You want to sell your shoe business? Then it's good to know what the takeover market in the shoe business field looks like. Shoes make the man. Still do, but the supply is huge. Moreover, the focus is now on excelling online, because that's what it takes for a shoe store to stabilize or even exceed your sales figures.
The number of acquisitions in this industry shows a relationship with economic 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 retail, the sector to which shoe stores belong, an indicative range of EBITDA multiple 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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The number of physical shoe stores has been declining for years. In the past three years, 155 shoe stores disappeared from the scene. Many larger organizations are visible in this industry, and therefore the number of businesses with two or more employees is relatively high.
In figures, the number of shoe 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 over the next few years, but also offer shoe stores many growth and acquisition opportunities:
Everyone needs shoes. From comfortable sneaker to custom pump and from brand to unbranded: the demand is enormously broad and the search is shifting from offline to online. As a shoe store, how do you stay on your customers' radar? By being unique in your offering and findable in the search engine. Knowing your target group and reaching them remains a major challenge for the retail industry, according to Rabobank.
Shopping behavior is changing and shoe stores need to change with it. That means the focus of your marketing is shifting from hardcopy flyers to omnichannel advertising. Omnichannel is the rule rather than the exception these days and digitalization is essential for this. The Future Store, a Rabobank initiative, helps entrepreneurs develop and implement this strategy. As a result, a store can remain relevant to its customers and retain its right to exist.
Data collection and virtual reality offer shoe stores and their customers opportunities for successful shopping sessions. Because through data collection, you can give your customer decisive information such as "based on previous shopping experiences, size 41 is the best choice for you." Moreover, with VR technology you can show shoes in 3D, as if you were holding the shoe in your hands. Instantly ordering a product that pleases and fits works a lot more efficiently for everyone.
