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Business for sale in United Kingdom - Ab169-online school wear retailer-south east

Asking Price: 125,000 £ Real Estate: Lease
Sales Revenue: 35,000 £
Net Profit: 1 £
Year Established: 2000
Employees: Not Disclosed
# of family members employed: Not Disclosed
Location criteria:
United Kingdom/City of London/South East
Relocatable

Business types:

Retail

Business categories:

Clothing & Accessory Stores ; Online Retailers ; Other Retail Trade

Business description

this is a young business with enormous potential, boasting very good profit margins and long term contracts with several schools. This business has concentrated on doing the hard work and has been designed to provide somebody with an opportunity to build on the initial success. For several reasons selling school wear online is a very obvious opportunity. Trade tends to be highly seasonal and the majority of orders are condensed into the school summer holidays, christmas and easter period. This makes operating as an online business, without rent and rates and perhaps full time staff a highly sensible option. Contracts have been won with three schools to date. These contracts tend to be for around a five year period. Obviously once a contract is in place, a certain level of guaranteed revenue will follow. This level of security is another factor in the sound nature of this business. The current owner has other business interests and is devoting a minimum amount of time to this business at present. The business offers next day delivery and is able to achieve this by currently holding healthy levels of stock. The business also visits the schools it works with during the school holidays to provide a personal service. Working with very low overheads the business liable to make very viable options on product pricing. The business is able to undercut traditional retail suppliers, whilst being able to achieve very strong profit margins. In terms of attracting more schools as new clients, there are several reasons for new customers to choose this business. The schools would not have to hold stock and therefore would not need to make a cash outlay. The school can have their own web portal to measure stock levels and to judge how the supplier is performing. Additional services such as designing new uniforms and managing the supply of second hand uniforms are also available. The business boasts that they are a genuine one stop shop for children’s uniforms. Key strengths: this is a business that is in the right place at the right time. With pricing currently being the most important issue in this sector, the business is highly competitive. The business is currently able to supply its service at prices around 20% less than traditional stockists. The business has a brilliantly straight forward website that is very simple and quick to use. Offering a next day delivery service and a very flexible returns policy are big advantages and are attractive features of the business that are resulting in high levels of customer satisfaction. The sourcing of a high quality product is another factor in the success of the business. Feedback on the quality of the product is very high and means that there are very few returns. The business adds school logos to the products itself ensuring that margins are improved. Key opportunities: this is a business with endless there are very few direct competitors in this sector. The online school wear market is still very immature and the opportunity to expand fast is obvious. Rather than supplying to a local market as would be the case with a traditional retailer, arguably the whole of the u.k. Market is up for grabs for this business. The business is currently only supplying very standard school wear products and there is an immediate opportunity to expand the range to include more sports products, accessories etc. Another sensible route to pursue would be to provide products to sports clubs around the country. There is a close synergy between the uniforms currently supplied and the team outfits that are used by many amateur sports sides across the u.k. Customer service: the business does everything possible to achieve high levels of customer satisfaction. From the high quality product that it supplys, to its next day delivery service, to its returns policy and indeed the ease of use of its website, the customer’s needs are put first. Visiting the schools during holiday periods is another example of the business doing everything possible to offer customers the service they want. This flexibility has helped to develop the business whilst also being another example of how good pr can have a positive effect on customer relations and the outlook for a business in general.

Additional information

Additional information: Not Disclosed
Support & training: The current owner is happy to provide a full handover and is prepared to act as a consultant after the sale is completed to ensure continuity of trading.
Reasons for selling: The owner of this business has numerous other interests and is looking to increase these interests which will take his business portfolio in other directions.
Financing available: Not Disclosed
Inventory / Stock value: Not Disclosed

Real Estate

Ownership: no
Lease: yes
Lease terms: Not Disclosed
Location: There are no premises offered as part of this sale. This business can be located anywhere in the U.K. Until the business grows further, it is even possible to run this business from a residential property.

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