Is an orthotics clinic’s shoe retail side worth checking separately before I buy?

Begin by asking how the two sides connect. Do shoe customers become patients, or do patients buy shoes after a visit? Ask staff, not only the owner. A retail side that feeds the clinic is a different thing from one that simply shares the rent.

Next, request records for the shoe side alone: sales by category, cost of goods, markdowns, staff hours and stock on hand. Walk the floor. Look for dated styles, odd sizes and shelves filled with items that have not moved. Ask how stock is bought, whether seasonal commitments exist and what happens to unsold pairs.

Finally, think about fit with your plans. Do you want to run a retail operation, hire a manager or reduce the shop? Your accountant can show how each side contributes to results and what happens if one shrinks. Ask whether any supplier agreements depend on the two being together, and whether the clinic could stand alone if you wanted it to. Also look at who works the shop floor and whether those staff are trained to recognize when a customer should see a clinician. That link often decides whether the two sides help each other. Ask whether staff are paid differently on each side.

Key takeaways

• Ask staff how clinic patients and shoe customers overlap.
• Get separate sales, costs, stock and staff hours for the shop.
• Check shelves for dated or slow stock.
• Decide whether you want to run retail at all.