PARTY SUPPLIES RETAIL SUPERSTORE IN SOUTH HAMPSHIRE

PARTY SUPPLIES RETAIL SUPERSTORE IN SOUTH HAMPSHIRE

TWO RETAIL UNITS COMBINED OFFERING 4,600 SQ FT

NEW LEASE AVAILABLE; OPTION TO BUY FREEHOLD

THEMED TABLEWARE & DECORATIONS

BALLOONS, BANNERS & COSTUMES

ARTS, CRAFTS & CAKE ACCESSORIES 

ANNUAL REVENUES Y/E 30 APRIL 2022 £724,313

GROSS PROFITS c.£349,724 (48%)

LOCATION:

 The business enjoys a prominent trading position on the High Street of a densely-populated suburb of a major south coast town with access to M3 & M27 motorway links.

This party supply Superstore trades alongside major National retailers like Iceland, Shoe Zone and Peacocks with the Main Post Office and Lloyds Bank close by.

BUSINESS:

Established by the vendor’s father 37 years ago, this profitable, family-owned and run party and hobby craft retail supply business is one of the largest of its kind in the United Kingdom. Operating within a 4,600 sq ft retail space on the High St of a major Hampshire coastal town, shoppers can choose from a huge selection of party supplies including tableware, balloons, fireworks, costumes, hats, sashes and banners and venue decorations. An on-site digital printing service is also available to personalise banners, sashes, venue posters and mugs. There is a dedicated range for baby showers. Hobby and crafts including knitting and haberdashery products, artificial or when in season, indoor and outdoor plants and Christmas trees. An online presence has recently been added and whilst sales are approximately just 5% of full year trade, there are encouraging signs of growth.  

BUSINESS PREMISES:

(all sizes are approximate & should be considered 'nominal'.)

The business operates in what were two adjoining retail shops now combined to create a total of 433 sq m / 4,659 sq ft of retail space. According to the Valuation Office measurements for Business Rates purposes, the retail space totals 433 sq m / 4,659 sq ft divided as follows:

Ground floor retail zone a  69 sq m / 742 sq ft

Ground floor retail zone b 68 sq m / 732 sq ft

Ground floor retail zone c 71 sq m / 764 sq ft

Ground floor remaining retail zone 225 sq m / 2,421 sq ft

TENURE:                         

 The vendors own the premises and will offer a new lease on favourable terms with an opening annual rent of £40,000. Alternatively, the freehold title is available with an asking price of £895,000 including the first floor accommodation.

PRIVATE ACCOMMODATION:

The property includes two self-contained flats above the retail premises: a 2-bedroom and a one-bedroom generating £1,200 and £900 monthly rent respectively.

BUSINESS RATES:        

 The rateable value of the business premises is £33,500 with rates of £8,803 payable in 2022/23. The domestic accommodation falls into Band A for council tax purposes. NOTE:

This information has been obtained either from the current rate demand for the property, by telephone from the local authority or by reference to the VOA website. The amount payable is the standard rate for the Rateable Value shown. In some circumstances this may vary, and therefore it is recommended that potential buyers make their own enquiries through the local authority to check the applicable rateable value and whether the rates payable will be the figure quoted above.

HOURS: 

Monday to Saturday          09:00 to 17:30

Sunday                               Closed

 Note:

Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition

TRADE:

Accounts inspected by Adams & Co show annual turnover for the year ended 30 April 2022 of £724,313 with gross profits of £349,724 (48%) and adjusted net profits of £182,150. Sales shown on VAT returns for the 12 months to 30 April 2023 show turnover of £675,372 for the year.

Top 20 products by sales value (£) Aug 2022 to July 2023:

Please note that if a business is VAT registered, all figures exclude VAT.

Note:

Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition

STAFF: 

The husband and wife owners work full time in the business supported by their son who manages the website, online sales, social media and digital artwork. The family also have 6 employees working with them on a full time and a part time basis.

STOCK:

The vendor informs us that the value of the stock varies according to season but averages £90,000.

LEGAL FEES:

Vendors and Buyers each to meet their own legal costs, but if a lease is to be assigned from the vendor to the buyer they will also be expected to share the landlord’s legal costs on a 50/50 basis. If a buyer wishes to negotiate a ‘new’ lease, they will be responsible for all the landlord’s legal costs.

COMMENTS:

The vendors’ decision to retire and put their business up for sale has created an ideal opportunity for an existing Party, Hobby & Craft retail business to secure a meaningful presence on the South coast.

Financial information will be made available to seriously interested purchasers after they have formally viewed the business.