Shaver Shop for sale as CEO outlines competitive growth strategies

ARsignupShaver Shop’s current owners are looking to sell the business, with CEO Cameron Fox confirming that the Information Memorandum was distributed to interested parties last week.

The Australian Financial Review reported that after more than four years running the business, Shaver Shop’s owners – “a group of high net worth investors put together by former banker Brodie Arnhold’s Arnhold Investments” –  were looking to sell. Potential buyers were reportedly told that Shaver Shop expected $11 million in earnings before interest, tax, depreciation and amortisation (EBITDA) this financial year and, that the owners are “expected to seek about seven or eight times earnings, which would imply up to a $100 million asking price.”

Fox declined to confirm the EBITDA forecast made by the Australian Financial Review due to the confidential nature of forecasts. He did however state that Shaver Shop’s total sales revenue over CMAT (current MAT) is approximately $127 million with sales growth of +11 per cent or up $12.5 million on the prior year. Same store growth is 7-8 per year on average over the last 5 years.

“Online sales are certainly showing very strong growth, but off a relatively low base,” Fox told Appliance Retailer.  “Bricks and mortar remains the lion share of Shaver Shop total company revenue. Like for like store sales remains positive and very healthy across our traditional bricks and mortar business.”

Fox also outlined Shaver Shop’s general strategy to grow its earnings, including opening no less than 25 profitable Shaver Shop greenfield sites in Australian market over the next three years.

Currently there are 85 Shaver Shop stores located across Victoria, New South Wales, Queensland, South Australia, Western Australia, ACT, Northern Territory andTasmania. Head office-owned stores account for 65 per cent of all Shaver Shop stores and Fox said they would “continue to increase corporate ownership of Shaver Shop stores where terms are mutually agreeable to both franchisor and franchisee.”

The retailer also plans to increase its footprint in New Zealand by expanding the Shaver Shop store network from three to 12 within the next 18 months. Shaver Shop opened its first New Zealand store in June 2014.

Another growth strategy Fox highlighted was to solidify investment in staff training with the launch of the Shaver Shop hair removal central training facility in Melbourne.

Fox said Shaver Shop will expand into new personal grooming and lifestyle categories that deliver incremental sales and profit whilst supporting overall Shaver Shop brand equity, while continuing to offer a wide product range across all hair removal technology types and price points.

In regards to their relationship with suppliers, Fox said Shaver Shop will “continue to work collaboratively with our suppliers in developing in-store merchandising solutions that engage and educate consumers about what type of hair removal solution is right for their specific needs.”
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