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Office Address
1310 Hay Street
West Perth
Western Australia 6005

Mailing Address
PO Box 282
West Perth
Western Australia 6872

Phone: +61 8 9481 4422
Fax: +61 8 9481 4441

Email us:
info@buyabusiness.com.au

State of the Market

State of the Market > Retail (General)

Retail (Food) | Service & Professional Practices | Hospitality/Accommodation | Wholesale / Manufacturing

Category Buyer Demand Profit
Owner Operator
Approx.
Total Sale Price
(AUD)
Approx ROI Profit
Under Management
ROI Industry
Comment
Book Stores Fair $150,000 $350,000 35% to 50% $50,000 10% to 20% Some buyer interest returning. Require large floor space which results in high rentals. Some bookstores now have a cafe section. Internet book sales an issue for the future.
Boutiques Weak $150,000 $200,000 70% to 80% $50,000 20% to 30% Dozens to choose from including some excellent businesses but market is resistant to paying goodwill.
Card Retailers Light $160,000 $280,000 45% to 70% $60,000 18% to 25% Some pressure on rentals. Independent stores competing with chains/franchises. facebook and Electronic greeting cards changing consumer habits.
Florists Poor $80,000 $100,000 70% to 90% N/A N/A Low purchaser demand. Too many outlets to create substantial goodwill in most stores. Supermarkets encroaching on florist market share.
Liquor Stores Strong $300,000 $1,130,000 25% to 28% $200,000 15% to 22% Interest across all price levels. Lease tenure important.ROI depends on product sales mix.
Category killers such as Dan Murphys a new threat.
Lotto Kiosks Good $275,000 $1,000,000 25% to 30% $175,000 15 to 22% Businesses which appeal to business migrants. Demand continues. Internet gambling a future threat.
Newsagencies moderate $400,000 $1,500,000 25% to 30% $300,000 17% to 23% Good demand but many for sale at "optimistic" price levels, causing a glut of stock.
Nurseries Occasional $200,000 $290,000 60% to 80% $100,000 30% to 40% Demand is only occasional.
Retail (General) Selective $170,000 $260,000 50% to 90% $70,000 23% to 33% Selective demand.Big shopping centres a problem area because of high rents.
Retail Bedding Franchise Fair $250,000 $500,000 40% to 60% $150,000 25% to 35% Generally offer good value. More competition now with Eastern States chains in WA market.
Roadhouse Moderate $130,000 $200,000 60% to 70% $30,000 10% to 20% Market fair for the larger country sites (turnover $5 million plus per annum).
Service Stations Poor $200,000 $320,000 50% to 80% $100,000 25% to 30% Multi-national oil companies have redefined the industry. There are now very few metro leasehold sites available. Some country sites available with modest buyer interest.
Sports Stores Slow $180,000 $315,000 45% to 70% $80,000 20% to 30% Slow demand. Dominated by superstores selling at discounts.
Supermarkets - Large Good $500,000 $2,000,000 22% to 32% $400,000 15% to 25% Demand is very firm. Major outlets more popular, particularly IGA and Super IGA. Considered the best cash flow business.
Supermarkets - Small Fair $250,000 $700,000 30% to 40% $150,000 18% to 25% Asia/Australian community showing greatest interest. High profile locations an advantage. Service stations are a competitive factor.
Surf Retail Good $190,000 $400,000 45% to 50% $90,000 20% to 25% Few listings available.Iinterestonly if priced to market.
Video Stores Light $180,000 $260,000 50% to 90% $80,000 30% to 33% Cable TV revolution a substantial competitor. Big franchises more popular. Digital downloading a cloud on horizon.
Wrecking Yards Weak $250,000 $450,000 50% to 75% $150,000 30% to 40% Difficult to realise goodwill due to the high level of stock and cash sales component.