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Abdi Nabil (AFM) Brisack Kathleen (OLM) Chabeau Valrie (HRM) De Winter Marie-Laure (AFM assistant) Saidov Sad

(SMM) Vanophalvens Marie (PL)

ID 05

Business plan COMEX L&S Ltd

CEO V. Ravet

Mega Leisure and Sport store

Year 2010

Why going elsewhere? We have everything youre looking for in equipment and in sportswear

Table of contents
1. 2. 3. 4. 1. 2. 5. 1. 2. 3. 4. 5. 6. 1. 1. 7. 1. 2. 8. 1. 2. 9. 1. 2. 3. 4. 5. 6. 10. 1. 2. 3. The company ................................................................................................................................... 1 The projects team of Belgium ........................................................................................................ 1 Motivations of the company ........................................................................................................... 1 Our project ...................................................................................................................................... 2 Description .................................................................................................................................. 2 Corporate identity ....................................................................................................................... 2 Our products & services .................................................................................................................. 2 The products................................................................................................................................ 2 The quality ................................................................................................................................... 2 The width of the assortment ....................................................................................................... 2 The depth of the assortment....................................................................................................... 2 The services ................................................................................................................................. 3 The Belgium market ........................................................................................................................ 3 The market .................................................................................................................................. 3 The competitors .......................................................................................................................... 4 The location ..................................................................................................................................... 5 Situation of the point of sales ..................................................................................................... 5 Features of the commercial area ................................................................................................ 7 The turnover .................................................................................................................................... 7 Turnover for the three years ....................................................................................................... 7 Seasonality................................................................................................................................... 8 The strategy ..................................................................................................................................... 9 The target .................................................................................................................................... 9 The positioning ............................................................................................................................ 9 Promoted products and services................................................................................................. 9 Our objectives ............................................................................................................................. 9 Marcom ..................................................................................................................................... 10 Swot ........................................................................................................................................... 12 HR .............................................................................................................................................. 13 The paritary committee 311 ...................................................................................................... 13 Labor law in Belgium ................................................................................................................. 13 Staff composition and salary cost ............................................................................................. 13

4. 5. 11. 1. 2. 3. 4. 12. 1. 2. 3. 4. 5. 13. 1. 2. 3. 14.

Organization chart ..................................................................................................................... 14 Other costs related to our staff ................................................................................................. 14 Means of production ................................................................................................................. 16 Area and possibilities to extend our store ................................................................................ 16 Arrangement and installation ................................................................................................... 16 Equipment, furniture and vehicles ............................................................................................ 17 Suppliers .................................................................................................................................... 17 Financial dossier ........................................................................................................................ 18 Investment budget .................................................................................................................... 18 P&L forecast .............................................................................................................................. 19 Balance sheet ............................................................................................................................ 21 Ratios ......................................................................................................................................... 22 Financial help............................................................................................................................. 23 Exchange rate, VAT, insurances................................................................................................. 23 Exchange rate ............................................................................................................................ 23 VAT ............................................................................................................................................ 24 Insurances.................................................................................................................................. 24 Conclusion ................................................................................................................................. 24

The 2nd Comex L&S Mega store in Belgium ....................................................................................... 24 15. 1. 2. 3. 16. Sources ...................................................................................................................................... 25 Webography .............................................................................................................................. 25 Bibliography............................................................................................................................... 25 Interviews .................................................................................................................................. 25 Appendix.................................................................................................................................... 25

1. The company
Comex L&S Ltd is part of the Group Comex Ltd, established in 2003. It is an international group from UK which owns several branches in numerous sectors. Comex L&S isnt only active in UK but also in Ireland, Spain, Austria (franchise) and Germany. Our core business is the retailing of leisure and sport items, where all major international and local brands are available. The company covers all possible activities in leisure and sport (ski, fitness, swimming, horse riding, football, basket-ball, ). The concept is to open the biggest leisure and sport store in Belgium with high quality products and attractive prices. It doesnt mean that it is a hard discounter; the image of the brand will be respected. The CEO of Comex Group Ltd is Vincent RAVET, the COO is Isabelle BROUWERS and the CFO is Fabienne VAN DEN BERGH.

2. The projects team of Belgium


COMEX Ltd sent a team of six members of its staff to investigate the Belgian market in order to invest in this country. Marie Vanophalvens, Project Leader, and her team have been in Belgium for six weeks to study the feasibility of opening a new mega leisure and sport store. The team is composed of an Administrative and Financial Manager, Nabil Abdi and his assistant Marie-Laure De Winter, Marketing and Sales Manager, Sad Saidov, a Logistic and Operational Manager, Kathleen Brisack and finally, a Human Resources Manager, Valrie Chabeau.

3. Motivations of the company


The aim of Comex Group is first to spread the company in Europe and then in the whole world. Belgium is the next market where the Group wants to invest in implanting a new store. The company wants to attack a regional market as a beginning and is planning to reach the national market with a second store.

