Grocery store business plan
Reviews for the supermarket business plan ()
The main thing about the supermarket business plan for the year
Supermarket organization: own production
Own production for any grocery supermarket is not only an opportunity for additional income. First of all, the expansion of the assortment in the store helps to attract new customers. The presence of a culinary department in a supermarket has long become its integral part, and is usually considered as an attribute that allows you to achieve maximum efficiency in the activities of a retail outlet.
The main assortment of the supermarket's own products is salads, fresh pastries, semi-finished products for easy preparation, as well as ready-made main courses. The demand for such products remains at a consistently high level, and its main consumers are both bachelors who do not know how and do not like to cook, and busy people who are constantly experiencing a shortage of free time.
The scale of our own production, the choice of the range of products - all this is determined individually, depending on the resources and capacities available to the entrepreneur, as well as on the ultimate goal of this project.
Super Idea for a Supermarket
Setting up your own production in a supermarket is one of the most effective competitive methods. According to experts, the correct organization of the work of the culinary and culinary department in a supermarket can provide at least 15-20% of turnover. At the same time, the profitability of own production with successful business management reaches 70%. So, when they say that opening supermarkets is a profitable business, many businessmen mean a combination of trade and their own production.
Before opening a culinary department in a supermarket, it is advisable to study the assortment of salads and other dishes in neighboring stores, for example, if the choice there is rather monotonous, you need to draw conclusions from this and offer the customer something new. To attract visitors to the supermarket, it is beneficial from time to time to arrange marketing campaigns - tasting of products of our own production, discounts at certain times of the day, etc.
If you are planning to open a minimarket, this does not mean that there is no place for your own production. It's just that the volume of products produced in it should be smaller, and the range and prices should be more democratic. It can be only salads or fresh baked goods, it all depends on the needs of your potential buyer and the demand for certain types of products.
A professional supermarket business plan will help you choose the right direction in such a format as your own production. After studying it, you will learn how to determine the number of employees by opening, for example, a supermarket on an area of 300 square meters. ... You can read tips for opening a supermarket in many articles, but the recommendations of experienced professionals will be available to you only in this most important financial document that any businessman needs.
Opening of a supermarket of household goods
If you come up with an idea to open your own supermarket, do not seek to translate it into “all goods under one roof” format. A different trend has emerged in the trade market: a gradual decline in interest in multi-format stores, and an increase in demand for highly specialized supermarkets. According to experts, the future belongs to such a trading format, and this niche is already beginning to fill up gradually.
One such idea is a grocery store. This is a topical destination that is not seasonal. Therefore, it will bring a constant and sufficiently high level of profit in the case of an adequate approach to the organization.
Project description: focus on the format of the establishment
It is important to understand that in order to start this kind of business, it is necessary to choose the format of the store. Unfortunately, there is still no clear classification, and different studies highlight a different number and list of formats that are used by such institutions:
- So, one of the most common types is the classic supermarket, which mainly sells food products. Its area must be at least 400 sq. m. This kind of institution will earn on volumes and on a fairly wide range. A retail outlet of a larger format (for example, a hypermarket) will not be managed effectively by an entrepreneur with no experience.
- The store next door is one of the most common in dormitory areas. Its area is less than 400 sq. m., and it is characterized by walking distance for residents of the area. For this they pay an inflated price for most of the goods. In addition, the range of products is small, but this is not a reason to refuse to monitor its quality.
- A grocery store is a small retail outlet selling only a certain type of product. The downside is that marketing support is necessary for such an enterprise, since it will be difficult for it to compete in an already established market. The most preferred option is the trade in meat or cheese. A confectionery or grocery store can be considered a separate type - however, this kind of format is not yet too developed in our country and those players who are trusted by customers are large enough and capable of hindering a successful entry into the market.
- Combined grocery and pharmacy stores have appeared more and more recently. So, here two options are possible - either the entrepreneur rents the area for the store, and gives part of it to the pharmacy in sublease, or drugs are sold directly in the institution. The second option is less preferable because it can undermine consumer confidence.
- Finally, one of the most budgetary versions is a kiosk format specializing in the sale of water, snacks, ice cream, sweets. Also, to increase revenue, it is possible to sell various types of correspondence.
Market and Competitive Analysis
In order to launch your own store, it is important to understand that there is a fairly large number of players in this market. Whichever format is chosen, the following companies will surely be among potential competitors:
- Hypermarkets. They are characterized by a huge assortment at fairly low prices and will take most of the revenue, which grows on weekends and before the holidays, since most people (especially families with cars) find it convenient to buy groceries at a time, as well as many other related products for the whole week in advance.
