You want to sell your baby or children's fashion store? Then it's good to know what the takeover market in terms of baby or children's fashion stores looks like.
Baby or children's fashion stores come in all shapes and sizes. The number of online orders is increasing exponentially, but what happens to existing baby or children's fashion stores? As the owner of a baby or children's fashion store, you have to get creative and capitalize on trends.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the retail sector, which includes a baby or children's fashion store, an indicative EBITDA multiple range of 1.9 to 3.0 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Want to buy a business or sell a business in the retail sector? With this Brookz Sector Monitor we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in the retail sector. Because in any buying or selling process, thorough preparation provides peace of mind, overview and structure.
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In figures, the number of baby or children's fashion stores in 2024 looked as follows(CBS):
With this online training from Brookz you are optimally prepared to largely sell your business yourself: 25 Powerpoint videos, a comprehensive valuation report, legal model contracts, handy templates, checklists and expert support. Plus 50% discount on listing your business on Brookz!
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A number of trends and developments will inevitably cause changes in the coming years, but also offer baby or children's fashion stores many growth and acquisition opportunities:
Sustainability is gaining momentum in all sectors, including retail. Consumers are increasingly making conscious purchases, resulting in more sustainable brands and a higher quality selection of children's fashion.
A physical without its own platform is definitely missing out on customers. However, baby and children's fashion stores are not yet 100% set up for this shift towards an omnichannel strategy. The stores still mainly rely on shoppers, but with a large decrease in the number of niche stores, online will still offer more opportunities. Vakcentrum reports that the number of outlets has been decreasing dramatically for years, making a digital strategy essential.
Integrating the online world into your physical business is a promising trend, according to the Chamber of Commerce. Use an app in the baby or children's fashion store to instantly check whether a particular garment fits your baby properly and what size you need. And pay with your phone, so you don't have to wait in a gigantic line at the checkout, because as parents you're busy enough as it is.
