For Sale – House of Serendipity (3 Stores)
House of Serendipity is an unique and iconic retro and vintage, and designer recycled clothing store, established by a young entrepreneur approx. 17 years ago. The founder (Nadia) was the principal and for most of the 14 years was also the main operator, before the current owner purchased it in June 2013.
Since June 2013 the business has been run predominantly under management and expanded from one store to three stores. The wonderful staff are very dedicated to the business and the customers.
The current owner looks after the book-keeping, payroll (using Xero), the marketing which is predominantly on Facebook, and transfers stock etc. between stores as necessary 2-3 times per week (with a few coffee stops thrown in!)
There are 8 Casual Employees
Facebook and Instagram followers in excess of 3,500
Website with Woo-Commerce included ready for online sales
Recommended on Trip Advisor
Rewardle online Loyalty program well established
One, Two or Three stores available for sale – WIWO (Walk In Walk Out)
The original Glenelg store –
The Glenelg store has many existing loyal customers who have supported it for the past 16 years, and is still being discovered by new and usually very enthusiastic customers. The double sized shop which offers fashion for men and women is located at shop 4 / 4 Partridge St. Glenelg. It has large window frontage facing into the Partridge St East (double storey) carpark. The carpark is council owned and operated and open 24 x 7 with 2 – 4 hours free parking.
There are no opening hour restrictions and the Glenelg store is open 7 days a week at the owners choice.
When the first floor of the Partridge St Carpark at Glenelg was being constructed over a 6 month period in 2015, it hit the business very badly as there were no carparks open in the area and the builders had to board up the complete front of the shop and access was only by a narrow walkway. With only one store at the time, the owner was concerned that she had all her eggs in one basket. So she decided to spread the risk and open up more opportunities through more stores.
The double storey carpark opened in September 2015 and it’s taken some time for the Glenelg store to get back up to its usual sales figures, but it’s back on track and the exposure from the other stores (particularly Harbour Town) is adding value. The increased carparking availability with the new first floor is also an asset to business, and they’re expecting that with additional signage (that can be seen from Jetty Rd) and the new cinema complex preparing to opens across the road in March 2016, there’ll be even more business through the doors.
In May 2015 they opened a new ‘Designer’ focused recycle store at 75 Glen Osmond Rd Eastwood. There is a one year lease with 4 x 3 year renewal options. This store is very ‘boutique’ which seems to suit the local demographic well. It’s open 6 days 10-5pm at their own discretion.
A recent survey of local similar businesses will show that re-cycled stores with the same style of stock are selling their clothing at almost double Serendipity prices. And (in our humble opinion) aesthetically they generally aren’t as pleasant, light and bright as Serendipity on Glen Osmond Rd. Staff at Serendipity are also particularly pedantic about assisting clientele too, so the feedback from customers is extremely positive – and anyone in successful business knows that sales (and repeat sales!) follow service.
Harbour Town –
Late October 2015 they opened a ‘clearance’ store in a 50m2 tenancy at T36B in Harbour Town. The initial fit out costs and associated expenses where more than envisaged but the foot traffic has been great and the store has been very well received by customers, travellers and centre management. Within its first 2 months it’s already meeting its target gross sales. They have an initial 1 year lease with a 3 year option. The centre opening times require specific opening times and 7 day trading.
This store has a Rockabilly selection offering a range of NEW reproduction retro clothing.
Centre Management runs regular promotions and their marketing team always welcome suggestions to improve marketing of the centre and of Serendipity at Harbour Town. They have around 32,000 on their data base and large Facebook following. With free car-parking, plenty of security, and a range of fashion stores and coffee shops this is the place where people come not to browse, but specifically to buy!
This outlet is in a prime location to lead the sales of Serendipity.
It’s a ‘good feeling’ Business – and a little ‘different’
The beauty of the business is that the majority of stock doesn’t go ‘out of fashion’. They always have people looking to sell their pe-loved clothing, so Serendipity can be very choosy about what they purchase, and discretionary about how much they pay. They do also buy brand new stock from a local wholesaler which can be delivered usually within a day or two.
Serendipity also benefits from the increasing acceptance and even preference for recycling and ecological sustainability. Their pricing policy is a great draw-card too as designer label items are usually only 10% of the original price so customers can look good in great brands at a fraction of the cost.
