Business description

Established Childrens shoe shop for sale. Established in 1990, and has been trading in current position since 1997.

Situated in Barkingside High Street, Ilford,Essex, the business has a large customer base who return to us for our level of service and choice we provide.

The shop has a very good local reputation and long standing in the community. We are currently have 2 contracts with private schools to be sole supplier for their shoes and footwear for their pupils. This can easily be expanded to further schools within the area. The shop is located within easy reach of several primary schools and also a few secondry schools.

We work closely with the local Podiatrist Clinic and have a large number of referals from them as we specialise in fitting children with shoes that require orthotics and splints. This is the only specialised service in the area.
We are a "Fitting Centre" and all our members of staff are highly trained and hence the customers come to us for advice on the type of shoes needed for any problems they might have or they call in to have their shoes checked to see if any new ones are needed.

A wide range of quality shoes are stock and not the "fashion" type shoes. Nearly all our suppliers are well known and are leather throughout. We do stock some canvas shoes and trainers, but again the quality is high and not just cheap and cheerful goods.
We stock a few premium ranges i.e Guess and Ralph Lauren and Marc Ecko, this has been trial ranges for the past year, and this has seen to be good ranges to carry, as there are no other stockist in the area for these brands as well.

We are also stockist of shoes for schools who have non-standard colour specifications, for example - red shoes,blue shoes and brown shoes. There is quite a demand for these as no other stockist is in the area for these coloured shoes.

Currenty the size ranges we stock are from Pram shoes for babies, to adult sizes 12 for men and 9 for ladies. The larger sizes have been introduced recently as there is a large call for these sizes as not only are childrens feet getting larger, sales are also increased through selling shoes to mums and dads!! This area could also be looked into and increased.

The current staff members include:
1 x full time manageress
1 x full time sales
1 x part-time (weekend)
1 x part-time (2-5.30 during week)

This level of staffing can be looked into, as at the moment the level of staff is required by the owner due to family commitments. The owner previously worked in the shop and so some of the staff members were not needed then.

Opening Hours -
Monday to Saturday - 9.30 to 5.30
Sunday - 10 to 4
(Sunday trading has proved very popular and so this is now normal trading hours)

Included in the lease is a 3 bedroom flat which is above the property. This is currently being resided in by the owner, but can easily be let out on the open market and rentable income would be a minimum of £800 p.c.m.
The flat has recently had a new kitchen and bathroom installed, and so decoration and furniture would be the only required to let the flat for income.

The shop has just signed to a new 10 year lease, with opt out clause for years 4 and 8. The flat is included in the lease but negotiations with the landlord could see the flat being handed back and a reduction in the rent.

There is scope within the business to either obtain further contracts within the local area and increase the business profile within surrounding areas, and there is also scope to inroduce further lines and areas within the business.

Currently there is only one other shoe shop in the area, but this has never affected the business and will not continue to do so as the business is more specialised and offers a substantially larger range than the other store. Quality and service is also a premium in the business and hence the returning customers, who do travel far and wide to buy their shoes from us.

There would also be the opportunity to increase the business sales through web selling and this would provide another outlet for the shop.

Trading Details -

Business Turnover - 2007 to 2008 - £ 269,354
Gross Profit - 2007 to 2008 - £148,887

Current rent - £33,000 p.a including 3 bedroom flat above
Rates - £10,000 approx


The business is being sold as a going concern, and although the business has been established for many years improvements regarding stock and contracts obtained can still be improved upon and would see sales increase even more. The opportunity to also use the premises for selling other goods could also be looked into if the desire was felt as the shop is situated in a very good position on a busy high street with good footfall throughout the day.

Fixtures and fitting are included and so the business can continue to trade as is for many years to come without the need to overhall any part of the building.

Stock would be sold at cost value, and the level of stock at the moment is at the level you would require to trade for a full season without the need to purchase anything more.

Orders are all ready in place for Autumn/Winter but again, this would be negotiated with the current suppliers if the orders were not required.

Contact with suppliers would be helped as much as possible with the current owner, and also training would be available for the buyer if they felt they would like to have a hands on position in the business and the owner would support this as much as they could.

OFFERS ON THE ASKING PRICE WILL BE CONSIDERED WITHIN REASON.

Property information

Property:

Leasehold

Lease terms:

There is a new 10 year lease which has just been signed. There is an opt out clause for years 4 and 8.

The 3 bedroom flat is included in the lease, but negotiations could take place with the landlord with the option of them taking back the flat and reducing the rent on the shop accordingly.

Leasehold rent:

£33,000 per annum

Living accommodation:

3 Bedroom flat above the premises is included in the leasehold. Currently this is being resided in by the owner, but can easily be rented out for a minimum of £800 p.c.m to increase revenue for the owner. The flat has recently been fitted with a new kitchen and bathroom and so only decoration and furnishings would be needed to be able to let the premises.

Location:

Barkingside, Ilford,Essex
High Street Location

Premises details:

The shop is on a corner plot of a side road along High Street.

Other information

Expansion potential:

There is potential to sell shoes via the internet and to also expand into an online shop.

At present 2 contracts are held with private schools to be the sole suppliers of their pupils footwear. These contracts are quite sucessful and other private schools in the area could be approached and further contracts could be obtained.

There is also potential to increase the business by getting in touch and arranging visits to the schools in the area who need specialised shoes, e.g. red / navy / brown shoes. Currently this is area is only done through word of mouths through the parents who visit us, and this has increased. There is currently no other major stockist in the area for these coloured shoes, and so the potential to meet with the schools and introduce the services of the business is there for the taking.

Competition / Market:

The only other shoe shop in the area is Clarks which is situated within the same parade of shops. This has never affected the business and will not continue to do so as the business is more specialised and offers a huge range specifically for children.

Support & training:

The owner is very wiling to train the new owner if required on all the aspects of the shoe business and also willing to train in the fitting of shoes. The manageress of the business is held in high esteem throughout the shoe industry and has great knowledge in the running of the business and also the shops needs with regards to the stock and fitting requirements. The owner will also introduce the new owner to the suppliers, who have had very good dealings with the shop for many years and will endeavour for a smooth transition period. The owner would request that certain members of staff are kept on with the new owner, as they have a very good reputation with customers and the owner feels that if they were to leave then it could damage the name and reputation of the shop. The owner would support the owner as much as they could and also ensure that the manageress would train and support the new owner as at present, the manageress has built up several leads with schools and customers and would continue to do so. The owner is confident that if the owner decided not to take an active role then the shop would continue to trade as it has been doing for many years under the guidence of the manageress.

Reasons for selling:

Currently the owners family is due to be expanded soon, and although the owner knows that the shop can continue to trade without any imput from them, it is felt that the time is now to concentrate on family life. The owner feels that a new owner could improve the sales considerably by taking some time to follow up new leads and contracts and to also introduce online selling. The scope is there for the taking but the owner cannot commit the time needed to pursue new avenues that are there.

Trading hours:

Monday to Saturday
9.30am to 5.30pm

Sunday
10am to 4pm

The business usually trades throughout the bank holidays in August as this is the prime trading time. Other bank holidays are discussed as and when with members of staff but if the business is open, then only 2 members of staff are normally required.