led Furniture Interiors & Jewellery For Sale

Business description

Grown out of a wholesale operation, these very stylish retail outlets, both situated in prime locations in one of the affluent areas of Kent offer a very well chosen range of designer led furniture, home accessories, jewellery and gifts. Featuring an enticing mix of ceramics, lighting, soft furnishings, chinaware, glassware, French style furniture including wardrobes, dining tables, mirrors, costume and real jewellery, watches, artwork and a wide range of objets d’art – all offered at competitive prices, the Vendors have created a shopping experience that is almost unique to the area. The range, with some exclusives and heavily influenced by the backgrounds and heritage of the current Owners has been deliberately chosen to appeal to all demographics. The owners of the stylish homes, owned and occupied by high net worth individuals – of which there are a considerable number in the highly desirable residential areas that make up this business’s catchment area are as likely to find something to appeal as is the younger shopper buying a gift with their pocket money.

Grown out of a wholesale operation, these very stylish retail outlets, both situated in prime locations in one of the affluent areas of Kent offer a very well chosen range of designer led furniture, home accessories, jewellery and gifts. Featuring an enticing mix of ceramics, lighting, soft furnishings, chinaware, glassware, French style furniture including wardrobes, dining tables, mirrors, costume and real jewellery, watches, artwork and a wide range of objets d’art – all offered at competitive prices, the Vendors have created a shopping experience that is almost unique to the area. The range, with some exclusives and heavily influenced by the backgrounds and heritage of the current Owners has been deliberately chosen to appeal to all demographics. The owners of the stylish homes, owned and occupied by high net worth individuals – of which there are a considerable number in the highly desirable residential areas that make up this business’s catchment area are as likely to find something to appeal as is the younger shopper buying a gift with their pocket money.

Well established, having opened one outlet in April 2004 which was relocated to its current location in September 2006, the other more recently in April 2005, and located in areas that are becoming increasingly popular for shoppers, these high quality outlets, refurbished to a very high standard on opening, have become well known and have earned deserved reputations for their unique range and first class customer service. The very attractive showrooms are always fully stocked with items that are a little bit different. With the wide range this business carries, choosing an individual style has never been more pleasurable!

The cornerstone to the success of this business is its foundation on traditional retail values – with all staff endeavouring to do everything to maximise customer satisfaction. Staff are highly knowledgeable, well trained, friendly and very approachable, providing a very personal service including gift wrap. Not surprisingly this business can boast an extensive loyal customer base constantly returning to the outlet to see the latest introductions to the range. The stores are ideally positioned for a style of business that combines practicality with simple elegance and attracts a good, steady, regular clientele. The stores’ reputations are such that this trade is continuing to grow significantly with each year.

In just a few years this business has grown in size and stature to become a firm favourite within the local retail scene. With turnover for the twelve months to December 2008 of £831,000 generating gross margins of nearly 45%, this business represents an excellent opportunity for an investor wishing to acquire an established retail foothold in this lucrative retail sector or to expand their own business with additional outlets in a very desirable and fashionable area of Kent.

Customer service:

This high quality, stylish retailer has built an excellent local reputation through its commitment to the traditional retail values of high quality, friendly, approachable, customer service and high quality, unique products at realistic prices. Attentive without being ‘pushy’, customers are encouraged by sales staff to browse without feeling an obligation to purchase. Staff are dedicated to providing a high level of quality service and acknowledge that a satisfied customer is likely to be a repeat customer.

Key strengths:

This is a retail concept that is unique in its local marketplace, if not in a wider geographical area – and certainly not easy to replicate. Stylish and eye catching, the outlets are very attractive and inviting creating a very welcoming atmosphere and shopping environment. With a range that cannot easily be found elsewhere in the UK – the business has a number of exclusive arrangements in place - this business is rapidly developing a very loyal following by offering constant reasons for shoppers to return to the outlet to see the latest introductions to the range.

The outlets from which this business operates have been carefully and very deliberately chosen for their position, size and appropriateness for the range of merchandise this business sells. Ideally located in excellent trading positions, they benefit from high levels of awareness, passing traffic and footfall.

