business plan for opening a retail store

Retail Business Plan Template

Written by Dave Lavinsky

Retail Business Plan

You’ve come to the right place to create your retail business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their retail companies.

Retail Business Plan Template & Sample

Below is a retail business plan template to help you create each section of your retail store business plan.

Executive Summary

Business overview.

Artisan Home & Decor is a startup retail shop located in Pasadena, California. The company is founded by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing a store and the education on how to run a retail business, she is inspired to start her own company, Artisan Home & Decor. Joyce is confident that her ability to effectively manage employees, customer relationships, and retail operations will help her establish a profitable retail store. Joyce plans on recruiting a team of highly qualified sales associates, accountants, and buyers to help manage the day to day complexities of retail – marketing, sales, budgeting, sourcing, and purchasing.

Artisan Home & Decor will provide uniquely curated home decor products created by local artisans. The home decor shop will be the ultimate choice for customers in Pasadena who value one-of-a-kind pieces for their homes. Artisan Home & Decor will provide its customers with a refreshingly personalized shopping experience they can’t get anywhere else. The shop’s sales associates will be able to help customers find the perfect pieces to suit their individual preferences and styles.

Product Offering

The following are the products that Artisan Home & Decor will provide:

• Lamps & Lighting
• Throw Blankets
• Photo Frames
• Cookware Sets
• Kitchen Gadgets
• Kitchen and Bathroom Fixtures
• Waste Baskets
• Soap Dispensers

Customer Focus

Artisan Home & Decor will target home decor shoppers looking for a personalized experience and unique pieces in Pasadena. The company will target boomer, millennial, and gen z  consumers looking for unique decor for their homes, apartments, or condos. They will also target businesses looking for special pieces to furnish their corporate offices, waiting rooms, and lobbies. No matter the client, Artisan Home & Decor will deliver the best communication, service, and high quality products.

Management Team

Artisan Home & Decor will be owned and operated by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing retail stores and the education on how to run a retail business, she is inspired to start her own company, Artisan Home & Decor.

Joyce Hernandez has recruited her former assistant manager, Melissa Jacobs to come on board to help her manage Artisan Home & Decor. While Joyce will oversee the employees, day-to-day operations, and client relationships, Melissa will be the Inventory Manager. She will be in charge of sourcing, purchasing, and pricing all inventory. Melissa will work directly with suppliers to stock the retail shop with unique artisan pieces.

Melissa is a graduate of the University of California with a Bachelor’s degree in Interior Design. She has been working at a local retail home decor company for over a decade as an assistant manager. Melissa has an eye for design and keen organizational skills that will allow her to effectively manage Artisan Home & Decor’s one-of-a-kind inventory. Her communication skills will enable her to establish and maintain working relationships with artisans and suppliers.

Success Factors

Artisan Home & Decor will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of sales associates and interior design experts that are able to provide a personalized customer experience and help each client find the right home decor pieces to suit their preferences.
• Artisan Home & Decor will bring fresh inventory into their retail store on a regular basis so there will always be something new for customers to check out. In addition to in-store sales, the company will sell pieces online through its website.
• Artisan Home & Decor offers one-of-kind pieces created by local artisans to suit a wide variety of home decor styles and tastes. By purchasing from the shop, customers are supporting these local artisans and getting fresh decor that no one else will have.

Financial Highlights

Artisan Home & Decor is seeking $210,000 in debt financing to launch its retail business. The funding will be dedicated towards securing and building out the retail space and purchasing the initial inventory. Funds will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for print ads, website and SEO marketing initiatives, and association memberships. The breakout of the funding is below:

• Retail space build-out: $25,000
• Retail store shelving, displays, equipment, supplies, and materials: $40,000
• Three months of overhead expenses (payroll, rent, utilities): $120,000
• Marketing costs: $15,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Artisan Home & Decor.

Company Overview

Who is artisan home & decor.

Artisan Home & Decor is a newly established retail company in Pasadena, California. The new home decor shop will be the ultimate choice for people looking for uniquely curated one-of-a-kind furniture and other home products crafted by local artisans. Artisan Home & Decor will provide its customers with a refreshingly personalized shopping experience they can’t get anywhere else. The shop’s sales associates and experienced interior designers will be able to help customers find the right pieces to suit their preferences and styles.

Artisan Home & Decor will be able to provide a personalized shopping experience for serving customers in-store and online. The team of professionals and sales associates are highly qualified and experienced in interior design, home decor, and the customer experience. Artisan Home & Decor removes all headaches and issues of the home decor shopper and ensures all issues are taken care off expeditiously while delivering the best customer service.

Artisan Home & Decor History

Artisan Home & Decor is owned and operated by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing retail stores and the education on how to run a retail business, she is ready to start her own company. Joyce is confident that her ability to effectively manage employees, customer relationships, and retail operations will help her establish a profitable retail store. Joyce has begun recruiting a team of highly qualified sales associates, accountants, and buyers to help manage the day to day complexities of retail – marketing, sales, budgeting, sourcing, and purchasing.

Since incorporation, Artisan Home & Decor has achieved the following milestones:

• Registered Artisan Home & Decor, LLC to transact business in the state of California.
• Has a contract in place to lease the retail space.
• