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Consignment Retailer-niche Product In Prime Market For Sale

Olmsted County, Minnesota, US
Asking Price:
$60,000 Furniture / Fixtures included
Sales Revenue:
$200,974
Cash Flow:
$42,089

This business provides affordable used gear to outdoor enthusiasts through a boutique shopping experience. For sale is a newly established, highly curated, and strategically branded opportunity to dive into the re-use community through the expansion of a burgeoning brand . With a health and wellness conscious, high income community surrounding this store, the potential for profitability and continued success is good. Because the re-use community tends to run counter-cyclically, it is well position for any potential economic slow-downs as well.

The current owner works 40 hours per week in the operations of the business, including inventory management, sales, HR, marketing, accounting, admin, and general shop upkeep. There are currently 3 PT sales associates that help run the retail operation and social media. There is promotion potential within the current staff if a new owner is interested in exploring that option.

Year-over-year sales are up approximately 20%, with momentum still building rapidly. Relying primarily on word-of-mouth marketing, the success and growth of this business has only just begun. Good opportunity for someone wanting to expand into a niche market in a growing community, or someone new to business that wants a simpler operation to take over and take to the next level.

Property Information

Real Estate:

Lease

Premises Details:

The space the Company occupies has been recently renovated and is in great condition, built out for the needs of the store. The real estate is leased, with the current lease expiring in 2024 with several extension options. Seller will work with buyer to solidify the lease with the landlord for new ownership.

Business Operation

Expansion Potential:

There are many opportunities to grow the business, including:
· Open another brick-and-mortar store (more sqft of retail space). Branching out into other communities can bring in more gear and open up the customer base. Opening multiple brick and mortar shops and selling gear on one website could also grow online sales.

· Collaborate with gear reps. develop a consignment program for gear reps from high end brands, who are looking to get rid of demo gear from previous seasons.

· Local and digital marketing campaign. The seller has spent very little money on marketing and much of the growth has been organic and word of mouth. Developing a marketing budget and plan could help set sales goals and hone in on reaching out to current, and finding new, markets and customers.

Competition / Market:

Used goods stores have experienced swelling revenue through most of the five years through the end of 2023. These stores have historically performed countercyclically to the overall economy, but as income levels and consumer confidence surged early during the current period, used good store revenue continued to climb. Revenue also swelled because of changing consumer and fashion trends, leading to an influx of demand from young consumers. Moreover, numerous social media outlets and TV shows dedicated to altering or selling used merchandise have become popular through the end of 2023, driving consumer demand for used goods stores' products. However, these stores experienced substantial challenges amid COVID-19, pushing down used good store revenue in 2020. Overall, used good store revenue will strengthen at a CAGR of 4.6% to $28.7 billion through the end of 2023, including a 1.1% swell in 2023 alone.

During the current period, the number of used goods stores has edged upward. Various for-profit used good stores have joined the industry after being drawn by the expanding popularity among individuals for exchanging used goods for cash. Alongside the entrance of these used goods stores, the average profit margin will inch upward during the current period. In turn, nonprofit companies have been working toward shifting pricing strategies. However, the pandemic resulted in the exit of many used goods stores unable to weather the temporary closure of nonessential businesses. However, used goods stores with online operations have been successful, boosting employment 1.4% in 2020. The number of establishments has, however, inched downward at a CAGR of 1.3% to 77,525 companies through the end of 2023.

Moving forward, used goods stores revenue will continue expanding at a CAGR of 1.7% to reach $31.3 billion through the end of 2028. External competition will, however, likely continue to swell as families with higher income levels seek out new, rather than used, items. However, in response to heightened competition, used goods stores will become more specialized, carving out niches in high-quality, low-priced used merchandise, like designer clothing or musical instruments.--IBIS WORLD

Reasons for selling:

Seller has other interests.

Trading hours:

Wednesday-Sunday 10am-6pm

Employees:
3 PT
Years established:
2

Other Information

Support & training:

Will train for 2 weeks @ $0 cost.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

$6K down/$12K over 60 mos. @ 9%/Other Financing.

Furniture / Fixtures value:
$8,290 - included in the asking price
Relocatable:
This business can be relocated.