Upmarket Lingerie Shop In Mornington Peninsula For Sale

Business description

Business Description Summary:

This high end lingerie retailer was established in 1986 and purchased by the current owner in 1996.

It has been located in the current premises since 1992.

Turnover at the time of purchase by the current owner was approximately $ 2, 500 per week and, under her control peaked at $9, 000 per week, just prior to the onset of the global financial crisis. Current sales average about $ 6, 000 per week.

The current owner has achieved an enviable lifestyle from this business.

Operations:

The business is open seven days a week from 10:00 a.m. to 5:00p.m.
It is the only lingerie shop in the town.

Market / Customer:

All sales are cash/credit card only. The business has developed a reputation over the years for quality and a wide selection of product. Consequently, there are many regular customers and they account for between 60% and 70% of sales. Many Melbourne based customers defer their lingerie shopping until their visits to to this shop because of the extensive range of merchandise and knowledgeable good service.

The customer base is from all age groups although a recent increase in the number of younger customers has been noticed recently.

The business does not undertake any marketing activities.

Products / Services:

The product range is underwear, nightwear and swimwear.

There about 70 suppliers but the main suppliers account for the major portion of sales.

Premises:

The premises are 50 square metres in extent and is located in the main shopping road in this iconic Mornington Peninsula township. In addition to the main shop fronting on to the main road, the premises also offers a storeroom and change rooms. A kitchen area is shared with another tenant. (At present the occupants are seldom present.)

The lease expires on 22nd July 2013 and there are 2 x 3 year options for renewal.

Current rental is $ 3, 600 per month and escalates annually at a rate of 4%.

Fittings consisting of retail display units, counters, carpeting, split system air conditioning, security and CCTV systems is valued at approximately $ 15, 000 and are included in the asking price.

Management / Staff:

The vendor works two and a half days a week. She is supported by three permanent part time employees who all have extensive employment history ranging from five to ten years. The employment history of the business has been exemplary and there have only been four staff changes in the time it has been owned by the vendor. Consequently, the staff are knowledgeable and fully able to do justice to the business during the absence of the owner.

***** ***** ***** ***** *****

To receive ADDITIONAL INFORMATION on this business, please contact Steve Lentin by clicking on the contact seller button below.

Property information

Real Estate:

Lease

Lease terms:

Expires July 2013 with 2 x 3 year options

Leasehold rent:

$43,200 per annum

Location:

Mornington Peninsula

Premises details:

See report

Size in square feet:

500

Business Operation

Reasons for selling:

Retirement

Trading hours:

See report

Employees:

3

Years established:

1986

Other information

Support & training:

As required

Furniture / Fixtures value:

$15,000 (included in the asking price)

Inventory / Stock value:

$60,000

Relocatable:

This business can be relocated.