ACQUISITION OPPORTUNITY R-1670-6

PET & PET SUPPLY STORE

This suburban Northern Kentucky retail store was developed in late 1997 as a prototype design test location for a multi-unit chain of pet and pet supplies businesses that would compete in tertiary markets with the large “category killer” stores that serve only primary and secondary metropolitan areas.  In only its second full year of operation this business has grown from $592,000 to $640,000 annual sales, is profitable with improving margins, and budgets 8-10% increases in revenues and profitability for each of the next few years.  Management has elected to concentrate on its related pet food and pet supply and distribution business and sell off its retail chain to owner/operators.  This store is well positioned for growth, with long-term leases in place and with the opportunity to maintain attractive supply arrangements with new ownership.

INVESTMENT HIGHLIGHTS:

• Niche retail business in an industry that accounts for more than $15 billion in annual purchases of pet foods.

• Prototype design test store that maintains an equivalent number of stock-keeping units (SKU’s) as  the “category killer” stores, in less than one-third of the floor space.

• Turn key operation with management and knowledgeable employees in place.

• Excellent supplier relationship provides for just-in-time deliveries, high in-stock availability and inventory turnover.

• Acquisition by an independent owner-operator with the strategic and logistics support from its principal supplier will provide for a strong competitive position and continuing growth and profitability.

 PURCHASE PRICE:

This retail store is being offered as an asset purchase free and clear of debt for $160,000.