4. Our project
1. Description
We want to develop the company in Belgium in opening a L&S store in Flanders. The city of Ghent was selected. We will sell all products in leisure and sport. The company in Belgium focuses on the retailing, whereas the production plant is located in UK.

2. Corporate identity
The name of the branch is Comex L&S. The business purpose is a megastore of leisure and sport items. Its legal form is a Public Limited Company (Ltd). Regarding to the creation (articles of incorporation, companys statuses,) we will call a business lawyer firm, LIEDEKERKE1 to help us in the constitution of our business unit. The companys criterias meet features to a large company.

5. Our products & services


1. The products
Our store will propose 15.000 references which cover every kind of sport. But we will also offer beverage (ex.: energetic beverage) and energy food. Comex L& S will buy the products from the purchasing central from Comex Group. Moreover, we will also have local brands as Tolga2 (horse riding equipment), Scarecrow3 (wakeboard and surf), Marie Jo Intense4 (sport underwears), Purple Products5 (fishing products)...

2. The quality
The quality concerns as well the clothes material as the resistance of equipments. The quality will obviously differ from a brand to another.

3. The width of the assortment


The assortment we propose is so complete that each person will be equipped whatever their activities (jogging, running, trail, campaign, bicycle, welfare, games, horse riding, martial arts, water sport, outdoor activities ).

4. The depth of the assortment


In each brand, we will offer a huge choice to respond to all kind of customers expectations.

1 2

Appendix n1 www.tolga.be 3 http://scarecrow.be 4 www.mariejo.com/home/intense/fr/default.aspx 5 www.purpleproducts.be

5. The services6
Our marketing department imagined several services to boost the sales and to improve our customer relationship. Services to boost our sales and image7 Gift voucher Gift guide by topic Acceptation of Eco Pass and Eco checks Ski & snowboard rental A COMEX L&S online Magazine Pro solution Comex L&S loyalty card A delivery service Online shopping

6. The Belgium market


1. The market
A. General information The total population of Belgium is approximately 10,8 million8 inhabitants. We have to pay attention to the main KPIs in Belgium. The inflation rate has reached 2,11%9 in 2010 and the annual GDP in 2009 decreased by 3% compared to 2008 and amounts to 337.75 billion10. The unemployment rate11 represents 8,7% of the total population. Brussels experiences the highest percentage of unemployment (17%) followed by Wallonia (12%) and then Flanders (5,6%). Concerning the economic growth, Flanders was the most touched by the economic recession of 2009 (GDP of Flanders -3,3%)12. In 2010, the growth rate has increased, especially thanks to the good performances of export. The growth of the Belgian economy should reach 1,7 % in 2011 thanks to the growth of exports that should again accelerate13. Indeed in 2011, the progression of the employment and the property incomes14 will generate an increasing of 1,5% of the purchasing power. In this context, the household savings will decrease for 2011. This would generate a rise of the private consumption by 1,4% in 2011. B. Bankruptcies It is important to keep in mind that all companies can go bankrupt in Belgium. Indeed, the region where our first store will be established has the highest number of bankruptcies (4.983) followed by Wallonia (2.649) and then Brussels (1.788)15.

6 8

Appendix n2 http://www.ducroire.be/WebDucDel/Website.nsf/AllWeb/Belgium?OpenDocument&Disp=1&Language=fr 9 http://statbel.fgov.be/fr/statistiques/chiffres/economie/prix_consommation/indices_prix_consommation/inflation/index.jsp 10 http://www.lalibre.be/economie/actualite/article/563527/le-pib-de-la-belgique-a-recule-de-3-en-2009.html 11 http://statbel.fgov.be/fr/modules/pressrelease/statistiques/marche_du_travail_et_conditions_de_vie/nouveaux_chiffres_de_eft_premie r_trimestre_2010.jsp 12 http://www.plan.be/press/press_det.php?lang=fr&TM=64&IS=67&KeyPub=978 13 http://www.plan.be/press/press_det.php?lang=fr&TM=44&IS=67&KeyPub=988 14 http://www.plan.be/press/press_det.php?lang=fr&TM=44&IS=67&KeyPub=988 15 http://statbel.fgov.be/fr/statistiques/chiffres/economie/entreprises/faillites/ans/index.jsp

C. Political situation There are ongoing discussions between Flemish and French speaking politicians to see how the country could be reorganized. Actually, since federal elections of June 13th 2010, after 6 months, Belgium doesnt have a government. The problem comes from the negotiations between the 7 parties (N-VA, PS, CD&V, sp.a, cdH, Ecolo and Groen !) about the financing law which is the core element of State Reform and which would increase the (financial) responsibility of the regions. Actually, the N-VA (a Flemish party) wants a bigger independence about employment policy, family allowances, a part of justice, ... , and up to 45% of the income tax. The king has appointed Johan Vande Lanotte, the former Flemish socialist (sp.a) minister of Budget, for a conciliation mission. D. Real Estate The Belgian real estate market has been fairly stable over the last few years. Despite the economic crisis, rents have held up and even though the take up has slowed down, the occupancy rate remains very high (on average between 95% and 98%). The real estate and the rents are not as expensive as UK, France and Germany. In Belgium, every property is subject to a real estate property tax. The tax depends on the revenu cadastral assigned by the local authority and to which a specific percentage is applied16. E. Flanders and our sector In 2008, they were 157 leisure and sport stores in Belgium for a total of 173.055 m. The distribution in term of number of point of sales and sales area by square meters is as follows17: Regions Brussels Flanders Wallonia Number of store 12 96 49 Total square meters 15.000 m 105.330 m 52.725 m

In Flanders, the district which has the biggest population is first of all Antwerp with 472.071 people. At the second place, we have Ghent with 237.250 people. At the third place, we have Bruges with 117.073 people18.

