Antique Shop and 2nd Hand Furniture Store

Area: Dullstroom
Reference: ZB37
Land Size: 0


R 2,700,000

Details

Established in 1998, this well-known antique shop is situated in the main road of this beautiful little town of Dullstroom in the Mpumalanga Highlands. It is situated in a very visible retail shopping centre with an historic architectural style. The centre includes a well-known art gallery and cheese shop. The sale also includes a second business that deals in second-hand furniture, operating from a different premises. These two businesses compliment each other very effectively as it allows for the purchase of entire households with all items being relevant to one or other of the businesses.

Accommodation

Extras

Commercial Opportunities

1. History and Background
Fully describe the business activities?
The first business stocks a large variety of antique furniture, silverware and large and small collectables. They also sell homemade treats, pies and soft drinks.
The second business buys and sells second hand furniture.
How long has the business been established?
The business was established in 1998.
How long has the owner had the business?
The current owner started both of these businesses.

2. Present Market
How are the clients attracted to the business?
To a large extent it is the reputation of the business and the fact that it has been in Dullstroom for so long and is well established, that keeps people coming back and back. But it is also very visibly located. So it is two-fold: walk-ins and return clients. It is the type of shop that visitors coming to Dullstroom, are looking for
The Second hand business does get a fair amount of support from the local community.
What Advertising/Marketing is carried out?
Facebook (over 7000 likes) which has been very successful.
There is a website but it is not utilized at all. The business is registered with Bid or Buy where it has earned a 100 percent rating and is an active outlet.
All the above media opportunities would be included in the sale.
What competition is there in Dullstroom?
None.
What are the seasonal trends?
Typically, Dullstroom businesses are not particularly subject to seasonal changes. Trade is reasonably consistent all year round with possible quieter periods mid-January to mid-February and in November. Within each month, the first and last weekends are possibly busier than mid-month but not significantly so. Dullstroom business relies mostly on the weekend visitors to the town and hence it is mostly weekend trade with weekdays being quiet.
The Bid or Buy outlet does mitigate this to a certain extent.

3. Financial
Is the business VAT Registered?
No
Are there up-to-date Management Accounts available?
Yes. Can be supplied subject to signing a non-disclosure agreement.
What percentage of the business is cash/credit?
Entirely cash or credit card.
How could the profitability of the business be improved?
Additional use of the website to increase sales and possibly source more stock.
What is the Return on Investment?
20 percent

4. Staffing
What is the total staff complement?
There is an overall manager that has been employed for almost four years, and who also works in one of the two shops. A second employee runs the second shop and when required, there are two ladies that work on a temporary basis.
These staff work on a set salary plus commission basis.
There is one employee that does the driving for deliveries and collections and does general work in both shops. A cleaning lady comes in every second day and is paid on a weekly basis.
There is a sub-contractor that has been employed for the last seven years, when necessary to pack up the contents of houses that have been purchased and transport same to Dullstroom.
How involved is the Owner in running the business?
Most leads for stock come in through the shops directly and a small percentage comes from calls to the owner. The owner is then very active in assessing the value of new stock. She does not work in the shops as such. She would be prepared to continue in a limited level in the acquisition of stock, but would certainly be happy to assist the new owner for a certain period in getting the experience necessary to take over her role.

5. Premises
The premises are rented on a month to month basis and are owned by the same landlord. The agreement is purely verbal at this stage but as a preferred tenant and with the long history of tenancy the landlord would definitely be prepared to sign a long-term contract, if required.
What are the trading hours?
Monday to Sunday from 09h00 - 17h00.
Strengths:
- This business was established in 1998 and is situated in a prominent location in the main street of this beautiful town in the Mpumalanga Highlands;
- Both are large shops with ample parking in front and good signage. The antique shop is in the same building as the gallery of a well-known artist and there is also FNB ATM close by;
- Located very close to a well-known pub/restaurant and the pharmacy;
- The staff are well trained;
- The 2nd hand store is also very prominently located.
Weaknesses:
- The new owner should be prepared to source stock but this would be done with as much assistance as is required from the current owner.
Opportunities:
- While additional advertising could be explored, and developed, it has been established that for the most part printed media is not particularly relevant.

Threats:
- None

6. Reason for Sale:
What is the reason for the sale?
Owner is relocating on a more permanent basis and furthering her other (primary) business interests. These do not conflict in any way with these two businesses.

7. Conclusion:
Why is this a good business?
This business has been trading for 20 years and is well known in the area. It is also the only antique shop in the Dullstroom area.

Please note:

The facts stated herein are correct to the best of our knowledge, and may be subject to change.
R 2,700,000
 

To book a viewing or to find out more about this property contact:

Kate Campbell
Office, Sales and Marketing Manager
Email: info@zestpropertygroup.co.za
Office: 013 254 0219 / 013 254 0376 9am-5pm (2pm on Sundays/Holidays)

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