Luxe Nantucket Cashmere Retail
Nantucket PJM Corp. (dba Johnstons Cashmere) is a Massachusetts S Corp. which operates a long established (founded 1997) luxury retail clothing store located in the central business district on the well-known vacation island of Nantucket. The store primarily serves the high net worth individuals who have vacation homes on the island. The product offering consists mainly of cashmere sweaters, accessories, and sportswear
Overview of sales and earnings
See owner’s annual discretionary earnings (Appendix II.).
Key strengths and attributes
• Stability: The business has been in the same location for 17 years with stable sales and profits.
• Seasonal Cycle: The business is seasonal (April-December) which allows for unique lifestyle opportunities during the considerable down time. The luxury fashion industry component also affords travel opportunities; overseas and domestically.
• Staff: Johnstons Cashmere has an experienced General Manager/Buyer in place with many years of experience both in luxury retailing and fashion trends on Nantucket. In addition, there is a long time, excellent salesperson who intends to stay after the sale.
• Work environment: The retail area consists of the entire ground floor of the building at 4 Federal Street. The business is fortunate to have the entire second floor of the building as well which is used now as office space and storage but was originally a one bedroom apartment complete with kitchen and washer/dryer. This space could be re-used as an apartment if desired. Operating a business in the heart of Nantucket’s core district is a pleasant experience. There are many places to eat, many ways to meet other merchants, and many ways to become part of the community.
• Location: Nantucket Island is an attractive place to operate a business, with a very dynamic retailing scene, free from chain stores and discounters. Nantucket itself is the premier summer destination for high net worth individuals in America. The location of this business in the heart of the island’s only business district is highly desirable. The building itself is an attractive standalone structure at the intersection of the two main business streets.
• Processes: The current owners, after a quarter century of high end retailing, have lain down processes for every facet of operating a retail business. Examples of these processes are an organizational chart, employee manuals, training documents, and customized computer programs. All of these are included in the sale price. Training in these processes, such as is necessary, can be provided by the current owners. The owners have been retailing in this market for over 25 years. There are many not so obvious benefits of this expertise: streamlined business processes, state of the art fixtures, and specialized accounting practices (to name just three) which make this business attractive.
• Customer base: The business uses the CAP Sellwise point of sale software program. Sellwise tracks customers by name, purchase amounts, items, annual sales, etc. Our top customers are all in the four figure category of sales with a few in five figures. Most of these repeat their level of purchases from year-to-year. In addition to the software program, management and sales staff keep copious notes on customer preferences, sizing, and favorites. Johnstons Cashmere actively supports local non-profit organizations that are of interest to its clientele.
• Reputation: The business has a sterling reputation in the community, and among our customers and suppliers. Johnstons Cashmere Nantucket is considered a business leader on Nantucket due to its longevity, participation level with the local Chamber of Commerce, support of community, high quality product, and reputation among customers and suppliers.