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Retail General

2012

Category Buyer Demand Approx. Total Sale Price (AUD) Profit Owner Operator Approx ROI Profit Under Management ROI Industry Comment
Book Stores Poor $325,000 $175,000 50% to 60% $75,000 20% to 25% Almost no buyer interest . Require large floor space which results in high rentals. Online sales a real threat. 
Boutiques Weak $200,000 $150,000 75% to 80% $50,000 20% to 30% Dozens to choose from including some excellent businesses but market is resistant to paying goodwill. Online sales a threat.
Card Retailers Weak  $275,000 $160,000 50% to 70% $60,000 18% to 25% Independent stores competing with chains/franchises. Young consumers do not to buy as many greeting cards, preferring social media. 
Florists Poor $130,000 $100,000 70% to 100% N/A N/A Low purchaser demand. Too many outlets to create substantial goodwill in most stores. Supermarkets encroaching on florist market share.
Lotto Kiosks Fair $675,000 $200,000 28% to 32% $100,000 12% to 18% Still priced on a husband and wife model. Businesses which appeal to business migrants. Demand continues. Electronic internet gambling a threat.
Newsagencies Medium Fair $450,000 $150,000 30% to 38% $50,000 8% to 12% Still priced on a husband and wife model. Competing with high FIFO wages. 
Newsagencies Large Fair $1,425,000 $400,000 26% to 30% $300,000 17% to 25% Still priced on a husband and wife model. Moderate demand, buyers are selective. 
Post Offices Fair $600,000 $170,000 24% to 33% $70,000 10% to 15% Still priced on a husband and wife model. Moderate buyer interest and demand due to monopoly rights. 
Retail (General) Selective $230,000 $150,000 50% to 80% $50,000 20% to 25% Selective demand.Big shopping centres a problem area because of high rents.
Retail Bedding Franchise Weak  $800,000 $400,000 40% to 60% $300,000 33% to 45%  More competition now with Eastern States chains in WA market. Discounting a challenge 
Roadhouse Occasional  $200,000 $140,000 60% to 80% $40,000 18% to 25% Market fair for the larger country sites (turnover $5 million plus per annum).
Service Stations Poor $320,000 $200,000 50% to 80% $100,000 25% to 35% Coles and Woolies shoppng vouchers have redefined the industry. very few metro leasehold sites available. country sites available with modest buyer interest.
Sports Stores Slow $300,000 $150,000 45% to 55% $50,000 18% to 25% Slow demand. Dominated by superstores selling at discounts. Online a threat. 
Supermarkets - Large Weak  $1,200,000 $400,000 27% to 38% $300,000 20% to 30% Demand has weakened as Coles/Woollies price wars and 7 day trading laws suggest Sunday competition and lower gross profit margins are the new norm. . 
Supermarkets - Small Weak  $400,000 $200,000 40% to 60% $100,000 20% to 30% Asia/Australian community showing greatest interest. .Affected by relaxation of trading hours allowing Coles/ Woolworths 7-day trading rights
Surf Retail Weak  $300,000 $160,000 50% to 60% $60,000 15% to 25% Few listings available. Can generate interest if priced to market, but online sales a real threat.  
Video Stores Poor $150,000 $150,000 80%-120% $50,000 30% to 40% Cable TV revolution and internet Digital downloading a cloud on horizon.


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