This well-established business is a unique athletic footwear wholesaler/distributor with a product mix that consists of top name brands such as Nike, Jordan, Converse, Reebok, Adidas, Fila, New Balance, Vans, Sketchers, and many others. The business has demonstrated stability and consistent growth over its 25-year history.
The company has a stellar reputation and a national and international client base of 300+ loyal resellers. It buys its products from Manufacturers direct or authorized Dealers. Customer segmentation is 70% US and 30% international. Its international clientele comes from countries such as Europe, Mexico, and South America.
There is a tremendous upside opportunity since the Company currently does absolutely no advertising, and has not developed an eCommerce platform or a retail strategy. A new owner can inject new energy to the business and pursue a more aggressive marketing and online strategy that is much needed. The new owner can also pursue opening select retail locations that can open up more direct manufacturer purchase access resulting in increased margins and profitability. A strategy of expanding the product line to include athletic apparel can also be very viable.
The management team is willing to stay on for a period of time and help with the smooth transition.
The company operates out of a 25,000SF Warehouse and office building and has 10 employees.
The operations run on a fully automated inventory and warehouse management system.
US personal consumption expenditures on sporting equipment, footwear, guns, recreational boats, and aircraft, are forecast to grow at an annual compounded rate of 3% between 2017 and 2021, according to First Research.
The global retail market for sporting goods is expected to grow at a compound annual rate of 3.4% from 2015 to 2020, according to Lucintel. The US and Europe traditionally have been leading markets for sporting goods. Developing regions such as Asia/Pacific, Central and Eastern Europe, the Middle East, and Latin America are expected to see more rapid growth.
The US retail sporting goods industry includes about 22,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $47 billion.
Asking Price includes $1,786,275 in inventory and $145,000 in collectible Accounts Receivable.