1. The competitors19
A. Direct There is a lot of competition in our sector. Indeed, there are European leader companies which have already a good awareness in Belgium and even in Europe. The leader in Belgium is Decathlon with 12 stores followed by SportDirect.com and the third one is A.S. Adventure. They are in full expansion and theirs T.O. dont cease to increase. The competition is more and more important. However, there are also other direct competitors which arent negligible.

16 17

Market Snapshots Q4, 2010, Cushman 1 Wakefield http://statbel.fgov.be/fr/statistiques/chiffres/economie/commerce/nonalimentaire/index.jsp 18 http://statbel.fgov.be/fr/statistiques/chiffres/population/structure/residence/plus/index.jsp 19 Appendix n3

B. Indirect There are many indirect competitors in Belgium like Foot Locker, Cora, Esprit... which dont propose so many references as us. Some of them are not really specialised but they are holding significant market shares. The most important indirect competitor is Foot locker20.

7. The location
1. Situation of the point of sales
Our store is situated in Ghent Zwijnaarde and more precisely 76, Oudernaardsesteenweg, 9052 Zwijnaarde (Ghent).More concretely, it is a former hypermarket Carrefour which has closed its doors. We chose this one because Ghent is the second most populated city in Flanders after Antwerp and there was a huge sales area available.21 A. Natural flow of pedestrians This point of sales is quite good served. Indeed, there is a bus stop de deynestraat with several buses (44, 48, 49, 70, 71, 72) which pass just in front of this one. These busses pass by Merelbeke, Zottegem, Oudenaarde and Ghent. Secondly, the entry of this point of sales is by the N 60 which joins the highway E 40 (Brussels Oostende) at about 1 km.

20 21

Trends Appendix n4

B. Catchment area Our catchment area is 50km around Ghent. It includes Aalst, Bruges, Kortrijk, St-Niklaas and Dendermonde. However, there are also some little cities around.

Cities of the catchment area Ghent Aalst Bruges Kortrijk St-Niklaas Dendermonde Total population

Population 237.250 77.790 117.073 74.200 68.800 43.200 618.313

Main competitors SportDirect.com, A.S. Adventure, Intersport A.S. Adventure Decathlon, SportDirect.com, A.S. Adventure Decathlon, SportDirect.com, A.S. Adventure A.S. Adventure, SportDirect.com There is not one of our main competitors

2. Features of the commercial area


Sales area: 4.357 m Storage area: 3.727 m Lunch Garden: 719 m Total area: 8.803 m Parking places: 480 places (129 underground places, 204 places on the roof and 147 in surface).

8. The turnover
1. Turnover for the three years
2011 14.278.260 2012 21.417.390 (+50%) 2013 29.984.346 (+40%)

Turnover

Decathlons turnover in 2009 amounts to 197,036,683 for its 12 stores in Belgium. It is equal to 16.419.723 for one store (197.036.683/12). The T.O. we expect for 2011 amounts to 14.278.260 (-15% of the decathlons one for 2009). Then for 2012 we expect an increasing about 50% because of the communication plan we made with PTOC and the location of our store. Indeed in 2011 there will be 3 big waves of communication to build our awareness in Belgium and to attract people. Then in 2012 we will continue our advertising campaign via PTOC (2 big waves of communication) and the word of mouth will also increase. This is why we expect an increase about 50% between the first and the second year. Moreover our store is located in a place where they are other shops and they are also national and highway. Finally in 2013 our T.O. will continue to increase because of the awareness that we will have and the word of mouth there will be. In fact we will also attract people outside our catchment area and the communications waves will continue (2 for 2013). So our T.O. will increase about 40% between the second and the third year.

