What should I check before buying a lingerie or bra-fitting boutique?
Look at the stock, the brand accounts, the fitters and the client records. Check how many sizes sit unsold, whether each brand will sell to you as the new owner, whether the fitters will stay, and whether fitting records and the online store come with the sale.
Each style comes in many band and cup sizes, so the shelves hold far more individual items than the room suggests. The shop’s reputation also rests on the people doing the fittings. A buyer who counts only the till receipts will miss both, so start with the stock and the staff before you look at the rent.
Read the size run, not just the stock total
Ask for stock by brand, style and size. Common sizes move quickly, while the outer sizes can sit for seasons. Ask how old the slow stock is, how it has been marked down in the past and whether any of it is damaged or discontinued. Plan a physical count at closing. A full stockroom can hide a lot of items the shop will never sell at full price.
Confirm each brand account will carry over
Many lingerie brands sell only to approved retailers. Ask the seller which accounts are open, what minimum orders apply and whether any brand has to approve a new owner. Then ask the brands themselves, with the seller’s permission. Ask what happens to the shop’s sales if your best-selling label will not open an account for you.
Find out who the clients come back for
Fitting is personal. Many clients return for one fitter, not for the shop. Ask who does the fittings, how long each has worked there and what the seller expects them to do after the sale. Ask whether client notes and fitting records exist, whether they can be shared with a new owner, and whether privacy rules affect that. Your lawyer can advise on that.
Look at the online store and the paperwork
Check whether the website, the customer email list and the social accounts are in the business’s name or the owner’s. Ask how online orders and returns are handled, since returns on fitted items can be costly. Your accountant can review how stock is counted and recorded. A page on fitter retention in a health-retail shop covers a similar staffing question.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernmentWhat are financial statements?
- 04Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
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