Founded decades ago, the Company is an an established Midwest-based chain of grocery stores for sale. The stores carry a full line of food and related products, including bakery, deli, meat, produce, dairy, and frozen foods. They also carry wine, beer, liquor, health and beauty aids and offer Western Union money transfers, money orders, phone cards, utility payments, lotto, lottery, postal stamps and bottle redemption.
Ownership is investigating the sale of one or more stores in accordance with its strategic reorganization to restructure debt, improve shareholder returns and to raise capital for renovation and take advantage of growth opportunities.
- Brand is well-known and respected for quality products and service
Financial Summary:
Trailing Twelve Months (TTM) Sales July 2015: $50,082,278
TTM Operating Profit Before Interest, Depreciation and Amortization July 2015: $2,391,448
- Key geographies of operation are undergoing notable economic development
Executive Summary:
The Company’s home office is in the Great Lakes region and in their 100+ year history they have built an excellent reputation within the geography they serve
Salient attributes:
- Ownership willing to entertain selling individual stores.
- Stable Gross Profit margins with opportunity for improvement associated with increased liquidity and purchasing power.
- Average weekly store sales range from $78,400 to $222,700 per store. Total average weekly sales for all stores are $982,000.
- The Company’s Designated Market Area (DMA) is marked by positive historical and projected population growth of 2.1% from 2015-2020.
- All Stores are leased. Square footage ranges from 15,500 to 35,000 sqft. Average remaining years of control is nine, including options.
- Stable employee base.
- Untapped growth potential due to capital constraints.
- 229 store level employees, of which 86% are unionized. Average hourly wage is $12.36. Working relations with the unions are very good.
Present management believes that a larger acquirer could benefit greatly from the brand recognition, strong local ties and experienced employee base that accompanies an acquisition.
- Present management believes that a larger acquirer could benefit greatly from the brand recognition, strong local ties and experienced employee base that accompanies an acquisition.
Key Considerations:
- Management Team is highly experienced and would assist in the transition process and post transaction management.
- Employees are dedicated with significant tenure.
- Brand is well-known and respected for quality products and service
- Key geographies of operation are undergoing notable economic development.
- Stable same store sales are projected through 2019.
- For the most recent trailing twelve months analyzed, Store Level EBITDA was $2.3MM (4.5% margin).
- Management is undertaking a number of initiatives to reduce corporate overhead and other operating expenses.
Interested in these excellent grocery stores for sale? Please inquire below for access to a complete Offering Memorandum and Financial Addendum:
Interested parties must demonstrate proof of financial capability, sign a Non-Disclosure Agreement, and have a brief introductory phone call with a broker. Inquire today about this fantastic commercial service business for sale.
