Bay of Islands lifestyle is a shoe in
The Shoestyles store in Kerikeri.
Two Northland shoe retailing outlets, comprising a business that has been successfully operating for 35 years, are for sale within leased premises in the heart of the Bay of Islands.
The Shoestyles stores at 49 Kerikeri Rd, Kerikeri and 8 Selwyn Mall, Paihia, are being marketed by Daren Leng of ABC Business Sales, Auckland, for an asking price of $329,000 including fixed assets of $65,000. The asking price does not include the value of stock estimated at $425,000.
“The current owners are looking to retire, having been at the helm for 19 years, presenting an opportunity for someone to acquire a profitable business and enjoy an enviable lifestyle in one of New Zealand’s premier tourism regions,” Leng says.
“The business has reported a healthy and consistent turnover during the past six years with a high gross margin of over 43 per cent in 2014. Retail businesses like this don’t come to the market place very often. It makes exceptional profits, with further growth opportunities possible through the development of an e-commerce site.”
The shop in Kerikeri - the original Shoestyles’ store - has a floor area of 212 sq m and earns over 70 per cent of the business turnover of the business.
“It has an impressive glass frontage allowing for impressive window displays of the latest shoes on offer,” Leng says. “The shop in Paihia is a more compact store of 115 sq m and is situated on the corner of a boutique styled mall that is full of character with a really good frontage and entrance area. It is well positioned to take advantage of the local and fluctuating seasonal customer traffic.”
Leng says the stores are the only ones of their kind in the Northland region and attract customers coming from far and wide.
“The business has the website www.shoestyles.co.nz which is used to promote the business and display the array of shoes in-store but this is not an e-commerce site.”
The combined leases of the stores equate to $54,545 per annum, with the Kerikeri lease running to 2020 and the Paihia lease to be renewed in 2016.
The Shoestyles store in Paihia.
“The reason for Shoestyles’ success is that they offer a great range of men’s, women’s and children’s footwear along with bags and accessories from top brands worldwide,” Leng says. “These include Ecco, Merrell, Skechers, Ziera, Rieker, Clarks, Hush Puppies, Bresley, Cassini, Nike and Django and Juliette.The range includes casual, business, working, formal, boating, school and sports shoes. The shops stock jandals, flats, high heels and even skate boards.”
Leng says the owners have an excellent relationship with all of their suppliers which will assist in the transition to new owners and ensure a continuity of quality supply and trade.
“One of the most exciting parts of owning this business, apart from the sales and profitability prospects, is viewing all the different product ranges available from the suppliers and personally putting together a range of products that will meet local market needs and also appeal to visitors to the area. The supply chain is mainly undertaken by New Zealand companies ensuring the correct products are received as ordered in the colours and sizes required which minimises customer disappointment.
“The stores have a ‘look-book’ of up and coming ranges that generates a lot of interest from customers, helping them decide what to buy for the season ahead.”
Leng says the current owners have offered to spend time with the new owners of the stores during the immediate period following the sale of the business and also at the next two ‘buy-ins’ to ensure product continuity and recommend the selection of ranges for the Bay of Islands market.
“Having this back-up expertise should provide a great level of comfort for a new buyer,” he says.
Both stores have been refurbished to a high quality and to a modern standard over the past 10 years.
Interior of a Bay of Islands Shoestyles store.
The current staff members comprising two full-time employees, three part-timers and a casual worker, have been well trained and can manage the stores without the owner’s presence.
Leng says a new owner could increase turnover and profits with the introduction of an e-commerce website which would enable Shoestyles to sell products throughout New Zealand and also to customers searching online.
“This business sale presents a great opportunity for someone with the drive and passion to continue the Shoestyles success story.
“Shoestyles is a very profitable business that will offer its owner the luxury of a work-life balance within an idyllic Bay of Islands environment along with free time to appreciate what the region has to offer.”