Ref. No - BFS937604

LocationSouth Africa, KwaZulu-Natal

Ref. No - BFS937604

Sector - Retail

Asking Price
R650,000
Monthly Profit
R26,477
Asset Value
R 50,000
Stock Value
R 250,000
Yearly Net Profit
R 317,719

Summary

The Spaza clothing store is near the taxi rank on the main road through the centre of town. It is a very popular branded clothing and shoe store. Great business opportunity.

Give me more information

Fully describe the business's activities?

Buying branded clothes and shoes in bulk and selling them at massive discounts. There are really good quality suits for men. Children's clothing and shoes and underwear are also part of the stock for sale. the clients mostly buy goods for cash or they do lay byes. There is also a credit card machine available.

How does the business operate on a daily basis?

Walk in clients that come in to try the clothing, which is all fashion ware and they either try it on and purchase or they put a lay buy on the item to be stored in the back storeroom until paid in full.
On Monday the owner recieves the stock for the store to fill the store

What Advertising/Marketing is carried out?

They promote their brand across multiple platforms, including a dedicated Facebook page, a Google ad featuring customer reviews, and dynamic TikTok campaigns.

What competition exists?

These are well-established clothing retailers located in popular shopping centers like Boardwalk Inkwazi Mall and Checkers Centre:
• Truworths Ltd – Offers a wide range of fashion for men and women, known for trendy collections.
• Cape Union Mart – Specializes in outdoor and casual wear, appealing to a different niche.
• BJ Outfitters – A local favorite for everyday fashion.
• Selfast Clothing – Located in Lakeside Mall, known for affordable and stylish options.
• Webbers Richards Bay – Offers a mix of casual and formal wear.
• Zaxie – A boutique-style store in Meerensee Mall.

How could the profitability of the business be improved?

1. Utilizing the Second Floor
Transforming the stock storage area into usable retail or experiential space could offer several advantages:
Benefits:
Expanded Product Display More room to showcase seasonal collections, accessories, or even a dedicated section for local designers.
Customer Experience Zones Create a lounge area, fitting rooms with better lighting, or interactive style stations.
Event Hosting Use the space for pop-ups, fashion shows, or styling workshops to drive engagement.

Tips:

Keep stock storage efficient with vertical shelving or off-site warehousing.
Use signage and lighting to guide customers upstairs—make it feel like a discovery, not an afterthought. Improving the Shop Front
A compelling storefront is your silent salesperson—it draws people in before they even know what’s inside.

Give a breakdown of staff/ functions/ length of service?

They help serve the customers, help unpack and price the clothing to hang on the racks and displays. They keep an eye on the customers to help prevent shop lifting.

Do any have management potential?

No

How involved is the Owner in running the business?

The owner is very active in the business. He orders the stock and does all the lay-buys and sales.

When does the current lease end?

The owner of the business owns the premises. Who ever purchases the business can negotiate the lease agreement.

What are the trading hours?

Monday to Friday 8.30am-4,30pm
Saturday 8.30am-12.30pm

What are the main assets of the business?

The stock consists of clothing, underwear, and shoes.

There are clothing racks and display areas.

There is shelving and a small reception/payment station.

Strengths?

• Strong community relationships — loyal customers who prefer buying from familiar, trusted sellers.

• Agility in stock choices — can quickly change what you stock based on what sells, without waiting for head office approval.

• Lower overheads — smaller space, simpler operations, and minimal staffing needs.

• Direct supplier deals — flexibility to buy from multiple sources, including specials and bulk bargains.

• Personalised service — friendly, conversational selling that chain stores can’t match.

Weaknesses?

• Limited stock variety — space constraints can mean fewer styles and sizes at any one time. There is more space upstairs. This can then be converted to floor space to sell more.

• Cash flow pressure — small-scale buying power means less bulk discount leverage.

• Brand awareness limited to foot traffic — may not attract customers beyond the immediate area unless promoted.

• Dependence on local economy — if surrounding businesses slow down, spending drops.

Opportunities?

• WhatsApp selling & delivery — show new arrivals to customers on WhatsApp groups and offer local delivery.

• Pay-day specials — Richards Bay has a strong pay-cycle pattern; focus on “end-of-month” fresh stock drops.

• Custom orders — take orders for specific brands/sizes, customers' requests.

• School & team gear — sell branded T-shirts, caps, or hoodies for local schools, sports clubs, and events.

• Tourist trade — during holidays, stock trendy summer or beachwear that appeals to visitors.

• Cross-selling essentials — add small accessories like caps, belts, or socks for extra profit

Threats?

Cheaper informal competitors — street sellers or market stalls with lower prices.

• Online marketplaces — people ordering directly from Takealot, Shein, or social media sellers.

• Economic pressure — rising food and transport costs can make clothing a lower priority.

• Stock theft — shrinkage risk is higher for small, high-value items in a busy street location

What is the reason for the sale?

The owner has other business's he would like to focus on.
Location

Contact | Enquire

Lori

Lori Mitchell

LocationSouth Africa, KwaZulu-Natal

Preferred method of contact

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