Wholesaler And Retailer Of Australian And New Zealand For Sale

Business description

Well Known Importer, Wholesaler and Retailer of Australian, New Zealand and Canadian Products

This well known and respected business retails goods from Australia, New Zealand, South Africa and Canada and was established in 1994, with roots dating even further back. After trialing imported products to fairs and events around the UK, the vendors decided to expand by acquiring an established retailer of Australian gifts in Central London.. The previous retailer had history in selling goods on site at the Australian Embassy, and then via a shop unit in the West End of London. After taking over this small operation and trading from the original shop unit for a number of years, the business re-located to the present unit in 2003, from where they have been successfully operating since that time. The husband and wife vendors brought over 20 years of experience working with Australian Government representatives in London, and decades of knowledge in international logistics to establish a unique offering in the Capital and the wider UK marketplace.

After originally focusing on supplying Australian foodstuffs, gifts and unique products to a growing customer base, the business took opportunities over the years to expand the portfolio of product lines to include lines from New Zealand, South Africa and Canada. The business imports directly and buys via other wholesalers a huge range of specialty branded foods, drinks, gifts and clothing items.

With links at a high Governmental level from the outset, the business has enjoyed enviable relations with key diplomatic figures in the UK, which has provided un-rivaled recommendation and public relations opportunities along with credence to the wider population of ex-pat customers that make-up a high proportion of customers seeking out the shop. The shop does not require much seeking out though, as it is located in a very high profile Central London tourist area, with a large footfall of international customers and London locals.

Currently food products make-up around 70% of revenue, with the majority of turnover derived from the supply of Australian products. All products are detailed on the comprehensive website which has excellent back office integration with an intranet that provides real time pricing, stock control and business administration.

The business operates a central warehouse unit which provides support to the main retail outlet and also completes both web orders from private clients and meets demands from wholesalers, restaurants, clubs and bars who use the business to source goods for their clients. The wholesale business has been meeting orders from clients across the UK, Ireland and Europe.

Business Development

This established business provides the perfect platform, with its well developed infrastructure, for an ambitious entrepreneur or a small to medium company to expand its export growth instantly into the huge and sophisticated markets of Europe.

The business has invested in two principal marketing channels over the past twelve months, these being the wholesale dimension with the employment of a wholesale manager and the investment in a complete rebuild of the Company website.
The Canadian market is showing strong signs of growth with new customers constantly coming along, including Americans.
The business is approached on a regular basis by Austrade – the Trade and Investment arm of the Australian High Commission in London – as well as independent producers, with products for import and distribution. Australia PLC, as a brand, is highly regarded in the UK and European markets, for high quality and good value for money. Thus, the time is right to bring together a portfolio of all the many, good products, under one umbrella.

Equally, there is the opportunity for an expanding Company to get into European markets with one easy step.

The Vendors are willing to provide a minimum of twelve months consultancy to help the new owner realise all the benefits the business has to offer.

Equipment:

There are fixtures, fittings and racking throughout for the storage and display of all types of goods, along with fridges and freezers for perishable goods. There is an ‘ECR’ touch screen cash regsiter, which is linked with the real-time pricing / stock control intranet. The business accepts credit-card payments at the till. The business operates a core website, with four separate store fronts for each country’s range of products. The intranet / back office system is available for remote access by the vendors allowing for ease of management whilst away from the office.

The on-site management office has all that one would expect from a professional business operation of this size, with integrated telephone system, numerous PC’s, Server, Laser printers, fax machine and peripherals required to operate a busy retail and warehousing business. Financial accounts are held on a “Mind your own Business” software package.

Customer Service:

Although the business enjoys limited competition, they certainly do not rest on their laurels. All customers enjoy a great shopping experience from entering the premises, or contacting directly via the website or telephone, to walking away with their sought after goods. Staff are friendly, professional and knowledgeable, and represent the company in the best light at all times. This commitment, is shown by the level of weekly repeat business and constant stream of customers arriving from recommendation, whether from a new visitor to the British Isles, or from the High Commissioner!

Key Strengths:

The location is obviously a key asset to the business, as are the long-term supplier relations, lengthy trading history and levels of awareness, recommendation and referral from people who know there is only one-place in Central London to find all their Australian, New Zealand and Canadian products. The historic relations with government officials and High Commissions, originally developed by the vendors, is a strength without comparison which provides a great level of continual support both in terms of clientele and suppliers looking to export to the British Isles.

The logistics, comprehensive intranet and integrated back office, along with the streamlining of all processes allows for instant real time analysis of business operations and offers exceptional opportunities for future growth on-line and into other product lines.

Financial Information:

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

Turnover circa £885,000 per annum
Gross Profit circa £303,000
Adjusted Net Profit circa £55,000
Assets of around £100,000
Stock of around £120,000.

Property information

Property:

Leasehold

Lease terms:

The annual rent is circa £42,000 per annum, with business rates circa £8,400 per annum.

Location:

The business occupies a ground floor shop unit with basement in Central London. The main retail area is approximately 750 sq ft on the ground floor. Downstairs there is a small courtyard under the lease, along with a storage area and 2 small management offices of around 150 sq ft and 200 sq ft. There is also a small staff area with food preparation facilities downstairs. The annual rent is circa £42,000 per annum, with business rates circa £8,400 per annum.

Business Operation

Expansion potential:

This business has exceptional expansion opportunities. Revenue has already nearly doubled since the implementation of the comprehensive website in 2007 detailing all products available with online ordering facilities. There are great opportunities to open new outlets with the well known trade name, or build the business further on a franchise model with like minded individuals looking to provide the products to their local growing community.

As the business is responsible for directly importing a large range fo key goods, and as they already have warehousing, logistics and corporate clients on the books, there is ample room to greatly expand the wholesale operation with limited impact on overheads.

Above and beyond these routes to further sales, the vendors have already began a project that appeals to the current customer base with a new offering to the UK market. The vendors are in discussions with a number of key partners, and are happy to discuss handing over this facet to the business to the new owners of the core company, should that be of interest to all parties.

Competition / Market:

The company has exceptional word of mouth amongst the demographic of regular customers and new visitors to the business. There is also a concerted effort to maintain relations with those who are involved at a senior level with international relations between the source countries and local community. In support of these efforts, the business has a comprehensive web presence with a number of independent store fronts. The internet site although well developed is now primed for further search engine optimisation and internet marketing. The company takes out regular adverts in trade press and targeted lifestyle publications, and accommodates contra deals offering sponsorship and deals with suppliers of travel and media. The company has sponsored high profile events with branding and supply of food to the Australian Football League event at the Oval London. There are also ongoing commitments to supporting charities and supplying raffle prizes to good causes.

Reasons for selling:

After many successful years building the business, the husband and wife vendors are looking to enjoy their retirement and the fruits of their labour by spending time travelling and experiencing a different work / life balance.

Trading hours:

Monday – Friday: 10:30 am – 6:30 pm
Saturday: 11:00 am – 6:30 pm
Sunday: 11:00 am – 5:30 pm

Employees:

Alongside the vendors of the business who are responsible for day-to-day operations and business administration between them, the business employs a full-time General Shop Manager, a full-time Shop Assistant and a full-time Warehouse Manager. In support there are 5 part-time shop assistants, and a sub-contracted book-keeper.

Years established:

1994

Other information

Support & training:

The vendors are keen for the business to be handed over on a successful basis, and will agree to a period of handover for continuity of operations.