Starting a Grocery Store Business
This article briefly discusses the grocery store business. Find out some of the things you need to know in order to start your own grocery store business.
The grocery store concept, which is a descendant of the turn of the century general store, belongs to the retail industry.
The retail industry is one of the fastest-growing industries today and is considered a vital part of our economy. The chief purpose of this industry is to provide goods and merchandise to consumers. They get their products straight from the manufacturer or via a wholesaler or distributor. Ultimately, these products are sold to customers for consumption.
These goods are vast and varied. Retailers may sell anything and everything from food to apparel to electronics and so on. A grocery store for the most part offers food (both fresh and dry) and other household essentials.
Starting a grocery store business may pose a challenge if you are not equipped with the proper information. The business has several aspects that you need to focus on and study if you want your efforts to yield results.
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Begin with yourself. You don’t need to have prior retailing experience. All you need is the right attitude and the ‘customer-first mindset. An effective grocery store owner knows how to multitask. He is able to make swift yet calculated decisions. He is hardworking and is not afraid to work long hours.
Planning is essential as you begin to stock up your store. This keeps you from buying items that at first may seem like a good idea until you notice that they’re just gathering dust on the shelves. Unless you have the experience to back you up, there is no way you can be 100% correct in your inventory forecasting that is why you need to plan and at the very least conduct market research.
With adequate planning and research, you will be able to determine what you need to buy and how much. If need be, conduct a survey. You can also ask the manufacturers themselves for their most popular product. Be keen though for they may not always give you a straight answer.
Exercise diligence in scouting for the best possible resource for your products. See to it that you get the lowest deal thereby allowing you to give the best markup price.
Enticing your shoppers with the products you have on hand is difficult if you have limited space. Therefore, you need to be crafty. Make sure that impulse items (magazines, sweets, etc) and high-priced items are allocated in an area within your store where there is heavy customer traffic.
See to it that your fast-moving products (milk, bread, etc) are displayed near the back of the store space. The idea here is, your shoppers will have to pass through several aisles of products they may not have considered buying had they not seen them.
A final note. In light of the number of grocery stores and supermarkets out there, is there room for more? Most definitely! The key is to create your own market niche. To do this, you need to have a unique selling point. You may want to sell hard-to-find premium products that most supermarkets don’t have in stock. Use your creativity. Think of a distinct concept that is entirely yours. Or you can improve on what’s already out there. The key is to offer something that customers cannot get anywhere else.
Watch this Video for Doing Research Work to Start Your Own Grocery Store
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1. What kind of grocery store? (Indian, Chinese, mexican grocery store)
2. Where do you want to start it?
3. Will it be a franchised one or your brand?
4. Do you won a place where you want to start this grocery store?
5. Will you hire or run yourself?
Things you need to do before opening a grocery store:
- Know how much money you have and need to open a store. (I found a small place for rent with $300/month, deposit for three months: $900; I need a cash register:$150-$200; a small refrigerator: $800-$1000; shelves: $100up; and a license for $200up, so total for start-up cost is: $2500-$3000, and I didn't calculate the money you need for buying products for sale, it's up to you for how many and how much you want to sell)
- If you find a place, negotiate with the owner and get the deal done. Ask them to give you a week or two free to clean and prepare the area before moving in.
- To apply for your license in your state. Call the Health department and Fire department to inspect the store.
- Set up the store, buy products at wholesale prices (you have to search for wholesale dealers in your area and negotiate the prices), stock up your products and prepare for grand opening day.
- Last, remember to always...smile at your customers. I wish everyone the best in opening their stores. By the way, my total cost for opening my small grocery store was about $6000.
Please email me if you have the details, which might help me.
anvear@yahoo.com
Thanks
for the past five years, I have been seriously thinking about opening my own grocery store (save-a-lot style). could anyone tell me how much start-up money I would need to borrow from the bank? Thanks, guys; I love you all
I am also exploring an Indian grocery store. Did you find any info? Where are you planning to start? I am in Fremont, CA. If you are also in CA we can put our heads together. What do you say?
If interested, write to me at krismanian@netscape.net.
thanks Kris
Joni if you are still out there with information. I'm at clandig@earthlink.net
Demand is the fuel that drives any business. So before starting an organic store, look around whether people in the area where you plan to open a business are inclined to buy products that are healthy and free of pesticides and antibiotics. Also consider your competition like health food stores, and farmers’ markets. Make sure you are not one too many. As a specialty store you could sell a variety of items like organic fruits, meat, grains, vegetables and dairy products free of synthetic ingredients. Or you can specialize in one product. To prove the authenticity of your claim that your products are organic, adhere to labelling standards by the U.S. Department of Agriculture. Just like any business, you would have to secure permits, licenses and tax numbers for your business, as well as choose a business structure. Visit your city office to know which proper agency to submit the requirements.
Do you have some tips for someone planning to open a grocery store?
Display is a big factor in a grocery store. Put consumer goods at the farthest end – people will not mind going the distance for something they need. Put those that they need least along the way and nearest to your counters for last-minute reminders to shoppers. A grocery store is heavily dependent on refrigeration, put in place measures to improve your refrigeration system’s efficiency.
Where do I find contractors to buy refrigerators for my grocery store?
At Medibix.com you would find global suppliers of commercial refrigerators, refrigerated display cases, freezers, undercounter refrigerators, reach-in refrigerators, walk-in coolers. As you would need a lot of refrigeration for you perishable goods, buy energy-saving refrigerators so that you don’t get hit with a large bill every month.
Towing Business Adviser
I'm hoping this person can guide me through the morass of distributors, unions, and state and local inspectors. Wish me luck!
Jestin James
Startup Biz Hub - Senior Advisor (Staff)
Anybody thinking they'll get rich (or even make a living!) owning a grocery store is a pure fool. And anyone who tells you otherwise is a consultant, sales rep, or a well wishing (yet anonymous) internet voice.