Profitable 4-Unit Footwear Retailer – $2M+ in Sales, Excellent Growth Potential

26 Oct Profitable 4-Unit Footwear Retailer – $2M+ in Sales, Excellent Growth Potential

Posted at 12:04h in by Michael Greene

Price: $1,195,000

Location: Albuquerque, New Mexico

Industry: Retail and Wholesale, Fashion

Listing ID: Footwear

This retailer has built a following in New Mexico and Colorado malls by doing a few things consistently: a broad selection, prices shoppers can say yes to, and attentive customer service. The stores sell at full price, with no clearance events or markdown cycles and an exchange-only return policy. With standard retail pricing at four times wholesale cost, that discipline shows up in gross margins averaging 74%. Store employees handle sales, displays and the register, so the owners can focus on running the business.

The assortment covers footwear for women, girls, toddlers and infants, from boots, sandals and heels to everyday and special occasion styles. Fashion accessories, jewelry and non-prescription eyewear round it out. Multiple price points bring in customers across ages and budgets.

Trained store employees handle day-to-day sales and merchandising, while the owners oversee purchasing, hiring and logistics across all four locations.

Purchasing is a real asset here. The owners buy through two established import sources that keep them current on trends and fast-moving styles. New arrivals, plus rotating merchandise between stores, keep each location’s selection fresh and customers coming back. The business reports no obsolete inventory.

The growth potential is real. Several malls have already approached the business about bringing the concept to their properties, and all four stores share a consistent format a new location can follow. Few New Mexico competitors match its range, from fashion-forward designs to affordably priced everyday footwear. Sales have been built largely on word of mouth, so a new owner can grow through marketing and an e-commerce site already in development.

Listing Details

Revenue: $2,043,410

Cash Flow: $296,227

FFE: $150,000 (Included in Price)

Inventory: $400,000 (Included in Price)

Real Estate: (Not Included in Price)

Form of Ownership:

LLC

Reason For Sale:

Seller is relocating out of state for personal reasons.

Training & Support:

The seller will provide four weeks of training and transition support at no additional cost, covering store operations, purchasing and supplier relationships.

Operation

Year Established: 2019

Year of Last Acquisition: 2019

Owner Hours Per Week: 30-40

Non-Owner Payroll: $277,895

Employees: 21

Location

Type of Location: Mall

Square Footage: 161328

Facilities Information:

Four mall locations: 3 in New Mexico and 1 in Colorado.

Summary

Owner Qualifications:

Employees run daily store operations, so a new owner steps in to lead the business, not work the floor. Retail, purchasing or multi-unit management experience is helpful.

Competition:

These stores stand apart on breadth of selection at accessible prices, in-store service and a mall presence that draws walk-in traffic.

Potential Growth:

1) Build on its Instagram and Facebook presence with targeted digital outreach around new arrivals, seasonal footwear and special-occasion shopping. 2) Launch online sales through a website already in development. 3) Add locations. Malls have approached management about bringing in the concept, so a new owner starts with leads in hand. All four stores share a common format and sourcing, which gives a new location a template to follow.