- Chain supermarkets. A separate category of stores, each of which focuses on its own approach to pricing, quality and remaining shelf life of products. They have their customers who trust them and are loyal. Due to the scale of this kind of network, they can also offer cheaper or, on the contrary, elite products.
- Convenience stores. They will compete primarily because of the convenience of the location. At the same time, it is their customers who are not too loyal to the institution and therefore can easily change the place where they shop.
- Cafes and restaurants. An indirect competitor from the point of view that many people, instead of buying food and preparing dinner on their own, will prefer going to a cafe, restaurant, canteen, etc. The plus is that people who eat every day in such establishments, Hardly ever. Accordingly, they will still make purchases.
- Specialized points. If you want to open a grocery store with a fairly large assortment without specialization, these outlets will benefit due to the availability of rarer products (the outflow of customers will most of all be observed during the holidays, weekends, vacations and vacations).
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Selecting the location and size of the point
It is advisable to first define the type of location - it can be a central area (for luxury outlets, since the entrepreneur will have high rental rates), a detached store. An establishment in a residential building in a residential area or a retail outlet located in a shopping center is also permissible (this is often the most difficult to achieve, since initially the retail space in such places is given to chain establishments that guarantee high profitability and the ability to pay a rate).
Reviews for the grocery store business plan ()
The main thing about the business plan of the grocery store in the year
Opening a grocery store: pitfalls
How does a grocery store start? Of course, from the search for a suitable premises or even from its construction - everything depends on the financial capabilities of the entrepreneur and his plans. The most common options are renting non-residential premises on the first floor of a building, or constructing a non-capital building. The average store area is about 150-200 square meters. m.
Each of these options has pitfalls. Having decided to open his own grocery store in a new building, having started its construction from scratch, the businessman risks facing a misunderstanding of the city authorities. Before starting construction, you should obtain the appropriate permission from the administration, and this is quite troublesome. Opening your own grocery store in a rented space is a little easier, the main thing is to find an acceptable option. But here, too, there are certain problems.
When opening a grocery store, pay attention to the lease term and the possibility of its extension. If the contract is drawn up for just a year, and there is no clause on the extension of the term, then the entrepreneur runs the risk of being completely left without premises. You can minimize such risks by organizing a grocery store in your own building, or concluding a long-term lease agreement with the landlord.
Big problems for a small store
When planning to open a grocery kiosk, pavilion or retail food store, every businessman is faced with the need to recruit staff. And at this moment there is a risk of encountering not just pitfalls, but real icebergs, because finding honest and conscientious sellers in our time is becoming increasingly difficult.
As practice shows, it is in grocery stores that theft thrives most of all. The higher the budget of the grocery pavilion, the greater the shortfalls can be. Theft of products by visitors is a minimum percentage of these amounts. Unclean people willingly go into trade, hoping to profit, cheating buyers and deceiving the owner. By hiring sellers in the store with recommendations, or by contacting a recruiting agency, you will minimize the risk, but even this option will not allow you to protect yourself from negligent workers with a 100% guarantee.
Regardless of whether you decide to open a dairy kiosk, a stall of dairy products or build a business on fish and fish products, you have to face dozens of problems every day: expired goods, revisions, shortages, customer complaints, visits by sanitary inspectors. Start your grocery store business and organization by examining a professional example of a grocery store business plan from scratch with ready-made calculations, and this will allow you to avoid any pitfalls that inevitably lie in wait for you along the way. This document contains a description of the activities of various departments of a grocery store, as well as describes the features of opening a mini-grocery store. You will learn how to run your business, how to open your grocery store, while minimizing costs.
Starting a grocery store: home delivery
You can enter the retail food market in different ways: open your own store or buy a franchise from one of the major chains. The amount of initial investment depends on which path you have chosen. Opening a franchise of its own regional chain of stores will cost from $ 250-700 thousand to $ 3-5 million, which will pay off in a year or three. Opening a small shop near the house will cost much less, the minimum limit is 50 thousand dollars. The profitability is at the level of 23-25%.
Classification of supermarket formats
According to the Italian supermarket classification system, the first and largest format is the so-called superstores. These are giant stores with an area of over 20,000 square meters. m, in which the food group occupies at least 50%.
