GREETINGS CARDS, PARTY GOODS, GIFTS & STATIONERY SHOP

0 Sq Ft
£0
  • Ref: HW1537
  • Type: Crafts, Gifts, Cards, RETAIL
  • Availability: For Sale
  • County: Hampshire
  • Make Enquiry

Property Features

  • RESIDENTIAL SUBURB NEAR SOUTHAMPTON
  • RENT ONLY £140 PER WEEK - NEW LEASE
  • ESTABLISHED 16 YEARS - RETIREMENT SALE
  • TRADING IN A PARADE OF COMMUNITY SHOPS
  • CO-OP SUPERMARKET NEXT DOOR
  • WEEKLY SALES £900 @ 52% GROSS MARGIN
  • SUIT HANDS-ON OWNER/MANAGER

Property Summary

CARDS, PARTY GOODS, GIFTS & STATIONERY
RESIDENTIAL SUBURB NEAR SOUTHAMPTON
RENT ONLY £140 PER WEEK - NEW LEASE
ESTABLISHED 16 YEARS - RETIREMENT SALE
TRADING IN A PARADE OF COMMUNITY SHOPS
CO-OP SUPERMARKET NEXT DOOR
WEEKLY SALES £900 @52% GROSS MARGIN
SUIT HANDS-ON OWNER/MANAGER

LOCATION:

The shop occupies the end unit of a small community shopping parade comprising a Co-op supermarket, a hair salon and a Chinese take-away. There is free parking to the front and rear of the parade which sits in the centre of the densely populated residential area of North Baddesley. According to the 2011 population census there are more than 7,000 residents. A significant residential development is planned for a further 300 homes within the catchment area of the shop, offering future opportunities for the new owner to exploit. The business is located in North Baddesley, 3 miles to the east of the popular market town of Romsey and 6 miles north of Southampton. It was once famously home to TV entertainer Keith Harris and Orville the Duck, as well as former Southampton FC legend Matthew Le Tissier.


BUSINESS:

This greetings card, party goods, gifts and stationery retail business was established by the vendor in 2003 and has built up a loyal following not only of local residents but also from neighbouring towns drawn by its reputation for good, old-fashioned, personal service plus an extensive choice of good value greetings cards, popular stationery items, helium balloons and other party goods.
Leading brands stocked:
Greeting Cards
United Kingdom Greetings (UKG)
Greta British Card Company
Cherry Orchard
International Cards and Gifts (ICG)
Noel Tatt
Country Cards
Carte Blanche Greetings
Gifts
Joe Davis (Shudehill Giftware)
History and Heraldry

The business invests less than £100 per year in paid advertising with new customers generated from word of mouth recommendation, suggesting there is huge scope to grow the current volume of trade in a more pro-active manner. Engaging with social media would also represent an opportunity to promote the business as well as introducing e-commerce to sell gifts via eBay. A planned major private housing development nearby of 300 new homes locally will offer an increased market opportunity too. The vendors are looking forward to retiring once the business has changed hands.

BUSINESS PREMISES:
(all sizes are approximate & should be considered 'nominal'.)

The business is located within a purpose built block with lock-up shops at ground level and flats above.

Description Area m/unit Area sq ft
Retail Zone A 33.5 360
Retail Zone B 33 355
Retail Zone C 8.2 88
Staff Toilets 4.2 45
Total area m 78.9 848

Note: The sizes shown above are taken from the 2019/20 Valuation Office Agency Business Rates report prepared for the property.
BUSINESS PREMISES (contd):
(all sizes are approximate & should be considered 'nominal'.)

