Right site for gift shop

Mall area is a top spot for this Porirua bargain store.

HIGH FOOT traffic, low prices and gross profits of nearly 60 per cent make a Porirua variety store a tempting first step into retailing.

Bargain City, at Shop 207 in the North City Shopping Centre, is an independent store that specialises in low to medium-priced gifts.

The wide range of merchandise includes homeware, hardware, stationery, cards, clothing, pet accessories, party items, candles, toiletries, hair accessories, jewellery, craft, flowers, ornaments, gifts, and souvenirs.

‘‘It was originally a $2 Shop but the owners opted not to renew the franchise agreement in 2009 and instead have developed a very successful venture of their own,’’ Tony Shalders, of ABC Business, says.

‘‘It’s easy to run and the location couldn’t be better – more than 4.4 million people a year pass through the doors of the North City Shopping Centre, and Bargain City is the first stop off the travelator on level two.

‘‘The foot traffic is exceptionally high because it’s enroute to major retailers like Pumpkin Patch, Stevens, Whitcoulls, Farmers and The Body Shop as well as the food court.’’

They’re among the 100-plus stores that make the North City Shopping Centre a drawcard for Wellingtonians from all over the region, Shalders says.

‘‘It’s just 15 minutes’ drive from Wellington City and offers more than 1100 free car parks.’’

Two working owners run Bargain City with the help of MYOB Retail Manager software, which generates reports on staff performance, sales figures and items sold.

‘‘It controls all aspects of stock control, from purchase orders and receiving stock to sales and stock reconciliation,’’ Shalders says.

Stock is sourced from New Zealand-based suppliers. Either their representatives call in to discuss orders or the owner places orders on a supplier’s website.

‘‘Being an independent retailer allows Bargain City freedom of choice with both suppliers and stock,’’ Shalders says.

‘‘The product lines and price point can be changed at any time to capitalise on market trends, and the business can take advantage of supplier run-out lines and add higher margin stock items into the mix.’’

There are two stock indent seasons: orders placed in February– March are delivered AugustSeptember, and those placed in August–September arrive in February–March.

‘‘Indent orders for Christmas 2016 and calendars for 2017 have already been placed and next season’s indent orders are currently being organised,’’ Shalders says.

‘‘The owners will also provide comprehensive training in all aspects of the business as part of the asking price, so retail experience isn’t necessary.

‘‘They are selling the business after 15 years of excellent year-on-year results.

‘‘With gross profits of nearly 60 per cent and the freedom of choice that only independent decision-making can allow, this has to be a great first step into retailing.’’

Bargain City has an asking price of $407,000 (plus stock of about $63,000)

For more information, contact Tony Shalders on 499 3318, 027 759 2990 or at: tonys@abcbusiness.co.nz