2. Seasonality
A. Expectations for the first year The first year of operation will be different. We have estimated the monthly sales in the table below. Due to the fact that we wont have any awareness, we have to expect higher losses in the first months. To understand better the impact on our turnover we have to determine the seasonality ratio month per month. The seasonality ratio is a percentage of the annual turnover.
Seasonality ratio The turnover * ratio

September 8% October November December January February March April May June July August Total 4% 5% 10% 9% 3% 8% 10% 10% 12% 11% 10% 100%

1.142.260 571.13040 713.913 1.427.826 1.285.043 428.347 1.142.260 1.427.826 1.427.826 1.713.391 1.570.608 1.427.826 14.278.260

B. Expectations for the following years The real impact of the seasonality will be felt only from the second year. We expect February to be the slowest month as it follows the usual sales period of January. In addition to January and July where promotional sales are allowed, the best period for incomes is December. Concerning the slack periods the incomes and the sales are correlated. The slackest period is February due to Seasonality ratio per month Christmas, New Year and the sales period. January 10% July The best periods for incomes are: February 3% August - December during the holiday period March 7% September - June before the vacation April 8% October May June Total 8% 11% November December 100%

10% 9% 10% 5% 6% 13%

9. The strategy
1. The target
We will target all professionals and amateurs sportsmen and families who like to take time to practice a sport or for leisure. Those people will find all major international and local brands according to their budget, under the same roof as expected.

2. The positioning22
Comex L&S, the biggest Belgian Leisure and Sport Store which provides all major international and local brands for all professionals and amateurs sportsmen and families. In our store, each person and family can be equipped according to its budget and its activities. Comex L&S means high quality products with attractive prices and the best customer satisfaction.

3. Promoted products and services


The products and the services we will highlight will be those that make us different from our competitors. Actually, they will be international and local products and some services for amateurs and professionals, which will have the best value for money compared to our main competitors (Decathlon, SportDirect.com and A.S. Adventure). It means that we will promote products and services which are cheaper and with the same or even best quality compared to them.

4. Our objectives
A. To build our awareness in Belgium, we will: (Corporate communication) Launch a series of advertisements more oriented to build an awareness (TV, radio, Clear Channel, newspaper, JC Decaux) thanks to PTOC (a company specialized in the planning and buying of all types of outdoor advertising) Create a website + ecommerce via Booster (a company specialized on creation of website and ecommerce) Try to do a Sponsorship (with Belgian sport celebrities and some international and national brands) Organize an event for the opening of our store with Belgian sport celebrities as special guests and journalists to create a buzz about us in Belgium B. To attract people, we will: (product and brand communication) Launch a series of advertisements more oriented to attract people (promotions, gifts vouchers, brochures and coupons) via PTOC for the communication Propose a Comex L&S loyalty card with bonus points Make a tombola in our website C. To create a customer relationship, we will: Investigate the habits of our customer thanks to our Comex L&S cards Have a good after sale service Create a blog in our website

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Appendix n5
9

5. Marcom
A. Communication tools a) External communication Media and supports Direct marketing Sales promotion Press Public relations Website E-commerce

b) The publicity campaign made by PTOC Indeed the publicity campaign will be made with the collaboration of PTOC during the first 3 years. They made for us an advertising campaign per year. For 2011 they made it according to a budget of 1.5 million and then 930.000 for 2012 and 930.000 for 2013. The rest of the 4million will be spend for the website, the tombola, the event (only the 1st year) and for other kind of communications. PTOC proposed the following marketing plan purpose to do the communication like that : The 1st Year

There will be 3 waves of communications : The 1st one is the following : It will be more oriented to the opening of our store and to build our awareness Advertising campaign23 o To cover the Eastern and Western Flanders with 220 panels of 20m during 7days before the opening of our store and during 7 days after the opening (see an example in appendix) o To reinforce the advertising campaign by 115 full back on bus in Gent, Aalst, Bruges, Kortrijk and St-Niklaas during 7 days before the opening and 21 days after the opening (see an example in appendix) Radio advertisement o On MNM, Q music and Studio Brussels ,spot of 30 seconds during 6 days before the opening and then 8 days to cover the Flemish territory TV advertisement o On VTM, VT4 and 2BE, spot of 30 seconds to cover all Flemish territory 7 days before the opening and 7 days after Thanks to this campaign we will cover those cities but also their surroundings
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Appendix n6
10

A brochure distributed one time in East and West Flanders about our new store

The 2nd and the 3rd wave will be also like the first one but the advertisement will not only be oriented to build our awareness but they will have also the aim to attract people and to highlight the promotions in COMEX L&S. Concerning the length and the period of these advertising waves, they will be +/similar to the 1st wave. For the 2nd and the 3rd year

There will be 2 waves of communication made by PTOC which will be oriented to promote our image and to attract people in our store for the Sales period (July and January). B. Marcom cost
2011 2012 2013

A website24 An Ecommerce25 Event for the opening 20m2 panels26 Full back Radio ads TV ads Brochures (1time) Tombola in our website Production and region taxes Other communications (press, magazines, interim agency) Total of cost

15.000 15.000 200.000 300.000 150.000 300.000 450.000 20.000 1.000 195.200 365.000

/// /// /// 200.000 100.000 200.000 300.000 /// 750 128.000 71.250

/// /// /// 200.000 100.000 200.000 300.000 /// 500 128.000 71.500

2.000.000

1.000.000

1.000.000

24 25

http://booster-sites.be/fr/site_web/ http://booster-sites.be/fr/ecommerce/ 26 The costs for 20m2 panels, full back, radio ads, TV ads, brochures and production and region taxes come from the quotation of PTOCs Account Manager, Christoph Nolf

