Attracting customers on foot and online
Eden Shoes shop at 110 Mt Eden Rd.
With an excellent range and high levels of service, the popular shoe shop at 110 Mount Eden Rd, has many loyal customers. These folk both walk in off the street and buy online, as Eden Shoes is supported by a growing e-commerce site trading 24/7.
A superb database, built up over years, which enables direct marketing at minimal cost. Now for sale through Daren Leng, a business broker with ABC Business Sales, the business has an asking price of $210,000, plus stock valued at about $165,000.
Leng says it could be run by a couple, or working owner and part-time staff.
Eden Shoes was opened in 2004 to help fulfil the growing demand in Auckland for quality branded shoes. It has been independently owned and operated by husband and wife team Paul and Fiona Ferris, who, after many satisfying years of operation, have now decided to relocate out of the area.
The couple’s dedication and customer focus have made Eden Shoes one of the top independent footwear retailers in New Zealand.
Mt Eden has been the perfect environment for a business of this type; it is a vibrant suburb with a great combination of culture, nature and style.
There is a fabulous village atmosphere where you can relax in one of the many cafes and restaurants.
The area has an array of speciality retail shops and galleries, being well known for local artists.
Significantly for a shoe shop, there are five of Auckland’s top schools, with a combined student roll of over 8500.
Paul and Fiona have been a perfect match for this friendly area, aiming to please by making it easy for the consumer to buy, while keeping the experience a happy and satisfying.
The business offers expert advice and information so that the customer is making an informed choice about their purchase decision.
The brands stocked are sourced through authorised distributors in New Zealand: Havaianas, Birkenstock, McKinlay’s, Dr Martens, Vans, Converse, Skechers, Diesel, Puma & more. Customers appreciate that they can acquire latest styles or order alternative product if their size or style is not available.
This attitude of service has long fostered repeat business and referrals.
Eden Shoes has an excellent range of shoes.
Many of these styles and brands are not available in provincial towns and villages of New Zealand, so folk in these places turn to the internet. Many of these customers prefer to buy off a New Zealand-based company so that if there are any issues they know they can return them, for example if they are the wrong size. Also, having a valid warranty on the goods is of great value to the customer.
Online sales account for about 15 per cent of total sales (YTD Jan 2016) compared to 13 per cent for the same period last year; this is a very solid web-based business.
Most of the courier charges are covered by the purchaser so profit margins remain high and the effort involved is minimal, basically print off the order, pack it up and then it gets shipped to the customer, payment is all done online.
Over the years the business has changed focus in terms of brands, gender and age; they feel that they have the right mix now.
This protects margins and provides an exciting range customers keep coming back for year after year.
They have focused more on core product ranges, ensuring that these are stocked the majority of the time.
They liaise with suppliers to ensure that they are able to get this stock, which is good for stock-turn.
The business is open seven days to service the needs of the Auckland community and operated solely by the two owners currently.
If only one owner was involved, then part-time staff would be required to the tune of 40 hours-per-week to fulfil customer service requirements for the business.
Eden Shoes has a four-year-lease which expires early December 2016 but the landlord is happy to sign a new owner up on a longer lease.
As this is in such a prime location it would be something that is highly recommended.
The rent is $49,061 per annum plus GST and this includes four dedicated parking spaces outside the store.
The size of the store is about 118sq m and offers sufficient space for retail and storage, with office, toilet and kitchen facilities to the rear.
The business provides very good return to the owners. With all of the fixed assets of the business included, as well as websites, Facebook page, systems and processes, it represents very good value.