Concentrated in a tight geographical area, this business is easy to manage. A number of main suppliers have been in place for some time and there are excellent working relationships and excellent terms of trading in place with all of them. The outlets themselves are close enough geographically to generate economies of scale in operation without the outlets being too close to ‘cannibalise’ the trade that exists. Staff, paid slightly higher than the market rate, are well trained, knowledgeable, dedicated, loyal and very keen on high levels of customer service. Such are the processes and systems in place and such is the confidence the Owners have in the staff, the outlets are completely run by the staff on a day-today basis.










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, combined with a capacity to increase turnover, a new owner contributing fresh ideas enthusiasm and motivation will have every advantage of building on an excellent platform.
There can be no doubt there is tremendous scope to develop this business formula further and open additional outlets in other key locations in the South East and even throughout the UK.
The outlets themselves would benefit from more aggressive advertising and marketing and additional promotion. And although the business has a web site, this nominal presence could be developed into a fully fledged e-commerce site with fulfillment and dispatch co-ordinated through the business’s warehouse.
There is also the possibility of the warehouse becoming more of a retail entity, although permissions would be needed – particularly for larger items of furniture which the business currently has difficulty merchandising in its two retail outlets. Additional merchandising space is available at one of the outlets in a conservatory area which could be utilised very effectively adding additional capacity, subject to negotiation with the Landlord.

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 twelve months ending July 2007 was slightly in excess of £831,000 generating gross profits of approximately £374,000 and a pre-tax net operating profit in excess of £170,000. Turnover is split broadly two thirds and one third between the two outle

Property information

Property:

Leasehold

Lease terms:

Opened in April 2005, the lease runs through to 2015. Rent is currently £18,100 per annum (a rent review is due in April 2008) with Rates of £5,772.00 per annum.Rent is £16,600 per annum with Rates of £6,216 per annum. The premises were secured on a 6 year agreement in July 2007 which can be broken after three years.

Location:

The business operates from two high profile retail locations:

Outlet 1:

Approximately 1,150 square feet of retail space, this outlet is prominently situated amongst a number of synergistic outlets in a small parade of shops on a major thoroughfare in to one of Kent’s most attractive and busiest commercial centres. Despite being a busy road, generating high levels of awareness and passing traffic, there are a number of free car parking spaces on the road to the front of the outlet.

Opened in April 2005, the lease runs through to 2015. Rent is currently £18,100 per annum (a rent review is due in April 2008) with Rates of £5,772.00 per annum.

This outlet is currently open between 9.30 am and 5.30 pm excluding Sundays (10.00 am to 4.00 pm).

Outlet 2:

This shop began trading in April 2004 and re-located to its current location in September following major refurbishment. Ideally located in a small shopping precinct – with a number of stylish ‘boutique’ style outlets in the centre of the same town as Outlet 1, this precinct is rapidly becoming a destination location for the discerning ‘independent outlet retail shopper’ with ample parking in the municipal car parks nearby. Approximately 550 square feet of retail space in total across two floors, this outlet generates a very high turnover per square foot!

Rent is currently £12,500 per annum with Rates of £4,177 per annum. The premises were secured on a ten year lease in August 2006 with a Rent review due in 2011.

This outlet is currently open between 9.30 am and 5.30 pm Monday to Saturday inclusive and is closed on Sundays.

The business also currently rents a warehouse facility on a small business park ideally located to service both outlets. Approximately 2,000 square feet – with the possibility of adding a mezzanine, if required, Rent is £16,600 per annum with Rates of £6,216 per annum. The premises were secured on a 6 year agreement in July 2007 which can be broken after three years.

Business Operation

Competition / Market:

Since opening in April 2004, this business has done no formal advertising whatsoever, relying on its high profile locations and the most effective form of marketing, word of mouth recommendation, testimony to the excellent reputation this business has for its unique, high quality product range and customer service. Awareness is also built through its very impactful carrier bags which act as mobile advertising hoardings within the town. Like other retailers this business has two sale periods each year – but it sticks to the traditional periods of January and the end of August, never having been in a position of needing to run a mid season sale.

Reasons for selling:

Ex-pats working in the UK, our Clients wish to return home.

Employees:

The two joint Owners, a Husband and Wife team are responsible for the overall management of the business taking responsibility for the Operational side of the business and the Buying and Merchandising, respectively. The day-to-day running of the retail outlets is in the hands of the Retail Sales staff which includes a Manager, three full time and three part time Sales Assistants – all of whom switch between the outlets as required.

Other information

Support & training:

The Vendors will be available as appropriate after the sale to ensure a smooth transfer of the business to new Owners.