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6. Swot27
Strengths Opening of our store 6 Sundays a year Important employees number Our prices policy Our own brands All major international and local brands Easy accessibility and location of our store Size of the building Free huge parking Delivery service Purchases central Catchment area E-commerce The opening hours More completed services than our competitors 15.000 references Communication via PTOC Opportunities Subsidies Possibility to negotiate the companies tax Royalties, management fees, notional interest : money not taxed in Belgium Second store after the third year Decreasing of the taxable basis thanks to the DNA, interest rate Possibility to subcontract the delivery service if less costly Sportive culture well implemented in Belgium Weaknesses Huge purchases costs Important starting capital needed The prices for the purchasing and the construction of the building Important loss for the 1st year Important companies tax The costs for the HR department Paritary committee 311 : important employee protection Trade unions No awareness at the beginning Only one store Location of the purchases central : in England Time needed for the construction Huge size of the building (have to fill every m with products)

Threats Exchange rate Inflation and health rate The sickness rate in the sector The staff turnover Many important competitors The financial crisis Belgians non food sectors turnover is decreasing Time needed to have the construction permission The weather : negative impact on the construction Why this ex Carrefour store has closed his door

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Appendix n7
12

10. HR28
1. The paritary committee 311
Our future company/store COMEX L&S in Flanders will belong to the paritary committee (PC) 311. The PC 311 is part of the large companies of retail sale. This paritary committee groups the non-food companies which employ at least 50 persons and exploit less than 3 different commercial branches.

2. Labor law in Belgium29


According to our paritary committee (PC311), the working time is 35 hours a week. The workers can work 5 days a week. Concerning the work on Sunday, we will be opened 6 Sundays a year. In Belgium, the labor law forbids in principle that the employees work on Sunday, even if they agree. However, in the decree of the 27/11/2007, we are passed from 3 to 6 for the number of Sundays of opening during which the workers can, per calendar year, be occupied in the sector of the distribution. Furthermore, these Sundays can be chosen freely by the employer. On Sunday, the workers earn 200% of their normal wage.

3. Staff composition and salary cost


Front office 99 71 71 4.891.091

Workers in Full time Workers in Part time Students in Part time Total Costs (gross salary) : Costs for a normal gross wage Wages for Monday to Saturday Wages for Sundays (200%) th 13 month Holiday pay Workers in Full time Total cost(gross salary) : Costs for a normal gross salary Wages for Monday to Saturday th 13 month Holiday pay Total number of workers Total salary costs

Back office 18 1.116.491

259 6.007.582

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Appendix n8
http://www.emploi.belgique.be/defaultTab.aspx?id=388

29

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4. Organization chart

5. Other costs related to our staff


A. Costs of staff recruitment All costs for the staff recruitment is included in the marketing costs B. Salary package All the workers Luncheon vouchers (included in the salary) Discount card on products and services of the store (20% discount on our own brands and 10% discount on the other brands) The shelf managers and the salesmen and saleswomen will receive bonuses. These bonuses are a percentage on the sales, on the turnover of the shelves. They receive these bonuses only if the turnover of the shelf is higher than a certain turnover fixed by the store manager The MD and the 6 managers will receive besides their wages a car with the gasoline card, a mobile phone, a pension plan (included in the salary) and an hospitalization insurance

Front Office

Back Office

14

C. The staff turnover The staff turnover is high in our sector. Indeed, we employ young workers because the work is heavy and physical. The problem is that these young workers are people who change often of work and are even unstable. The total staff turnover = voluntary departures + involuntary departures According to Securex, The staff T.O. percentage in our CP is about 6,65% for the voluntary departure and 14,09% for the involuntary departure. Currently, it is not possible to calculate the cost of the staff T.O. we will have in our company, because there are a lot of aspects we have to include (direct and indirect costs) and we cannot forecast. For example the left function, the costs related to the lost of a good worker who could have contributed to the growth of the company. Moreover, we cannot be sure that the employee who will succeed him, would be so good and even better than him. Face to a fire, the colleagues could work less. The total staff T.O. costs include the following points: Administrative costs The costs related to the temporary replacement The costs related to the recruitment The possible loss of a customer who could follow the employee who has left the company. According to the function of the worker, his performance, the time to find someone else, the costs can reach 150% and even more of the annual wage of the worker. D. Absenteeism costs In 2009, the total percentage of absenteeism due to diseases = 5,58% In 2009, the total percentage of absenteeism due to accidents at work = 0,41% In term of costs, it costs for the company: 489 051,6 Calculation Gross wage x 8,6% = Y (direct costs) Y x 2,5 = Z (indirect costs) Z x 6 days x total head count for this gross wage = total Explanations 8,6% = direct cost for one day of absenteeism due to disease 2,5 = indirect costs are estimated at 2,5 times higher than the direct costs 6 = on average the number of days of absenteeism due to disease

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11. Means of production


1. Area and possibilities to extend our store
We will construct a second floor to the biggest store in Belgium. Our total area will be more or less 15.000 m.

