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This Spar/Tops store on offer operating in total now for 24 years, it was established in 1998 as an independent outlet. The present Owner managed it now for just over 18 years and want to retire now.
In June 2002 it was converted to a Spar/Tops Franchise outlet and in 2019, the Spar/Tops stores was completely revamped – various structural changes to the building were done at a cost of ±R6.5m as well as revamped costs for all the new Spar & Tops assets/equipment/fittings for ±R6.5m, was also done. (Total revamped costs = R13m). The set-up costs for a 1200sqm retail Spar/Tops outlet like the one on offer, will be between R12m to R14m.
The Spar & Tops is located in a busy suburb and cater mostly to the local Suburb as well as local surrounding areas around. This is an opportunity to invest in a quality business and to share in the growth that is taking place in the area.
The key departments and products on offer by the Spar outlet are the butchery, the bakery/confectionary and “Fruit & Veg” departments. The Spar store offers a wide range of products generally offered by a Spar outlet which includes the following:
- A wide variety of groceries, toiletries, fresh vegetables, salads & fruit.
- The well-known butchery supplying high quality fresh meats
- Bakery with freshly baked breads and confectionery.
- Strong salads / deli / hot food division as well as cold meat & preservatives.
Total staff complement consists of 48 full-time staff (Managers, Supervisors, Administrative staff, Cashiers, Merchandiser staff, Butchery staff, Bakery staff, etc.) as well as 12 parttime staff. The staff is competent and fully trained in all aspects of the day-to-day operations of the business.
Other relevant features:
*The Spar and Tops outlets used the Java Poss System.
*Split of turnover is Black = 70% and White = 30%
*There are four small competitors in the nearby area.
*The Spar outlet has 8 x paypoint points ((including the two at the tobacco counter).
*All the new equipment is in very good condition and regular maintained.
* SPAR operates under "voluntary trading" principles which means that while they encourage retailers to take advantage of SPAR's trading buying power, the Franchisees can source goods from other local suppliers as well.
*Advantages and benefits of the Spar Brand with massive nationwide advertising and regular “specials” using various media campaigns.
This Spar/Tops store services the needs of a big customer base and enjoys exceptionally sales growth of about 20% per annum over the past two financial years since been revamped in 2019 with a sound cash flow.
Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation) based on historical trading amounts in total R4,753,000 (Spar for the financial years 2021 and Tops for the financial year 2020).
The total selling price of the Franchised Spar & Tops and the Business Property/House on offer, is R37,500,000 made up as follows:
*The selling price of the Franchised Spar and Tops on offer is R25,500,000 plus VAT (if applicable) and includes Movable Assets of R7,700,000 and Trading Stock @ cost of about R6,073,000.
*The selling price of the Property is R12,000,000. The business Property consists in total 1228 square meter – the “In Store Trading area”, the “backend” butchery and bakery/ confectionary preparation areas, cold rooms/freezers, store areas, offices, reception area for deliveries, etc. Included in the Property selling price is also a house adjacent to the business property currently occupied by some of the staff.
The calculated EBPITD figure for R4,753,000 stated above, includes the provision of rentals under “0perating expenses” for the Spar/Tops stores.
Full financial information is available and will only be provided to potential Buyers who signed a NON- Disclosure Agreement (NDA) and provide info of how they going to fund this business acquisition.
The business is being sold as turnkey and the Spar Franchisor and Owner will also ensure adequate training and assistance after take-over.
This reputative Spar/Tops outlet coming into the market is an exceptional opportunity to enter this very competive market or to expand existing operations. If you are passionate about the Supermarket industry and want to be the new Owner of this well-established reputable Franchise Spar /Tops on offer – this might be the business opportunity for you to grab and to continue grow it as a reputable Franchise Supermarket retailer.
Real Property Included
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