Sofa And Sofa Bed Retailer | | Undisclosed Hampshire | | Sofa and Sofa Bed Retailer Ref.IK102 Location Hampshire Asking Price £75,000 | | BUSINESS FOR SALE ADVERT DETAILS ADVERT NUMBER : 49794
ADVERT IMPRESSIONS : 18,444 TIME(S) | | | | BUSINESS SECTOR: | Retail | | TRADE TYPE: | Home Accessories & Furniture Shops | | SALE: | Agent Sale | LEASEHOLD: | £75000 | | | | | | | | | | Add this business advert to your: | | | | | | | | | | | | | | | BUSINESS DETAILS: | Business profile:
Established for approximately fifteen years, this business was formed to meet the huge and growing demand for sofa beds that has developed since the mid nineties. One of the leading sofa and sofa bed specialists in the south east this business wishes to sell its very prominent and successful retail outlet to concentrate its efforts on manufacturing – continuing to supply the retail outlet after sale.
Located in a large showroom positioned on a major thoroughfare into one of Hampshire’s busiest commercial centres, the cornerstone to the success of this business is its ability to supply direct from the factory at a trade price - combined with the wide variety of product available – a major competitive advantage over comparable retailers. Customers can select from literally thousands of different fabrics and leather or supply their own fabric, if preferred. Many of the major fabric manufacturers are represented by this business including Morris & Co, Swaffer, Blendworth, Sanderson, Monkwell and Romo – many on a geographically exclusive basis. There are between thirty five and forty different styles of sofas and sofa beds always available, with a constant revamping of the range. Different sizes, different folding mechanisms, types of cushion, types of feet and the various ancillary items on offer, means literally tens of thousands of combinations!
Working very closely with the manufacturer, the new owners of this business will be in the ideal position of controlling the entire sales process ensuring not only that the customer can get exactly what they want – but also within time scales that the vast majority of retailers can only dream of – with many customers receiving models, even bespoke designs to accommodate different sizes for example, within seven days from order.
With its prominently located retail base and traffic to the outlet generated via the business’s informative and easy to navigate website, this business draws customers from a very wide geographical area. Most shop orders result in deliveries within a 30 mile radius, whilst web enquiries can generate sales from all parts of the UK.
This business offers a high level of personal service and customer care. As one of the few specialists in the sector, the business offers unrivalled expertise and assistance to customers in choosing the right sofa or sofa bed for their requirements.
With retail sales of approximately £325,000 for the current financial year, generating a gross profit of approximately £115,000 and a pre-tax net operating profit of £30,000, this represents an excellent opportunity to acquire an established, market leading retail outlet with secure lines of supply in a continuously expanding marketplace.
Key strengths:
Providing an ideal solution to space problems within households and with increasing property prices dissuading many from moving to bigger homes, demand for sofa beds took off in the mid nineties just as this business entered the marketplace. Demand has continued to remain solid, if not increase in the period to date. As one of the few sofa bed specialists in the South East, if not in the UK and with a strong web presence, this business is ideally positioned to take maximum advantage of market demand, offering as it does the widest range possible, high quality manufacture and fast delivery times – all at factory direct prices. Its bespoke service ensures that there is a solution for even the most demanding of customers.
Through a combination of cleverly targeted marketing and its high profile retail location, this business enjoys high levels of awareness and draws customers from a wide geographical area generating significant footfall on an on-going basis.
Key opportunities:
A new Owner, with fresh enthusiasm and dedication will contribute new, innovative ideas and outside influence to build on the excellent foundations that have already been established. There is the possibility of expanding the customer offering to incorporate an interior designs service, for example and with a firmly established reputation, consumer awareness of the brand could be leveraged further with the opportunity to expand into additional retail outlets outside of the current retail footprint.
Premises and location:
Offering approximately 2000 square feet of retail space, displaying between 35 to 40 sofa beds, this attractive outlet is situated on a very busy road leading into the centre of one of Hampshire’s busiest towns. The premises are air conditioned, fully alarmed and equipped with shutters across the full frontage of the building. There is ample car parking to the rear of the store augmented by additional free short term parking to the front of the premises.
The premises are leasehold at an annual rent of £27,000 per annum plus Rates of £9,000. There are three years remaining on the lease, however it is understood that this is renewable.
Trading hours:
The retail outlet is currently open between 10:00am and 5:00pm, Monday to Saturday and between 11:00am and 4:00pm on Sundays as well as opening on Bank Holidays.
Marketing and advertising:
This business enjoys high levels of customer awareness built up through very effective local press display advertising and the occasional radio campaign. Perhaps its most effective form of advertising, however, is the prominence of its retail outlet, acting as it does as a major advertising hoarding to the huge volume of traffic that passes its doors every day.
This business does have a very effective, well designed and informative e-commerce site that performs well within all of the major search engines for all appropriate search terms, consistently driving traffic to the retail outlet.
Financial profile:
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.
Retail turnover for the current financial year is approximately £325,000, generating gross profits of approximately £115,000 and a pre-tax net operating profit of £30,000.
The Asking Price of £75,000 is for a sale of the assets and goodwill in the business to include stock and the library of pattern books conservatively valued to be in excess of £35,000.
Employees:
This is a family run business with a Husband and Wife team responsible for the day-to-day running of the business with additional retail support available from part time sales staff.
Support and Training:
The Owners will provide full business familiarisation, training and handover to ensure a smooth transfer of the business.
Reason for sale:
Having established the retail outlet following its relocation to its current site approximately two years ago, the Owners now wish to concentrate on the manufacturing side of the business and pass on the retail side of the business to new Owners to build upon the significant foundations already laid. | | | | | | FOR SALE | | | | | REFERENCE: | IK102 / RightBiz | | | | | | Request more information about this business.. | | ENQUIRIES: | | | | CONTACT SELLER TO GET THE SELLERS DIRECT CONTACT DETAILS AVAILABLE TO MEMBERS ONLY | | | | | | | | | | | |