Sales area: 4.357m * 2 = 8714 m Storage area: 3727 m Lunch garden 719m * 2 = 1438

= 13.879 m

According to the town of Ghent the waiting time for the building permit will be 4 months. For the constructions, we have approached the building company Willy Naessens. They have built over 4500 buildings so far. They propose two kinds of services: Structure, foundation, roof and pavement for 250 per m All the construction with heating and electricity 500 to 600 per m So the construction price of our sales will amount to 600 * 8803 = 5.298.000 for the second floor. The purchase price amounts to 5.500.000, but we negotiate with Redveco to have a discount on this price. They agree to do a discount of 7% on the cost price. So the store will cost us at the end 5.115.000. In conclusion for the construction and the purchase price of the store the amount is 10.413.000.

2. Arrangement and installation


We would like to buy a Carrefour which closed his doors. Indeed they will be a lot of arrangement work because of the shelves, the check-out, fitting rooms that we have to put in place. But the advantage of this store is that they have things that we keep for example the reception desk. For all the installation of the second floor and the arrangement we put an amount of more or less 1.500.000 First of all when you will enter the store you will see the special offers for the week or the month. We will also have a number of 10 checks out on the left and on the right we will have reception desk. We will have a shelf for all kind of sport. But maybe 2 for some sports which take place. Over each shelf you will find an indication to know which sport is concerned. There will be mirrors at the end of the shelf if it is necessary. On one side we will find the products which take a lot of place such as the bicycle, weight machines, tents and on the other side we will have the fitting room. We will have the after sales service

The entrance

In the middle

At the back

The exit

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Schedules: Opened from Monday to Saturday (6 days per week) Opened from 9.00 am to 8.30 pm (111/2 hours per day) Opened 6 Sundays a year

3. Equipment, furniture and vehicles30


We will depreciate the building over 30 years, the plant, machinery and equipment over 10 years and the furniture and vehicles over 5 years31. Vehicles The cost for the cars that we will give to our back office staff is included in the salary package. These cars will be bought through a financial leasing. We offer a BMW for the managing director and Golf 6 for the others32.The monthly rent with the insurance and the maintenance amounts to 850 for the 320d BMW and to 415 for the Golf 6. We will buy 2 VW Crafter Fourgon for our delivery service through a financial renting and not through a financial leasing because they will make a lot of km a year and it is more advantageous.

4. Suppliers
Most products will be purchased through the headquarters, located in UK. We have estimated our needs in goods for our sales and our stock: for the first year we will buy 8.923.913 ; for the second year 13.385.869 ; for the third year 18.740.216 . These needs are calculated in percentage of our turnover 60% (with a 40% benefits margin). This is based on the assumption that the cost of goods sold will reach around 60 % (leaving 40% gross profit margin). We found local brands with whom we can work. These local brands are Tolga33 (horse riding equipments), Scarecrow34 (wakeboard and surf), Marie Jo Intense35 (sport underwears), Purple Products36 (fishing products)... It could be a good idea to supply us by local brands to reduce the costs of transport.

30 31

Appendix n9 Appendix n10 32 Appendix n11 33 www.tolga.be 34 http://scarecrow.be 35 www.mariejo.com/home/intense/fr/default.aspx 36 www.purpleproducts.be


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12. Financial dossier


1. Investment budget
Investment budget Constitution fees 5.322 Business lawyer firm 5.000 Status publication fees 322,31 Tangible assets 14.500.000 Land and construction (building) 12.000.000 Plant, machinery and equipment 2.000.000 Furniture and vehicles 500.000 Stock 1.500.000 Liquid assets 3.000.000 Total 19.005.322

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2. P&L forecast
2011 14.278.260 14.278.260 17.263.134 7.423.913 2012 21.417.390 50% = 21.417.390 21.820.412 12.635.869 2013 29.984.346 40%= 29.984.346 27.177.226 17.840.216

Sales and Services Turnover Cost of sales and services Supply and goods Purchase Equipment Clothes Machines Accessories Energies food Stocks: decrease (increase) Various services and goods Phone, internet costs Cleaning costs Security Communication costs

70/74 70 60/64 60 600/8

8.923.91 3 69

13.385.8 16

18.740.2

609 61

Entertainment expenses Office supplies Business lawyer firm Remunerations, social 62 contributions and pensions Remunerations for NP + 10% Amortizations and value reductions on start-up costs, on intangible asset and tangible asset immobilization Other operating expenses Water, electricity Insurances* Operating profit (loss) Financial expenses Debt expenses Banking charges Other financial expenses Current profit (loss) before taxes 630 640/8

-1.500.000 2.248.832 10.000 120.000 293.832 1.800.00 0 15.000 5.000 5.000 6.496.633 6.075.817 700.000 393.756 50.000 285.800 57.956 -2.984.874