Many customers to their Glenelg store prefer to buy retro clothes for themed parties rather than hire them… it’s simpler, more unique and often cheaper.
Then there’s the fashion trend-setters who want to avoid the mainstream monotony look, as well as the money-savers and the bargain hunters who love the specially selected recycled stock and enjoy the great service that the team provide.
Keeping it Easy for you to Enjoy!
All the hard work has been done for you by the current owner:
- Turned the business around from closing in 2013 to rocking in 2016!
- Improved the margins to ensure sustainability and improve profit
- Established unique relationship with NEW reproduction clothing wholesaler
- Employed and trained more staff + extended opening hours at Glenelg to benefit from the new double sized carpark
- Signage being organised at Glenelg to increase exposure ready for new Cinema opening
- Eastwood store set up and running like clockwork self sufficiently
- Harbour Town set up from scratch and fired up within first 2 months of trading!
- Telephone systems changed to reduce expenses
- All lighting in Glenelg and Eastwood stores recently changed to LED to slash power prices
- Set up Loyalty program systematically (no cost)
- Expanded Facebook from 1400 to >3500 followers and added Instagram
- Listed and achieved great reviews on Trip Advisor
- Set up written procedures
- Reduced print media advertising high cost and focussed on immediate impact and low cost social media advertising
- Set up (wordpress) website and blogs – including commerce plug in for online shopping if wanted
The Benefits for Buyer/s
Investment Potential –
If you want to be passive, you can have the staff run the day to day business completely as the current owner has predominantly done. Nothing is guaranteed of course, but you could expect *15-20% as a return on your investment (ROI). That’s much better than the bank or even property investments!
*That ROI has been based on the 2 full financial years net profit from just the Glenelg store, but allowing the WIWO asking price for all 3 stores! That net profit includes months of major construction which affected trade drastically at the Glenelg store. It doesn’t take into account any income from the two other stores either.
Emotional Potential –
For those of you who have a passion for fashion and love to be creative – this business could be a dream come true for you!
Imagine being able to choose everything yourself for the shop/s and present them as you like. You won’t be buying dresses and shoes one at a time – you’ll be buying dozens at as time! You may even decide to import stock from overseas and/or export your stock interstate.
Window displays will be your artwork – to be admired, attractive and rewarding!
Work the hours you want – just have your awesome staff do the rest!
- Want to have dedicated ‘YOU’ time? – no problem.
- Need to collect the kids from school? – no problem.
- Want to take time off with them? – no problem.
- Want to spend time with aging family? – no problem.
- You choose the areas you want to be involved in – just have your staff do the rest.
- Want to do the displays only? – no problem.
- Want to authorise all the stock buying? – no problem.
- Want to do the marketing yourself? – no problem.
In our book, that’s emotional freedom!
Business Potential –
Did we mention a decent Return on Investment (ROI)?
Did we mention that the staff can run the day to day business – and more if you want to empower them?
Did we mention that two of the stores haven’t been opened long, so the potential is still to come?
Did we mention that you can simply ‘walk in’ and take over with everything available to you, including procedures, accounting profile, business contacts, Facebook page, and many customer contact details ?
We should also mention now that the owner is happy to help with training, introductions, and perhaps a little vendor finance if you need it.
Why is the Vendor selling?
The owner loves business, property, people, and a new challenge. But fashion is not her passion. However her intention when she purchased (Nadia’s) House of Serendipity was merely to ‘renovate’ the business, make a profit, and then sell and move to the next opportunity.
If the owner were to hold the business for another 6-12 months, allowing the sales figures to catch up with the expenses relating to the new stores, she would be asking quite a higher price than today. However she has another business and property investments that need her attention urgently so the opportunity is here for a buyer (or buyers) to take control of the business now, at a very reasonable price, and take it to the next level!
Although eager to focus on her other projects very quickly, the owner wants to make sure this beautiful business transfers to someone who will love and cherish it.
If this could be a dream come true for you – if this could be Serendipitous for you …
Email: email@example.com for more information… but be quick!
NB. There could be an option to split the stores if you are interested in buying just one. Alternatively you may want to consider purchasing all the stores but with partners!