Retail

Electronics & Appliance Stores ; Music Stores

Well established TV, Video, Hi-Fi and DVD outlet – retail sales, rentals, repairs and installations Ref no: CF033 Location: S W London Confidentially offered for sale Asking price: £150,000 Asking price includes: Turnover consistently in excess of £80,000 Gross margins of approximately 62% Profits available to the Owners of the business of approximately £30,000 Significant retail and rental stock For over thirty years, this business, a member of RETRA (The Radio, Electrical and Television Retailers Associations), has built a considerable reputation in relation to premium quality entertainment equipment. TV, Video, Hi-fi and more latterly DVD, this business sells it, rents it out, installs it and repairs it! With excellent relationships with wholesale distributors, this business makes healthy margins from its retail sales however it is increasingly from repairs, in which it has virtually a monopoly situation within its local area, where the vast majority of this business’s income comes from, carried out in its very own workshop by experienced and qualified engineers, working on a part-time, freelance basis. Its rental income is no less impressive – with approximately 250 units currently out in the field amongst a mainly – but not exclusively, elderly customer base, paying anything between £8 and £30 per month – some as high as £80 per month, to be able to keep up with the latest technology without the need for the very sizeable upfront capital costs that would otherwise be involved. Payments are made either when regularly visiting the shop or by Standing Order, In addition, the business is increasingly profiting from installations work – as more and more consumers purchase from the lower cost High Street retail chains and sheds that don’t provide the installation back up to ensure a new purchase functions in conjunction with all the other entertainment equipment a purchaser may have within the home. This business also caters for specialist audio/visual installations in the home or commercial premises, and even makes money via its recycling service, charging a small handling/disposal fee for removing and recycling unwanted equipment. Throughout the many years of its operation this business has become a firm fixture within its local community. It operates from very well suited rented premises in a prime secondary retail location and benefits from high levels of customer awareness primarily due to its longevity. A good proportion of its income comes from the public sector, with which this business has developed excellent ties – with local Councils using its sales, repair and rental services within its children’s and old people’s homes as well as local hospitals and Housing Associations. This is a very well established business which has performed consistently well throughout its many years of operation. With turnover in excess of £80,000 generating profits available to the Owner of the business of approximately £30,000 together with a significant rental asset base and retail stock, this business represents an excellent acquisition opportunity for another business currently operating within the entertainment goods retail sector or alternatively an engineer currently active in the sector looking to acquire a base for future growth.

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