The premises are protected by a security shutter with a retractable sun awning over the glazed, maintenance-free shop front with single glazed casement door opening into the 715 sq ft retail area with the following fittings -
13 card display racks (each 4 feet wide);
5 end panels for card displays;
7 greeting card spinners;
3 gift display stands,
Various cardboard display racks for use as required;
Additional stands for haberdashery, gift mugs, Candy King sweets, Orchard Toys and scented candles.
The walls include hanging areas for display of helium balloons and party goods plus shelving for gifts and stationery. There are hanging displays for gift wrap. At the Customer Service Counter there is a cash register, UV note checker, IZettle card reader and mobile phone. There is a large helium cylinder for balloon inflation. At the rear of the shop (Retail Zone C according to the Valuation Office inspection) is a large racked storeroom with work top area, kettle and extensive floor to ceiling shelving. There is a lockable filing cabinet. Through another small storage area leads to the cloakroom with wash hand basin and newly installed W.C

Note:
Where items of equipment and appliances are mentioned, no warranty is given or implied as to their operational condition.
PRIVATE ACCOMMODATION:
(all sizes are approximate & should be considered 'nominal'.)

There is no private accommodation included with this opportunity

OUTSIDE:

There is free parking to the front and to the rear of the premises.

TENURE:

This is a leasehold opportunity with an 8 year lease in place which expires in March 2020. The landlord has indicated a new lease will be offered to the buyer subject to acceptable references. The lease contains a 4-year break clause and is protected within the terms of the Landlord & Tenant Act 1954 and therefore renewal rights apply. The current rent payable is £7,400 per year. There are 4-yearly rent reviews with the next review due in 2020.
Please be aware that the landlord will require references to support your application as a tenant and satisfactory bank and trade references will be requested. In addition, the landlord may ask for a rent deposit equal to 3 or 6 months dependent upon quality of references and status of the buyer.

RATES:
The rateable value of the business premises is £8,300 and as this is below the minimum threshold no rates are payable for 2019/20.
NOTE:
This information has been obtained either from the current rate demand for the property, by telephone from the local authority or by reference to the VOA website. The amount payable is the standard rate for the Rateable Value shown. In some circumstances this may vary, and therefore it is recommended that potential buyers make their own enquiries through the local authority to check the applicable rateable value and whether the rates payable will be the figure quoted above.

SERVICES:

We understand from the vendor that mains electricity and drainage services are connected to the property.

TRADE:

Accounts inspected by Adams & Co show turnover for the year ended 26 August 2019 of £45,669 with gross profits of £24,086 (53%). This compares favourably to the previous year's turnover of £45,138.
Please note that if a business is VAT registered, all figures exclude VAT.

STOCK:
The vendor informs us that the value of the stock varies throughout the year but averages approximately £17,000

HOURS:
Monday to Friday: 10.00 to 13:00 and 14:00 to 17:00
Saturday 09.30 to 17:00
Sunday Closed

STAFF:

The husband and wife owners work part-time two days a week supported by two part-time employees.

LEGAL FEES:

Vendors and Buyers each to meet their own legal costs, but if a lease is to be assigned from the vendor to the buyer they will also be expected to share the landlord's legal costs on a 50/50 basis. If a buyer wishes to negotiate a 'new' lease, they will be responsible for all the landlord's legal costs.
COMMENTS:

The vendors now wish to retire which has created an exciting opportunity for a new hands-on owner to build on the solid foundations laid down over the past 17 years. The vendors operate the shop on easy hours to suit their lifestyle suggesting there is scope to extend the trading hours. The vendors live locally and are happy to offer a full handover service to the new owners. The vendor is a qualified Public Service Accountant (retired) and would also be happy to offer financial management advice for the business if required.
Financial information will be made available to seriously interested purchasers after they have formally viewed the business.

LOCAL AUTHORITY:

Test Valley Borough Council Telno: 01794 527700

INTERNET:

First time buyers of a business may find this Government
information website Setting Up In Business helpful.
Potential buyers wishing to find out more about the surrounding areas are invited to 'search' under 'North Baddesley', where numerous sites are available for perusal, or specifically go to 'upmystreet.com' and use the post code 'SO52'.

VIEWING

If you wish to discuss this business opportunity in greater detail, or arrange an appointment, please call Nick on (023) 8025 3910

PLEASE DO NOT MAKE CONTACT DIRECTLY WITH THE BUSINESS