S\& H FOOTWEAR Hussein graduated from McGill Univeryity in 2006 with a degree in besiness. He has always had an interest in footwear, working part-time in tigh school at his parents" shoe store in Midland, Ontario. After graduation, he got a job with a large Montreal-based retailer. In 2009, Huswein met Sally at a shoe exposition in Las Vegas, which he attends every rear to see the introducticn of new styles from around the world. Sally graduated from George Brown College in Toronto in 2007 , and has been working in Toronto for a fastion show retaller wich rine stores in Toronto, managing the Yorkdale store, the fagship of the chain. Sally and Hussein share a passion for footwear, especially tashionable footwear- After their first meetine Sally and Hassein kept in touch, and often met ar various footwear shows of when Sally was an buring trips to Montreal. The last time they met was in Milan, the shoe fashion Mecca of the world, and shared their plans for the future. It turned out that they were beeh tired of working in a large city and would lke to move to a smaller town in Ontario. However, there were very tew jobs availatle, and those that came up oflered poor salaries compared to their Montreal and Toronto wages. Although neither saw themselves as entrepreneurs, they had what every entrepreneur nceds; industry expenience or what venture capitalats cal "domain" experience. As well, both had managed to swe some money since graduation. They also had another entrepreneurial trait. passion, in this tase for everything to do with shoes. They discovered they had both been to the 8ata Shoe Museum in Toronto several tirses, and they both loved Italan shoes. After many late night discussions, Sally and Hussein decided to team up and either start a shoe store or buy an evisting one. Sally and Mussein incorpocated a company called H \& 5 footwear inc, and asued therselves 100 shares each. They each put $25 , 000 into the company, and arranged for a tentative bank loan of $0 , 000 from a majoe bank. They began leoking at mid-size towns in Ontario. Their criteris alse included a cosmepolaan culture and bie-town amenties. They drew up a list which includes tondon, Guelph, kiresten, and Windser, all university towns with many ameritiet, relatively robust markets, and growing populations since Sally and Hursein are both avid kayakers and Kingstan had the most appeal for water sperti, they bepan to look arcund Kingston for a site for their shoe store or for a shoe store to buy. They found a thoe store for sale on Princess Street in downtown Kingston. The cwner wished to retire and had porchased a condominium in florida. Neither his von nor his daughter was interested in taling over the atere, so he decided to well his business as an ongoing concern. He started the store in 1985 and built is up to $500 , 000 in revenue ( 2011 ) , wat one full time and two parttime employees. The prenises are rented on a tive-year renewable lease with two and a half years to.

1. S& H FOOTWEAR Hussein graduated from McGill Univeryity in 2006 with a degree in
besiness. He has always had an interest in footwear, working part-time in tigh school at his
parents" shoe store in Midland, Ontario. After graduation, he got a job with a large Montreal-
based retailer. In 2009, Huswein met Sally at a shoe exposition in Las Vegas, which he attends
every rear to see the introducticn of new styles from around the world. Sally graduated from
George Brown College in Toronto in 2007 , and has been working in Toronto for a fastion show
retaller wich rine stores in Toronto, managing the Yorkdale store, the fagship of the chain. Sally
and Hussein share a passion for footwear, especially tashionable footwear- After their first
meetine Sally and Hassein kept in touch, and often met ar various footwear shows of when Sally
was an buring trips to Montreal. The last time they met was in Milan, the shoe fashion Mecca of
the world, and shared their plans for the future. It turned out that they were beeh tired of working
in a large city and would lke to move to a smaller town in Ontario. However, there were very tew
jobs availatle, and those that came up oflered poor salaries compared to their Montreal and
Toronto wages. Although neither saw themselves as entrepreneurs, they had what every
entrepreneur nceds; industry expenience or what venture capitalats cal "domain" experience. As
well, both had managed to swe some money since graduation. They also had another
entrepreneurial trait. passion, in this tase for everything to do with shoes. They discovered they
had both been to the 8ata Shoe Museum in Toronto several tirses, and they both loved Italan
shoes. After many late night discussions, Sally and Hussein decided to team up and either start a
shoe store or buy an evisting one. Sally and Mussein incorpocated a company called H & 5
footwear inc, and asued therselves 100 shares each. They each put $25 , 000 into the company,
and arranged for a tentative bank loan of $0 , 000 from a majoe bank. They began leoking at
mid-size towns in Ontario. Their criteris alse included a cosmepolaan culture and bie-town
amenties. They drew up a list which includes tondon, Guelph, kiresten, and Windser, all
university towns with many ameritiet, relatively robust markets, and growing populations since
Sally and Hursein are both avid kayakers and Kingstan had the most appeal for water sperti, they
bepan to look arcund Kingston for a site for their shoe store or for a shoe store to buy. They
found a thoe store for sale on Princess Street in downtown Kingston. The cwner wished to retire
and had porchased a condominium in florida. Neither his von nor his daughter was interested in
taling over the atere, so he decided to well his business as an ongoing concern. He started the
store in 1985 and built is up to $500 , 000 in revenue ( 2011 ) , wat one full time and two
parttime employees. The prenises are rented on a tive-year renewable lease with two and a half
years to go on the curtent lease. The store is 3000 square feet with a basement for storage, and
caters to men and women with lines such as Ecco, Rockport, Adidas, Clarke, Geox, Hush
Puppies, Couga, and Sore. Hussein and saly were interested and began to carry out their due
dligence to evaluate the opportunity and artive at a value for the buiness and its future prospects.
The owner provided them with a copy of the lease and informed them that the building owner
would let them take over the current lease. In addition, ther received 2011 income statements and
the 2011 balance sheet (Eahibit 1 and 2). Sally and Hussein decided to split up the due dilgence.
Sally would look at the market, present and future, in Kingston, and Hussein would evaluate the
financial statements and come up with a potentil offer for the businesa. They would both
evaluate the product line, the fatures, and the look of the shop, not ocly to determine the
inseitment necesiary for iprucing up the shop, but also to eraluate the cuerent product offering
and the value frovided for the consumes. 3. Review the websites of the top 7 competitors. Do a
strengths and weaknesses analysis of each competitor. Draw conclusions. 4. Develop a
perception map of the retail space for footwear in Kingston based on the website analysis. 5.

2. Based on your analysis, come to some conclusions about the competitive environment in
Kingston facing S + H Footwear's venture.