Convenience Store In Rayleigh For Sale

Business description

Overview - This convenience store is located 50 miles east of Central London in Rayleigh Essex and has been owned by the Vendors since 1992. The business is a retailer of tobacco, cards, confectionary, stationary and papers/magazines, and has consistently generated a high level of income for the Vendors. The store is also a National Lottery retailer and offers dry cleaning drop/collect service. The Vendors are looking to exit due to retirement.


Location - The convenience store is set back off the corner of a busy set of cross roads in a residential area and benefits from car parking. There are two schools within a half mile radius and a bus stop opposite. Surrounding business include a fish & chip (recently opened in July 2010) and Chinese take-away, hairdressers, chiropodist, off-licence, computer hardware, domestic appliance retailer, green grocers, butchers and a wedding village. Rayleigh High Street is a mile from the store.
There is a good mix of customers in the local area, including young families, business professionals, and senior residents. A carvery pub is located within walking distance.


Competition - The business competes mainly with the local grocery store and off licence, but on a limited scale. The business offers a paper delivery service along with three other convenience stores in the local area but tends not to offer a service outside its radius.


Financials - For year ending 30 April 2010 – Revenue c£300,000, Gross Profit Margin c20%, Adjusted Net Profit c£52,000, national lottery commissions c£10,000.


Property - The business operates from leased premises and has 5 years left to run on its current 12 year lease. The main shop front occupies over 430 sq ft while the store room is over 180 sq ft in size. There is an opportunity to convert 90 sq ft of store space into the main shop front. The store room and main shop front are only divided by a stud wall. In addition to the lock up unit, there is also a self contained 2 bedroom flat above the store. The flat is currently sub-let by the vendor and can be vacated in short notice. The flat and lock-up unit are covered under the same tenancy agreement. To the rear of the property, there are two garages, one of which is used as an additional store room.


Paper deliveries - The business offers paper and magazine delivery to over 200 houses in the local area.


Suppliers - The business purchases products and services from several local suppliers and is part of a buying group.


Opportunities – The Vendors have run the business for profit maximisation and to fund their lifestyle rather than to grow revenue year on year. There are a number of opportunities for a new purchaser, some of which include the following:

•Longer opening hours to take advantage of the increased foot fall from the recent opening of the Fish & Chips takeaway
•Promoting paper delivery to an increasing aging local population
•Selling a greater range of products, including groceries, applying for a liquor licence, stationary, toiletries, OTC medicines, Paypall, stationary
•Expanding into the store room which will deliver an additional 90 sqft of retail space
•Better buying to increase gross margins – can achieve an additional 5% gross margin


Trading hours:
Mon: 5:30am to 6pm
Tues: 5:30am to 6pm
Wed: 5:30am to 7:30pm
Thurs: 5:30am to 6pm
Fri: 5:30am to 6pm
Sat: 5:30am to 7:30pm
Sun: 5:30am to 1pm

Property information

Property:

Leasehold