Family run store may close after 35 years

Soldato
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Family run general store / newsagents may close after 35 years.

After a few hard years my family is considering closing the store which my grandmother purchased the sin the early 80s to help support her family at that time it use to sell all the basics nearly all my familly has had a hand in running it over the years, it was took over in the 90s by my mum who would get up early hours deal with us, send us to school then run the store all day the return home after 6, we use have 2 other corner stores on the same road, one of which was dead across from us, we got along really well even if we both had the same type of store, in the mid 90s my uncle added newspapers to the store which help a little, then in the mid to late 2000s things started slowing down.

Recently things have got really bad,
We now have 6 stores on the same road, the new store across of us sells fake fags and cheap booze so that does not help.
Supermarkets do give us a good kicking a lot more then they use to, even more so now with east online shopping.
Most of the locals have left the area over the years when people from eastern Europeans started moving in we only have some family's and some old people, we always had a mix of people in the areas so that did not really stand out much at the time but most of the European dont spend much on things unless its not available in the other store and even then they try to barter, integration with the eastern Europeans has been l lot harder then any other.
being load and loitering has also been a issue
We get a lot of daily thefts so we had to get CCTV.
The daily intake would not even cover a persons wage on most days.
for some reason our tax returns are more then we make, I feel out accountant if not doing the job
due to hard time the store was remortgaged in 2010 at a stupid rate, so the monthly repayment is well above what it should be.
Then you have the normal bills which go up each year.

Even if we close the store we still have a huge mortgage to pay.

What are you thoughts ?
 
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Soldato
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You run a business to make money, if you aren't making money then the business needs to change. Sentimentality and business shouldn't go together, it's a numbers game
 
Soldato
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Presumably they have a house away from the store though so bankruptcy may not be the best option.

As above, maybe you need to try and diversify a little more. If the shop accross the road is busy due to selling cheap booze then maybe you should also try and sell cheap booze? The fact you've gone from 3 stores to 6 on the same road suggests the market is there.
 

daz

daz

Soldato
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I take it you own the store freehold? I would look to see if you can get alternative use for different a different businesses (e.g. fast food); you can then either run the business yourself or rent it out to someone looking for that kind of premises. Or potentially look at residential conversion.
 
Associate
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My parents had an estate corner shop for over 50 years
My mum sold the premises (business was worth next to nothing) about 3 years ago following the death of my dad a couple of years earlier
They saw the same downturn as you described and in the end were earning very little from a business that had supported them more than well for most of their lives
I had advised them change the business to a pizza shop (none on the estate or very near) or separate the rear of the shop into such a business. They also rented the top floor (it was a big end terrace) to a hairdresser. i also advised them to change that to a flat to make the business more desirable to a sale but they did not.
Basically, if you are stuck with the property, be prepared to change its use and maximise the full 24hrs in the day to get the most income would be my advice
 
Soldato
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If you're sure they're selling counterfeit cigarettes and alcohol, then get them reported for it. Even greater health dangers than normal with those products.
 
Caporegime
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If you're sure they're selling counterfeit cigarettes and alcohol, then get them reported for it. Even greater health dangers than normal with those products.

Not very capitalist of you ;_;.

To the OP, it's a question of becoming a niche experience (selling £50 vegan sandwiches to hipsters), cutting your loses now or eventual collapse later. (assuming rate discounts are already in use)

Or you know make the 50th kebab shop.
 
Soldato
OP
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29 Dec 2012
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4,080
Why not try selling goods and food from Eastern Europe?
We did try a few options but they never sold and we dont want to sell fake fags or booze.

Presumably they have a house away from the store though so bankruptcy may not be the best option.

As above, maybe you need to try and diversify a little more. If the shop accross the road is busy due to selling cheap booze then maybe you should also try and sell cheap booze? The fact you've gone from 3 stores to 6 on the same road suggests the market is there.
the shop is part of a house.
and its not cheap I would class it more as fake or duty free. so I think they may not be declaring everything,

I dont know too much about all the store but here is the basics, first store, only cheap booze, fags and the basics its right at the top of the road so it also cover another area which does not have a store, store 2 has only been open for 6 months, store 3 is the one selling the fakes, store 5 is at the bottom of the road and also covers store 6 is more of a Pakistani supermarket.


You maybe right we could be doing something wrong or it could be because we are too close to use. but they others area slightly away from each other.

Whilst the sentimentality is nice n all that, as above - its a numbers game. Those other shops, like selling the knock-off ciggies are in it for the numbers game.

Times change. Sometimes the cut your losses is the better way long term.
This is what I have been saying the only reason we have not closed was because of my granddad, the loyal customers have moved away.


Turn it into a bookies

In all seriousness, I think take aways or small cafes are doing ok.

Apart from that good luck.

bookies no thanks we had a new one open a few years ago near the first show, it did not last long after getting robbed a few times.

takeaways may need some work or but a small cafes maybe if some people dont start bartering over the tea and coffee.

I take it you own the store freehold? I would look to see if you can get alternative use for different a different businesses (e.g. fast food); you can then either run the business yourself or rent it out to someone looking for that kind of premises. Or potentially look at residential conversion.
Yes we do, We have not considered anything yet but we are looking at option, we only 2 people run the store at different times one of which has a 2 year old, the rest of us have jobs so it may need to be something that does not need much staff. We have also thought about just renting out the place.

potentially look at residential conversion. the back is already residential its just the front.

My parents had an estate corner shop for over 50 years
My mum sold the premises (business was worth next to nothing) about 3 years ago following the death of my dad a couple of years earlier
They saw the same downturn as you described and in the end were earning very little from a business that had supported them more than well for most of their lives
I had advised them change the business to a pizza shop (none on the estate or very near) or separate the rear of the shop into such a business. They also rented the top floor (it was a big end terrace) to a hairdresser. i also advised them to change that to a flat to make the business more desirable to a sale but they did not.
Basically, if you are stuck with the property, be prepared to change its use and maximise the full 24hrs in the day to get the most income would be my advice

Thanks this sound a lot like us, The show front is large with a lot of large windows but its not very deap maybe the 12ft - 14ft
the back residential house part is already rented but it only covers less then half the mortgage, as for pizza or takeaway I assume it will need access to kitchen, which it does not have access to the shop only has electrics and telecom.

Surely you simply report the other store selling dodgy cigarettes to trading standards?
We have and I think they have been done in at least one but they changed the owner and started again with a few more tricks, We even get people from other areas coming for them.
 
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