Four Smoke Shops 60 Miles Apart in Mississippi Close to New Orleans

Description

Four smoke shops for sale along the Mississippi Gulf Coast, all located within approximately a 60-mile radius. The stores have operated under current ownership since 2013 and are currently managed without day-to-day involvement from the owners.

Financial profile

• 2023 combined sales: approximately $2,400,000
• 2023 EBITDA: approximately $144,000
• Annual salaries and wages: approximately $330,000
• Inventory: approximately $300,000, sold separately at cost

The seller estimates that SDE could exceed $300,000 if a new owner or family replaces roughly half of the current paid labor. This assumes approximately $165,000 in payroll savings and should be treated as a buyer-specific projection rather than current historical earnings.

Portfolio

All four locations are positioned along the Mississippi Gulf Coast. The westernmost store is approximately 18 miles from the Louisiana border, allowing the portfolio to serve several communities across the coastal market.

Products

• Cigarettes
• Beer and hard seltzers
• Loose tobacco and tubes
• Rolling papers and cigarillos
• Vape devices, coils and e-liquids
• Disposable vape products
• THC-A and Delta products
• Hookahs and hookah tobacco
• Incense and candles
• Glass and tobacco pipes
• Water pipes and related accessories

Operations

The current owners do not participate in daily store operations. Existing payroll supports the four-location structure, allowing a buyer to retain the current management model or become more involved directly.

Buyers should review staffing by location to determine which payroll expenses could realistically be replaced by owner labor without affecting store hours or service levels.

Seller financing

Seller financing may be considered for a qualified buyer and acceptable offer. Down payment, interest rate, amortization, security and any balloon provisions would need to be negotiated.

Growth

• Increase owner involvement to reduce payroll expense
• Improve purchasing across all four stores
• Review product mix and margins by location
• Increase cross-store promotions and loyalty programs
• Expand permitted high-margin product categories

Due diligence

Buyers should review financial results for each store separately, including sales, gross margin, payroll, occupancy costs and EBITDA. Inventory counts, vendor terms, employee compensation, lease obligations, POS records and customer concentration should also be confirmed before closing.

Particular attention should be given to alcohol, tobacco, vapor-product and age-verification requirements. THC-A, Delta and other hemp-derived products should be reviewed separately for current Mississippi and federal legality, testing, labeling and sales restrictions, as these rules may change and should not be assumed to remain the same after closing.