THRIVING INDEPENDENT SPORTS LEISURE RETAILER Melbourne
Boston Brokers is excited to offer for sale this exceptional sports retailer that has acquired a great reputation and is well respected within the industry through its high quality sport wear, loyal customer base and great contacts with leading suppliers. It is a highly rated sportswear seller in Australia with a near-perfect customer feedback rating.
Revenue is generated from the well-stocked retail shops supplying a vast range of quality branded and private label products from footwear, active wear, nutritional supplements, compression clothing, hardware, technology and fitness accessories. The stores also stock a range of running footwear and trainers with branded names including Adidas, Asics, 2XU, Garmin, Suunto, Saucony, New Balance, Brooks and INOV8.
Additional revenue is derived from e-commerce sales via the business’ user friendly website www.runstopshop.com.au (a Google Trusted Store) and various online channels including eBay. We feel this arm of the business would benefit from an injection of marketing to further promote awareness and increase sales. The business also has the potential to increase opening hours at store level to take further advantage of passing trade.
This is an incredibly strong platform to build upon and there is enormous potential to expand through more advertising on social media and an increased product range. The business is currently switching their e-commerce software which is expected to double turnover in coming 12 months. There is also potential to implement a retail website which will also significantly increase the yearly income.
– The business supplies the needs of the running fraternity throughout Melbourne with an enviable reputation for quality and value for money within this specialist field.
– The business reports a healthy turnover of circa $850,000 per annum with a gross profit in the region of 42%.
– The business prides itself on offering a knowledgeable and personal service
– Top busy locations with modern fitted premises
– The business benefits from moderate competition in this unique sector
– Included with the sale is a valuable domain name which attracts approx. 600 new visitors per day to the company’s exceptional website
– This is a turn-key purchase opportunity of a highly regarded business that is brought about by the planned retirement of its working director. A new buyer is presented with many possibilities to develop the business further
The current owner is looking to sell the business to an individual or company possessing the correct drive and enthusiasm to grow the business further. The opportunity would suit an existing retail or online sporting goods supplier who could buy the business as a bolt on acquisition. It would also appeal to other e-commerce businesses with a keen interest in sportswear. We highly recommend viewing this reputable business with development potential in these desirable locations.
In addition our client would also be happy to offer a handover period and would be willing to work on a part time basis for a new owner if required. Boston Brokers have been approached to find a suitable buyer for this brilliant opportunity.
Social Media – 14,000+ Instagram and 11,000+ Facebook followers
Email database – 8,000+
AAA+ marketing loyalty partnership programs – email database in excess of 1 million (including AGL and NIB)
We are advised leaseholds as follows:
South Melbourne (Head Office Store):
Lease: this lease expires (under demo clause) in March 2017
Rent: $5879.67 + GST PCM
Security Deposit: 1 Month’s rent
Lease: 6 years (increases at 4%)
Rent: $4583.33 + GST PCM
Security Deposit: 9 Month’s rent
Lease: 3 + 3 years (increases at 4%)
Rent: $3166.67 PCM (no GST)
Security Deposit: 4 Month’s rent
The business opens:-
Monday to Friday: 9.00am – 5.00pm
Saturday – Sunday: 10.00am – 4pm
The business is staff run and managed.
SUPPORT & TRAINING
Tailored to the requirements of the purchaser.
The business reports a healthy turnover of circa $850,000 per annum with a gross profit in the region of 42%.
EXPANSION AND FURTHER GROWTH OPPORTUNITIES
The current business structure and level of inventory supports the operation of the business being expanded or incorporated into an existing retailer’s portfolio and there is certainly the potential to scale up the operation significantly. Alternatively, the business can continue to be run as is to support complementary business activities.
The current owner commits an average of 15-20 hours per week to working on the business, for an average of 46 weeks per annum.
Further expansion of the specialist running offering may include relocation to a more prominent location with offices to support a larger team. These premises could be relocated to an alternative location in Melbourne to suit the requirements of the new owner.
An increased level of activity may also substantiate further investment into items such as a increased marketing / advertising, which would assist with both retail and online sales.
The potential to purchase other complimentary items in higher volumes from offshore suppliers has also been identified as a potential strategy for reducing the cost of purchasing the inventory. This would reduce the outlay required and therefore, increase the overall return on investment.
The proposed sale of this business includes the following:
Inventory (which will be provided at the time of discussion due to fluctuating nature)
Branding and Logo
Website and Social Media accounts
(Goodwill, intellectual property, systems and processes, competencies)
The above provides a summary each of the business components being sold, however, the final sale price and terms are open to negotiation with the successful purchaser.
It is important that the new owner of the business is able to continue to operate the business as a successful venture and rise to the potential that this opportunity presents.
There will be a thorough and conscientious handover with the new owner to ensure that the transition is a smooth one. Specific requirements and training are to be discussed in further detail as part of the formal handover procedure.
Desirable attributes of the new owner:
Interpersonal skills – the ability to liaise and communicate effectively with customers, contractors and referral partners
Management experience – the ability to manage specialised retail in a clear, concise and time effective manner
Problem solving skills – it is critical that the new management is able to resolve issues quickly and efficiently with the resources that are available to them.
Marketing skills – to drive the future growth and ongoing marketing opportunities
Industry knowledge – it would be preferable that the new owners had some experience in the running industry, or have these skills available to them in their team.
All interested parties will be required to complete a non-disclosure agreement.
Inspections of the business and current projects are available by appointment at a mutually convenient time.