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Newsagency, Convenience and Gift Store

$2,100,000

Newsagency, Convenience and Gift Store
Price $2,100,000

Description Listing #54

Newsagency, Convenience and Gift Store

Unique and profitable retail business consisting of a Newsagency, Convenience Store and Gift Store located at the RBWH Herston. Long lease and secure cusomer base.
Price $2,100,000 plus stock

Situated in the heart of the RBWH at Herston, this unique business presents an outstanding opportunity for an astute investor or a buyer who wants to be closely involved in an exciting and profitable retail business.

The key attributes that make this business attractive:

• The RBWH campus environment provides a very safe and controlled retail environment
• The current lease expires in May 2023
• Turnover for the last financial year was $4.92m of which $2.53m related to Commission products (mainly Lotto and Go card)
• Excluding commission products, the business is currently returning a GP of 43.5%
• The current business operates under a Nextra franchise agreement which expires in May 2013. Therefore, the new owner can either continue with Nextra (or some other Newsagency group) or choose to become independent.
• There are no distribution responsibilities attached to this business.
• Customer base is secure. Approximately 8-9000 customers visit the shop each week
• Equipped with comprehensive ‘state of the art’ cameras, security and POS computer systems
• Proven sales performance

The Business

This business is unique in that it consists of three separate but closely integrated business functions. These business functions, and their approximate contribution to the gross profit of the business as a whole, are the Newsagency (40%) a Convenience store (35%) and a Gift store (25%). The contribution of profit from these separate business functions strengthens the business as a whole and virtually makes it recession proof with minimal business risk.

Location

The RBWH campus at Herston contains the Royal Brisbane and Women’s Hospital, The Children’s Hospital, various Queensland Health Departments and other medical research organisations. The shop is located on Level 1 of the new main hospital building. Other adjacent retail operations include a coffee shop, the main hospital canteen, a pharmacy, a post office and a flower shop.

The Shop

The shop, which is bright and open with a total area of 355m2, is ideally suitable for the current business. The original shop fittings were installed in 2003, but there have been numerous upgrades since then to accommodate changes in business requirements. Trading hours are from 6am to 7pm Monday to Friday and 7am to 6pm Saturday, Sunday and public holidays.

Financials

This is a very successful and profitable business with solid financials. A detailed Business Information Statement is available upon signing a confidentiality agreement.

Reason for Selling

The owners have built this business to the current level of profitability. However, retirement beckons and it is time to hand over to a new owner to continue the development of this business.

For more information regarding this business and to arrange an inspection, please contact us.

Details

Price $2,100,000
Location L1 Ned Hanlon Building RBWH Herston QLD
Categories Retail – Newsagency/Tatts
Date Listed 25th May, 2014