Combining this customer behavior data with experience and intuition, retail store owners can develop great merchandising strategies by keeping 3 product mapping points in mind: Increased transaction totals are a natural by-product. As you walk to the back of the store to get milk, you funnel past coffee, cereal, and toilet paper. And the milk is right by the eggs and cheese.
Retail is a high volume industry conducted largely by small businesses. Total retail sales in the U. Succeeding with a small retail business requires a thorough understanding of the market niche you intend to serve.
Creating a business plan helps a small business owner become more customer focused in all aspects of his business. Market Need The starting point for a retail business plan is identifying market needs that the retailer can fill through the products and services he provides.
For the business to succeed, the need must be urgent enough that target customers will be willing to visit the store and make a purchase. The target market must also be large enough to support the store and generate sufficient sales that the retail business will be profitable.
Products and Distribution Describe what product lines will be your major revenue sources and why these were chosen. Explain your unique selling proposition -- what you intend to offer that is new, different and better than what the retailers you compete with are offering.
Clarify what makes the concept of your store stand out. For example, a pet store could offer exotic tropical fish that are hard to find. Discuss your distribution channels -- how you will get your products in front of customers.
Choices include store retailing, mail order business, Internet retailing and vending machines. Target Markets Describe your target customers so vividly that the reader of your plan can see them as individuals.
Avoid demographic generalizations such as you intend to market to 21 to 35 year olds. Be specific about what motivates your targeted groups to purchase from you.
They could be seeking convenience, product variety, low prices and information from knowledgeable sales personnel. Competitive Analysis You have already identified that a market need exists that is not being met by current competitors.
This is the gap you intend to fill with your retail business. Now discuss each major competitor in detail -- their strengths and weaknesses, the target customers they cater to and the marketing strategies they use.
Marketing Strategies Describe the actions you will take to acquire new retail customers -- your marketing strategies. Discuss why each strategy will have a positive effect on revenue generation.
Use your unique selling proposition as the basis for the marketing message you will deliver to target customers. Describe the merchandising strategy for your store; for example, how you will arrange the merchandise to showcase high profit margin items and provide easy access to impulse purchases.
Personnel Plan Forecast your staffing requirements by day of week and time of day. Project any seasonal variations as well. Describe how you intend to train your employees so they will consistently deliver superior customer service -- a key success factor for any retail business.
Financial Forecast Prepare a month-by-month forecast of revenues and expenses.
Build a revenue model that reflects the sales process with measurable variables you can track over time. For example, a retail bakery could forecast how many customers will visit during the morning hours versus the afternoon hours, which products they purchase -- doughnuts and rolls in the morning and cakes and cookies in the afternoon -- and the average dollar purchase.
Make sure you include all categories of expenses, no matter how small, in your forecast.
Smaller items such as postage or cleaning supplies can add up to a significant dollar amount over the course of the year.Whatever type of retail store you're starting, a good business plan is essential.
Get ideas from this assortment of sample business plans for clothing stores, online stores, e-businesses, gift shops, eBay, art galleries, and other retail businesses. Sample Retail Store Business Plan Template – Executive Summary People’s Choice Retail Shop is a retail shop that will be located in one of the busiest streets in Columbus, Ohio.
We have been able to lease a facility that is big enough to fit into the design of the retail shop that we intend launching and the facility is located in a corner. Retail is a high volume industry conducted largely by small businesses.
Total retail sales in the U.S. in were nearly $4 trillion but more than 95 percent of retailers are one store. Retail is a high volume industry conducted largely by small businesses. Total retail sales in the U.S. in were nearly $4 trillion but more than 95 percent of retailers are one store.
A sound business plan can help any budding entrepreneur lay the groundwork for a successful store. Mahogany Western Wear clothing retail business plan executive summary. Mahogany Western Wear is a western apparel retail store catering to African-Americans/5().