-750.000 1.450.002 10.000 120.000 300.002 1.000.00 0 15.000 5.000 6.633.062 6.500.689 700.000 401.479 51.150 292.373 57.956 -403.022

-900.000 1.456.303 10.000 120.000 306.303 1.000.00 0 15.000 5.000 6.772.357 6.623.853 700.000 408.350 52.173 298.221 57.956 2.807.120

9901 65 650 652/9 9902

797.563 -3.782.437

671.063 -1.074.085

544.563 2.262.557

19

DNA DNA : deduction Fuel (75%) Leasing (75%) Renting (100%) Event, sponsorship (50%) Entertainment expenses (100% if once a year) Beverages (100%) Exercise profit (loss) before taxes Royalties 3% Taxable basis Taxes 33,99% Exercise profit (loss) to affect NP + 10% 9903

425.726 277.069 137.800 (103.350) 56.830 (42.623) 16.256 (16.256) 200.000 (100.000) 11.340 (11.340) 3.500 (3.500) -4.208.163

249.646 195.009 161.720 (121.290) 56.830 (42.623) 16.256 (16.256)

285.526 221.919 197.600 (148.200) 56.830 (42.623) 16.256 (16.256)

11.340 (11.340) 3.500 (3.500) -1.323.731

11.340 (11.340) 3.500 (3.500) 2.548.083 76.443 2.249.722 764.680 1.485.041 1.633.546

670/3 9905

-4.208.163 -3.787.347

-1.323.731 -1.191.358

20

3. Balance sheet
Balance sheet at the 2011 beginning 22/27 14.500.000 22 12.000.000 13.800.000 11.600.000

Liabilities Equity Capital Reserve Deferred profit (loss) Debts Debts of more than one year Financial debts Banks Comex Ltd Debts of less than one year Financial debts Commercial debts Fiscal debts, remuneration and social debts Taxes Remuneration and social debts Accruals Total of the liabilities

Balance sheet at the beginning 17/100 10 5.000.000 13 14 17/49 17 170/4

2011

2012

2013

Assets Tangible assets Land and construction (building) Plant, machinery and equipment Furniture and Vehicles Stocks Claims of less than one year Commercial claims (b to b) Liquid assets Accruals Total of the assets

2012

2013

5.000.000 -4.208.163

5.000.000 -5.531.894

5.000.000 -4.046.853

13.100.000 12.400.000 11.200.000 10.800.000

23 24

2.000.000 500.000

1.800.000 400.000 1.500.000

1.600.000 300.000 2.250.000

1.400.000 200.000 3.150.000

12.500.000 10.850.000 9.200.000 8.500.000 4.000.000 7.650.000 3.200.000 6.800.000 2.400.000

7.550.000 5.950.000 1.600.000

30/36 1.500.000 40/41 40 54/58 3.000.000 490/1 20/58 19.000.000

42/48 43 44 45 450/3 454/9 492/3 49/100 19.000.000 13.782.837 11.720.552 12.679.714 215.000 426.000 367.500 434.946 582.487 444.080 1.500.000 1.500.000 2.250.000 3.150.000

480.000 -1.997.163 13.782.837

720.000 -4.349.448

1.008.000 -3.878.286

11.720.552 12.679.714

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4. Ratios
ratios Working capital Working capital needs ROE ROI Solvency Liquidity EBIT EBITA Cash flow 2011 -2.158.163 480.000 -26,55% -24,75% 84,47% -101,14% -4.208.163 -3.508.163 -4.208.163 2012 -4.431.894 720.000 -9,32% -5,57% 73,96% -161,31% -1.323.731 -623.731 -1.323.731 2013 -3.896.853 1.008.000 11,83% 22,04% 67,06% -91,12% 2.548.083 3.248.083 2.548.083

% / TO T.O. G.M. Remunerations Working capital Working capital needs EBIT EBITA N.P.

2011 14.278.260 -20,91% 45,50% -15,12% 3,36% -29,47% -24,57% -29,47%

2012 21.417.390 -1,88% 30,97% -20,69% 3,36% -6,18% -2,91% -6,18%

2013 29.984.346 9,36% 22,59% -13,00% 3,36% 8,50% 10,83% 4,95%

T.O.

2011 In 14.278.260 Out 8.923.913 2.248.832 6.496.633 393.756 425.726 18.488.860 Total -4.210.600

Cash 2012 21.417.390

2013 29.984.346

Supply and goods Various services and goods Remunerations Other operating expenses DNA Total OUT

13.385.869 1.450.002 6.633.062 401.479 249.646 22.120.058

18.740.216 1.456.303 6.772.357 408.350 285.526 27.662.752

-702.668

2.321.594

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5. Financial help
A. Capital grants from the Flemish government 37 There is a possibility to receive a capital grants from the Flemish government because it encourages the investment in their region. However, there are some conditions and a competition system to get it. The maximum amount we can receive in our case is up to 14% of the project. B. Flanders Investment & Trade(FIT) 38 It is a Flemish agency which gives free advices on all aspects of the investment in their region (choice of the site, the integration in the local community life, legal aspects related to the creation of a local company ). It will allows us to avoid some extra spends for some information we need.