The next format is hypermarkets such as Auchan. They are usually located outside the city and occupy an area of at least 4,000-10,000 square meters. m. More; 70% of the volume of products in them are food products, which make the main turnover; 30% - related.
The third format is a supermarket, i.e. a city store located on a busy highway, in a densely populated area, at the intersection of the main passenger traffic, near the metro. The more profitable the location, the better it works. Area - 500-2021 sq. m.
The next step is what we call a deli. Establishments of this type are called "convenience store", "corner store". These are small shops with an area of up to 500 sq. m. The main assortment is made up of food products, a significant part of which is perishable and products of daily demand.
The fifth format is discounter. This word is often interpreted as a cheap store.
And the last option. Little popular with us and common in the West. These are small, highly specialized shops selling, for example, herbs or meat, and occupying an area of no more than 60-80 square meters. m.
Statistics show that if it takes more than 10 minutes to get to the supermarket, many will prefer to make a purchase near their home. Therefore, opening a "corner store" promises a good profit. If, of course, you choose the right premises and correctly build all business processes.
But finding a suitable room in Moscow is not so easy. Entrepreneurs prefer to buy existing stores. The cost of a store is determined by its location. For example, a grocery store in the Pokrovka area, located on its own premises, costs about $ 900,000, while a similar one in Mitino, which leases a building, costs only $ 90,000. The average cost of a store is about 230 thousand dollars. / P>
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Starting a grocery store is the first idea that comes to mind for aspiring entrepreneurs. The project is not only the most common among businesses, but also quite profitable. It should be understood that the outlet provides for considerable investments and thoughtful actions until the moment the idea is implemented. A grocery store business plan will not only reduce the possible risks of bankruptcy, but also pay back the investment in a short time.
Business description and relevance
A grocery store as a business needs almost no introduction or description. The meaning of the activity is the sale of food products through the retail network. Attentive people will notice that the market is full of similar outlets, but this is far from the case. There is always a place to open a new store with the prospect of high profits and quick payback.
The relevance of the grocery store has always remained at a high level. Despite the fact that new supermarkets are being built everywhere, the demand for pavilions in the courtyards of residential areas is not decreasing. This is due to the following factors:
- Accessibility - the buyer does not need to go or go to a large retail chain for essential products if they can be purchased a few meters from the entrance of an apartment building.
- Savings - this can include both time and cost savings. In the first case, the factor is related to the availability and lack of queues. For the purchase of bread, milk, muffins, a person spends 10-15 minutes, including movement. You can also save your own money in a small shop, because there is no temptation to buy unnecessary goods that follow the buyer at every step in the supermarket. Many people deliberately do not visit chain stores unless they plan to buy a large list of products.
- Comfort - almost all small pavilions are equipped with cashless payment terminals, so in this regard, points are as convenient as hypermarkets. And since the grocery store is located next to the house, buyers know all the sellers by sight, which simplifies the settlement system (lack of trifles, etc.).
It should be understood that the relevance of a grocery store largely depends on the location. Certain areas of cities are indeed overcrowded with food stalls, which hinders their profitability and profitability.
On the eve of starting a business, you should decide on the format of the store, as well as analyze the market and competitors. Often, after receiving basic statistical data, an entrepreneur changes his mind about both the proposed area and the concept of trade.
Choosing a grocery store format
The supermarket's business plan differs significantly from the same simple pavilion in the countryside. This is due to completely different business formats, different costs and ways of achieving the goal. That is why you initially need to study the difference between all possible types of stores, determine their positive and negative sides, as well as the relevance for the chosen place.
Grocery store formats:
- Hypermarket - area up to 5,000 sq. m. This is the largest type of business in the grocery segment. The assortment includes not only food products, but also many names of household chemicals, clothes, electronics, etc. The location is mainly outside the city, since it is problematic to find a suitable area for a building and parking for buyers within the boundaries of a settlement.
- Supermarket - area up to 2,000 sq. m. The most common type of food store, located in shopping centers or standing apart in places with high traffic of people.
- Grocery store - area up to 500 sq. m. The outlets are focused on the sale of everyday food products and a standard range of household chemicals.
- A mini-market is one of the varieties of a self-service store with 1–2 two cash desks.
- Narrow shops specializing in one type of product - meat, dairy or bakery products.
- Convenience store is the simplest and most common option chosen by all aspiring entrepreneurs. Based in a small pavilion with an area of 25-40 sq. m.
Market and Competition Assessment