Post by
microcaphobby on Oct 13, 2020 11:02am
sorry for confusion
According to the pr the 8 Alcanna stores made pre-tax profit of $237,500 per store
Rum $35,000 per store
both companies had similar gross margins in the 2nd q
Now if RUM could entice customers to buy something besides cheap beer then its store profit would get better. I suppose Alcanna had a much more valuable inventory than Rum so the sale price per store may not be the best comparison. I would need to see a breakdown of the sale price to get a better idea of the the price paid per store. Lower margin businesses can still thrive. Look at Dollarama; you just need to get the sales up
Comment by
jcorobow on Oct 16, 2020 12:29pm
Another detail about the alcanna transaction - The purchase price of the stores on Vancouver Island includes inventory and other assets, and is subject to standard post-closing adjustments. Liquor stores are typically priced not including inventory, with an additional value being added for inventory.