Running Supermarket Business for Sale Al Barsha

Key Details:

1. 
   

   Location & Size:

   
   
   
   
   
   • Size: 1,386 sq. ft.
   
   
   • Location: Al Barsha, a popular and growing residential area in Dubai, known for good foot traffic and a diverse population.
   
   
   
   


2. 
   

   Financials:

   
   
   
   
   
   • Rent: AED 132,000 per year (AED 11,000 per month).
   
   
   • Selling Price: AED 1,500,000 (including stock).
   
   
   • Monthly Sales: AED 200,000 to AED 250,000.
   
   
   • Monthly Expenses: AED 70,000.
   
   
   • Agency Fees: 10% of the selling price + VAT (AED 150,000 + VAT).
   
   
   
   

Profitability Breakdown:

• Monthly Sales: AED 200,000 to AED 250,000.


• Monthly Expenses: AED 70,000 (includes rent, staff salaries, utilities, and operational costs).


• Rent: AED 11,000 per month (included in expenses).

Assuming monthly sales of AED 225,000 (average) and expenses of AED 70,000, the gross monthly profit before other costs would be AED 155,000.

Return on Investment (ROI):

• Selling Price: AED 1,500,000 (including stock).


• With an average profit margin (before taxes or other costs) of AED 155,000 per month, the business has the potential to generate AED 1,860,000 annually before accounting for other potential overheads.


• Based on this, the investment could be recovered within 10-12 months, making it a potentially lucrative investment, depending on other factors such as market conditions, competition, and operational efficiency.

Considerations:

1. 
   

   High Sales & Profit Potential: The monthly sales of AED 200,000 to AED 250,000 suggest that this is a busy and well-performing supermarket. The strong sales figures paired with relatively moderate expenses suggest a healthy profit margin.

   
   


2. 
   

   Stock Included: The selling price includes stock, which adds immediate value for the buyer. Assessing the stock value is important to ensure it’s current, relevant, and in good condition.

   
   


3. 
   

   Operational Efficiency: Review all costs, including the breakdown of monthly expenses, to confirm that the stated AED 70,000 is accurate and covers all necessary operational expenditures.

   
   


4. 
   

   Agency Fees: The 10% agency fee of AED 150,000 + VAT is a significant additional cost to consider when calculating the total investment.

   
   

Recommendations:

• 
  

  Detailed Financial Review: Although the numbers look favorable, it’s essential to conduct a thorough review of all financial records, including detailed monthly sales, expenses, and profit statements to confirm that the business can sustain these figures.

  
  


• 
  

  Growth Potential: Explore whether there are opportunities to increase sales further or reduce costs to improve profitability, such as introducing new products, services, or optimizing operational efficiency.

  
  


• 
  

  Stock Valuation: Ensure that the stock included in the sale is properly evaluated and represents good value for ongoing operations.

  
  

This supermarket in Al Barsha appears to be a solid investment with strong monthly sales, reasonable expenses, and the potential for a quick return on investment. However, careful due diligence is crucial to confirm the profitability and sustainability of the business.

About RVRG Real Estate: RVRG Real Estate specializes in commercial and residential properties across the UAE, offering comprehensive real estate solutions. Our services include property sales, where we facilitate smooth transactions ensuring sellers connect with qualified investors. We assist buyers and investors in identifying lucrative investment opportunities, providing tailored leasing solutions to maximize returns. Our market analysis guides informed decision-making, while negotiation support ensures favorable terms. Additionally, our property management services efficiently handle diverse portfolios, ensuring client satisfaction and value creation.