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Great Mail Order Business for sale in Warwick, Shipston-on-Stour & Stratford-upon-Avon

Warwick, Shipston-on-Stour & Stratford-upon-Avon, Warwickshire

Asking Price £250,000
Turnover £455,000

Business overview

A very well established brand in high quality top end niche knitwear. Highly respected with an extremely loyal 48k mail order database and 7k email customers + shop + concessions.

Business details

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  • Net profit
  • Accomodation
  • Staff
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Business description

A wonderful opportunity to acquire a prominent established brand in high quality top end niche knitwear. Highly respected with an extremely loyal 48k mail order database and 7k active email base. Owner retiring. Ideal opportunity for merger and development.

What's included in the sale:
-The Domain Name
-All Client and Mail databases.

Background Information:
-The Alpaca Collection was founded in the mid 1990s and over the years has grown to become the largest UK based wholesale company and it retains many of its prominent customers.
-The Alpaca Collection is a wholesale company. The brand, Spirit of the Andes, sells directly to the public. It is the brand, Spirit of the Andes that is for sale but selling the two business together is also possible.
- In 2015, the opportunity to acquire Spirit of the Andes became available. Spirit became successful and established 14 shops in good solid English county and cathedral towns. It also established a line of concessions in the UK and outlets in Europe and Japan. In addition a successful mail order operation was established which has grown a good quality active database of 48000 (90% female) which has been extensively overhauled updated and weeded since we bought the brand.
-Running in parallel with the mail order business is the website (www.spiritoftheandes.co.uk) which was totally rebuilt in 2015 and runs on Shopify and is linked with sage and paypal.

What do you need to know about Alpaca and Pima Cotton:
- There are two distinct product groups within Spirit. Alpaca is by nature more a winter than a summer yarn - although light weight alpaca is both alluring and comfortable and shawls and capes useful on Spring and Autumn evenings.
- There is no major barrier in terms of supply and demand as far as price is concerned. Whatever the price - customers are prepared to pay for a garment that is beautiful, long lasting and a joy to wear. Spirit sells Alpaca and Pima Cotton for ladies (70%), men (10%) and in the form of accessories (20% - hats; scarves and cuddly toys).
-Peru is fortunate enough also to grow what many consider as the World’s finest cotton. Spirit’s customers are great fans as it is luxurious to wear and it has enduring qualities in that it keeps it shape, doesn’t colour fade when washed, and lasts for a long time. Its admirers come back time and again for new colours or styles. (One lady boasts that she has bought 85 pima cotton tops!)
-Ladies nightwear is particularly popular and there is considerably growth in this division. Generally, pima cotton factories in Peru are more commercially run and to higher standards than alpaca where the yarn is controlled by 2 major suppliers.

Web, Mail Order Sales, Road Shows and Concessions:
- The website was particularly successful in 2017 and it would seem prudent to continue to develop this. Our current website manager does a very good job in promoting its site. He is currently setting up a German site.
- Spirit of the Andes has a strong Autumn/Winter catalogue with its blend of alpaca and pima cotton. Work needs to be done on strengthening the Spring/Summer catalogue and in particular development of a wider range of Pima Cotton products. The website manager is also responsible for the advertising schedule and for social media.
- The first road show took place in January 2017. They proved to be very successful not only in that good sales took place – but also in that we were able to talk to our customers and listen to their comments which were almost all positive. They are generally saddened by the closure of the shops but happy that they are able to try out clothing prior to purchasing.
-Our customers are mainly of a more mature age and are not always comfortable with the hassles of sending items back if they are not happy with them. They jump at the opportunity of visiting a nice Country Hotel having something to eat or drink and touching and feeling and wearing the clothing. Most come and see us wearing their own alpaca and or pima cotton, and most depart having bought some more. It really is a niche and lucrative market.
- The original purpose of concessions was to offer customers a location to shop for unusual or unique items or end of lines. This was useful in our ability to improve our stock control and sell old stock We have rationalised our concessions and we have a local concession in a very good “shopping and dining destination” and we have our only branded shop in Holt which has four years to run on its lease. (This is available to be sold – but not required to be included).

Room for development:
-We need further expertise to maximise the full potential of our Catalogue. We publish twice a year in April and September and the results are improving but any new purchaser will have their own formula for success.
-There is huge potential to expand the Pima Cotton products that sell from £38 to £79. Our product range is compact and our margins excellent.

-Whoever buys the name of Spirit of the Andes will have their own ideas as to how to progress the products and it is not for me to impose my thoughts and ideas. But I will be on hand if required!
-I am offering for sale the brand of Spirit of the Andes. This will include the goodwill, licences, database and website. Buying the brand will enable the purchaser to trade unencumbered and to enjoy the rights that that name has; the purchaser will have exclusive rights to the ongoing business .

Please get in touch and message me to find out more about this brilliant opportunity.

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