Description

This children’s specialty store chain has achieved outstanding growth and profitability. With lessons learned in location selection and best practices developed for store launches, the chain is poised to achieve continued growth via expansion throughout Southern California. The chain boasts an attractive margin, as well as exclusivity with some of the industry’s most sought after lines in its product categories.

The stores range from 4,000 to 8,000 square feet. While they boast stellar locations, their rents range $5,500 per month to $15,000 per month. All of the company’s furniture, fixtures, equipment (including delivery vehicles) and goodwill will be included in the sale. Approximately $300,000 in inventory will be sold at cost at close in addition to purchase price.

While the industry is competitive, this company has established a solid beachhead whose business model achieves higher profitability than is typical in its product categories. As a result of its convenient locations, unique brand offerings, pricing strategy, delivery services and regional access, this company has unique competitive advantages that should prove difficult to replicate.

With lessons learned in location selection and best practices developed for store launches, this chain is poised to achieve continued growth by opening additional Southern California locations. An opportunity also exists for the chain to bolster its direct to consumer online retail presence or to potentially wholesale to smaller operators that do not have congruent purchasing power or access to exclusive brands.

Posted Nov 17, 2016

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