Ref. No - BFS937888

LocationSouth Africa, Gauteng

Ref. No - BFS937888

Sector - Retail

Asking Price
R90,000,000
Monthly Profit
R1,036,238
Asset Value
R 51,252,592
Stock Value
R 16,000,000
Yearly Net Profit
R 12,434,850

Summary

This convenient one-stop supermarket offers an impressive selection of fresh produce, quality meats, and baked goods, complemented by a deli and an on-site liquor store for added customer convenience. As part of a franchise, the business benefits from ongoing support and strong brand-driven advertising. The store itself is modern, well-maintained, and welcoming, staffed by a friendly and upbeat team.

Give me more information

Fully describe the business's activities?

This franchise Supermarket is situated in a prime hub of the local town with convenient access for both residential and nearby industrial areas. The store is clean, secure, and well-managed, offering a wide range of quality products. It features a state-of-the-art butchery, popular bakery goods, fresh deli items, fast foods, and an on-site liquor store for added convenience. Renowned for excellence, it has been voted the best store within its franchise nationwide.

One of the standout features of this business is its integrated cold meat manufacturing facility, which operates alongside the supermarket. This in-house production capability sets the business apart from conventional supermarkets by allowing it to manufacture a range of quality cold meat products under its own control.

The factory supplies the supermarket directly, ensuring fresh, consistent products while improving profit margins through vertical integration.

This unique combination of a retail supermarket and an on-site manufacturing operation creates multiple income streams and offers a significant competitive advantage. A new owner has the opportunity to continue supplying the existing supermarket, expand production into wholesale markets, or develop a recognised private-label brand.

The inclusion of this manufacturing facility adds considerable value to the business, making it far more than a traditional supermarket. It is an exceptional opportunity for an investor or owner-operator seeking a well-established retail business with built-in manufacturing capabilities and excellent growth potential.

How does the business operate on a daily basis?

The supermarket operates daily as a high-traffic retail hub, consistently serving a broad community as well as workers from nearby industrial areas. Each day begins with departments preparing fresh offerings—from the bakery producing daily-baked goods to the state-of-the-art butchery cutting and packaging meats for the day’s demand. Staff ensure shelves across all grocery sections are restocked and well-presented, while the fruit and vegetable area is refreshed with quality produce. Multiple checkout points are staffed to maintain steady customer flow throughout the day. The attached liquor store runs alongside the main supermarket, providing added convenience for customers. Overall, the store functions with a strong focus on efficiency, cleanliness, and customer service, maintaining the high standards that contributed to it being voted the top store in its franchise nationwide.

A key feature of this business is its on-site cold meat manufacturing facility, which supplies the supermarket with a range of fresh, high-quality products. This vertically integrated operation provides greater control over product quality, consistency, and stock availability while improving gross profit margins by reducing reliance on third-party suppliers.

The manufacturing facility also offers additional growth potential through the supply of wholesale customers or the expansion of its own product range. This combination of retail and manufacturing creates a diversified business with multiple revenue streams and a competitive advantage over a traditional supermarket.

What Advertising/Marketing is carried out?

Marketing is supported by both the franchisor’s advertising efforts and the store’s own initiatives, including an active Facebook page, word-of-mouth referrals, and regular franchise promotional pamphlets.

What competition exists?

Smaller stores , but not conveniently located like this one

How could the profitability of the business be improved?

More hands on approach

The supermarket is a busy, well-established business that is performing well as is. A new owner could further improve profitability by offering more discounts and promotions to increase customer traffic and sales.

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

To be supplied to serious buyers

Do any have management potential?

The business has managers in place

How involved is the Owner in running the business?

The owner visits the store once or twice a week to oversee operations and ensure everything is running smoothly.

When does the current lease end?

To be negotiated, seller owns the premises which is also for sale with the business but not included.

What are the trading hours?

Monday - Saturday: 7am-6pm
Sunday: 7am-1pm

What are the main assets of the business?

Stock and equipment

Strengths?

-Strong reputation for value, quality, and convenience.
-Prime location with high visibility and easy access.
-Diverse offering including a butchery, bakery, fresh produce, liquor store and a factory manufactoring cold meats.
-Loyal customer base supported by consistent service and competitive pricing.
-Award-winning franchise store with a proven track record.

Weaknesses?

-Reliance on competitive pricing may put pressure on profit margins.
-Established operating model may offer limited immediate cost-saving opportunities.

Opportunities?

-Increase sales through additional promotions and targeted discounts.
-Expand marketing initiatives to attract new customers from surrounding areas.
-Introduce new product lines or value-added services to increase basket size.

Threats?

-Competition from other supermarkets and discount retailers.
-Rising supplier, labour, and operating costs.
-Changes in consumer spending habits and economic conditions.

What is the reason for the sale?

Owner has other business venture/interest
Location

Contact | Enquire

Joe

Joe De Gouveia

LocationSouth Africa, Gauteng

Preferred method of contact

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