Baby gear operation tipped to grow

A wide variety of baby gear is on display in the Grey Lynn showroom. Photo / Supplied

Baby on the Move Auckland Central, a Grey Lynn business specialising in children's car seats, is for sale.

LINK Business sales agent Nick Stevens describes the boutique operation as a profitable multi-layered business; one having various platforms for generating revenue from both over-the-counter and online sales.

"Having gained much knowledge and confidence from working within the franchise model, the owner now wishes to pursue opportunities outside of such a network," says Stevens.

Located in leased premises at 449 Richmond Rd, the business is part of a nationwide network of stores offering specialist advice on children's car seats and other baby gear. The network offers an installation service to customers of any child restraint on the market — whether purchased at Baby on the Move or elsewhere.

"The services offered are built upon a solid foundation of knowledge and expertise — all staff are NZQA-qualified child restraint technicians.

A new owner would also be trained. Car seat sales make up a large slice of sales, with buggies, cots and a wide variety of other baby gear making up additional revenue.

However, a sub-set of the business, and one which generates higher profit margins, derives from rental sales," Stevens says.

"There are more than 600 items in the hire stock inventory with the largest category being the hire of bases and capsules for newborns.

"These account for more than 75 per cent of hire items, maintaining a solid income stream with six months being the standard hire period. Short-term visitors to Auckland make up another portion of hire sales.

"The owner purchased the business nearly four years ago, now having made significant changes and improvements, including shifting to the present premises, which has additional customer parking."

Stevens says revenue has tripled and the profit margins have been well maintained during the present owner's tenure.

"Growth prospects are excellent, with the store located within a growing area with a high socio-economic profile.

"Also, this owner has shown considerable skill and commitment in refining the business, having streamlined staff hours, boosted training and improved internal processes, stock selection, margins and revenue."