13. Exchange rate, VAT, insurances


1. Exchange rate39
We need to cover us for two situations: A. Goods importation We have chosen a CALL option. It is the right to purchase a currency on a specified date in the future (expiration date) at a predetermined price (strike price). The date and strike price are determined when the option is concluded. In order to acquire this right, the buyer of the option must pay an up-front premium. expiration date = the date on which the option expires delivery date = option expiration date + two business days or actual value date strike price = exercise price With this way we can choose to purchase GBP at the strike price or the current spot rate. We are totally covered from the exchange risk but we have to pay an up-front premium to the bank. Terms and conditions Duration: Minimum of three days, maximum of two years Minimum nominal amount: 10.000 Up-front premium payable depends on factors such as the strike price, spot rate, volatility and duration B. Compensation/remuneration to the headquarter s This compensation is paid at the end of the year in percentage of the turnover. We need to avoid cost and we have to choose a secured option. We are more free than for the payment of goods. Indeed we have one year to take an exchange rate. That is the reason why we can opt for a currency forward contract. It is a purchase agreement for a pair of currencies, with a predetermined exchange rate but with delivery and payment at a later date stipulated in the agreement. The forward rate is influenced by the spot rate and the interest-rate spread for the two currencies exchanged. The premium (= report) represents the interest-rate spread added to the spot rate, the discount (=deport) represents the interest-rate spread deducted from the spot rate.
37 38

www.investinflanders.com/fr/doing_buiseness/incentives/investment_incentives/ www.investflanders.com/en/home/ 39 http://www.ing.be/business/showdoc.jsp?docid=025664_FR&menopt=sme%7Cbha%7Cris%7Cere&lang=fr

23

Forward rate = Spot rate + premium ( or report= negative interest-rate spread between the main currency (generally EUR) and the currency traded) Spot rate - discount (or deport =positive interest-rate spread between the main currency (generally EUR) and the currency traded) Terms and conditions Duration: Minimum of three days, maximum of one year Minimum amount: 2.500 Charges: 1 / (payable up front) Minimum: 12,50 , Maximum: 75

2. VAT40
The company, as a Belgian company, will be registered to the VAT after the obtainment of the company number. The invoices from the headquarters dont have to mention the VAT. According to our business, the VAT rates are of 12% for our real estate works and 21% for all goods and services. The Vat is deductible for trader liable the VAT. We, liable for tax, have to note the operation and the tax in our declaration to the VAT. The declaration of the month has to be completed and submitted to the 20th of next month.

3. Insurances
We have opted for the following insurance policies: Industrial injuries : 1% of total gross wage RC objective Fire insurance: 0,75 of the container and the content RC after delivery + RC operating: 0,01% of the TO Transfer and value insurance TOTAL 33,835 1,000 14,193 1,428 7,500 57,956

14. Conclusion
The 2nd Comex L&S Mega store in Belgium
We project to open a 2nd store in Belgium by 2014. As we have only one store in Flanders (Zwijnaarde), we will open another one in Wallonia to cover all the country. However, the opening of the 2nd Comex L&S will depend on the situation we will have and the projects of our Group. If we reach our sales target, a second store will open his door in Namur. Indeed, it is the capital of Wallonia and Anne Barzin, the city counselor for trade in Namur claims that, there is a lack of leisure and sport stores in this city.41

40 41

Appendix n12 http://www.canalc.be/index.php?option=com_content&task=view&id=6723&Itemid=356

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15. Sources
1. Webography
http://www.ducroire.be, visited during the months of November and December http://statbel.fgov.be, visited during the months of November and December http://www.lalibre.be, visited during the months of November and December http://www.plan.be, visited during the months of November and December http://www.rtbf.be, visited during the months of November and December http://booster-sites.be, visited during the month of November http://www.emploi.belgique.be, visited during the months of November and December http://www.tolga.be, visited the 22th December http://scarecrow.be, visited the 22th December http://www.mariejo.com, visited the 22th December http://www.purpleproducts.be, visited the 22th December http://www.investflanders.com, visited the months of November and December http://www.ing.be, visited the months of November and December http://www.canalc.be, visited the month of November

2. Bibliography
GODART (N.), LATIN (J.), VANVELTHEM (M.), VERMAST (M.), Notions de lgislation sociale et fiscale, ed. 2009-2010 Trends 2011 Financial analysis course at EPHEC third year

3. Interviews
Employee of the Ghent authorithy, interviewed in December NOLF Christophe by PTOC, interviewed in November NELIS Charle- Emmanuel and MINNE Jean by Decathlon, interviewed in December FRESON Valrie, Valrie Cleaning, interviewed in December Employee of G4S, interviewed in December KONOZIS Silva by Dexia, interviewed in November Employee of Liedekerke,business lawyer firm, interviewed in December Employee of Redevco, interviewed in November LOOTENS Jean by BNP Paribas Fortis, interviewed in November

16. Appendix

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