Retailer Of High Specification Outdoor Adventure For Sale

Business description

‘Clicks and mortar’ retailer of high specification outdoor adventure, travel and sports equipment including a retail outlet in Norfolk plus two e-commerce sites

Built from the foundations of a family business selling camping equipment in the 1960’s with retail acquisitions and the development of high specification e-commerce sites along the way, this business is very well established as a leading provider of outdoor adventure, travel and sports equipment.

Based in a prime retail location in Norfolk, one of the top ten shopping destinations in the UK, together with two high performance websites, this business retails an extensive collection of the highest quality equipment available. From high quality performance adventure clothing and equipment including waterproofs and warm and dry clothing and footwear right through to tents, climbing equipment, rucksacks, sleeping bags, stoves, pan sets and utensils – even GPS navigation equipment and trekking poles, you name it, for outdoor adventure this business supplies it. Boasting some of the most competitive prices and unusually for a ‘clicks and mortar’ style operation, prices that are the same on the web as in its shop, this company retails virtually all of the top brands – with a range to suit most budgets.
With so many years experience in the adventure equipment retail sector and a well trained, very knowledgeable team, this company has established an enviable reputation for reliability and competitiveness as well as a friendly service. It has well established relationships with its supplier base which has helped to ensure that product quality and availability is never compromised and that customers receive the highest possible quality of service. As a result this business consistently achieves high levels of customer satisfaction. This high standard of service is matched by the operation of the business itself achieving very prompt delivery of product from its e-commerce operation. If it’s on the website it’s in stock with order fulfillment direct from its retail outlet - and if it isn’t readily available, then the business will do whatever is required to get it. As a result of this very high level of customer service this business has developed a strong and extensive loyal base of customers throughout the UK.
This business is widely acknowledged as an excellent brand name within its sector. With projected turnover for the 2009 calendar year of approximately £1.04m generating gross margins of approximately 34%, this represents an excellent acquisition opportunity for an existing operator to extend their presence in the adventure, travel and sports equipment retail market or for a new entrant to establish an excellent foothold in the sector by acquiring a business with a strong retail and e-commerce base with tremendous potential and a history of strong growth.

Key strengths:

The business offers an excellent, extensive range of high quality products with virtually all of the major brands as suppliers. It is operating in a sector which is enjoying strong growth in popularity. In addition to increasing levels of new customers the continual advances in technology ensure repeat customers buy upgraded equipment, accessories and clothing. As a result the business can demonstrate an excellent track record of historical sales.

This business is an excellent brand name within its sector and has combined both an excellent retail base - located in a good, prominent location in one of the most popular shopping destinations in the UK with a strong e-commerce presence. As a result this business is accessible by all sections of what can be described as quite a diverse target audience – in age, demographics and geography.

The prominence of its retail location is matched by the natural listings of its two websites in all of the major search engines for outdoor adventure equipment, appearing on the first page for the brand name, Berghaus, for example. Its highly sophisticated IT systems ensure that only merchandise that is currently available appears on either of its e-commerce sites.

Having been operating within this marketplace for a number of years this business possesses a strong image and enjoys high levels of awareness amongst its target audience. It has excellent trade relationships and a strong supplier base – with virtually all of the major accounts represented. Having successfully fulfilled a huge number of web based transactions throughout its years of operation and having established an excellent track record in customer service this business is trusted by its customers to deliver high quality goods at very competitive prices.


Key opportunities:
Operating in a growing market, there is an outstanding opportunity to build on the existing business levels and customer base of this company. With a strong demand for the products retailed by this business, a new owner contributing fresh ideas, enthusiasm and motivation together with a little investment will have every advantage of building on an excellent platform.

The current Owner of this company believes the future of the business lies in the further development of web sales and with the right investment feels turnover through e-commerce could easily top £2m, up from its current level of approximately £520,000. Operating in a sector where ‘if you don’t have it, you can’t sell it’ applies more than most, investment in additional stock and particularly in securing one of the major brands currently not listed would have a significant impact on turnover and profitability.

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.
Projected turnover for the 2009 calendar year is approximately £1.04m generating gross margins of approximately 34%.
The Asking Price of £125,000 is for a sale of the assets and goodwill in the business to exclude the stock at valuation.

Property information

Property:

Leasehold

Lease terms:

The premises are leased with the current lease due to expire in March 2010, however the current Owner of the business believes there will be no difficulty renewing the lease. Rent is approximately £35,000 per annum. Rates are approximately £16,400 per annum.

Location:

The retail outlet:

This business operates from a prime, secondary retail location of approximately 1,850 square feet including retail, storage and e-commerce fulfillment. The premises are leased with the current lease due to expire in March 2010, however the current Owner of the business believes there will be no difficulty renewing the lease. Rent is approximately £35,000 per annum. Rates are approximately £16,400 per annum.

The store is open between 9.00 am and 6.00 pm Monday to Saturday inclusive and between 10.30 am and 4.30 pm on Sundays.

Staff comprises a General Manager, an Assistant Manager, a Web Administrator, 6 full time Sales staff including two who assist with web order fulfillment and a further 4 part-time Sales staff, called upon as required.

E-commerce:

Site 1:

With dedicated hosting, this site is a content managed system built around a bespoke e-commerce platform. Integrated with Khaos Control CRM software, site features include xml exports, froogle feeds and voucher codes.

Site 2:

Again with dedicated hosting, this site is a content managed system which has been modified from an off the shelf package ensuring ease of updating. Also integrated with Khaos Control CRM software, site features include live stock control.

Both sites can be updated via their own back-office systems requiring nothing more than basic knowledge of html programming and Photoshop. Website performance statistics and transaction data analyses are available via Google Analytics.

For the half year ending June 30th 2008, the web stats for the two sites combined show:

• Visits: 777, 285

• Absolute unique visitors: 590,857

• Page views: 2,581,011

• Average page views: 3.32

• Average time on site: 00.02.15

• New visits: 71%

Other information

Competition / Market:

With a very well established retail outlet benefiting from high levels of awareness from passing traffic this business invests little in local area marketing apart from very low budget activity targeted at Universities and local schools involved in the Duke of Edinburgh scheme. Its main marketing activity is web based maintaining high listings in all of the major search engines through good use of search engine optimisation techniques for all appropriate search terms as well as regular e-mailings, co-funded in many cases by suppliers to its highly active and well maintained database of approximately 90,000 regular customers.

Support & training:

The Owner will provide full business familiarisation, training and handover, covering all aspects of the business, to ensure a smooth transfer to new Owners, although since the day-to-day operations of the company are undertaken at retail outlet level it is not envisaged that this will be required to be extensive.

Reasons for selling:

The current Owner wishes to concentrate on other business interests and feels the time is right to pass the business on to new Owners to take this company on to the next stage.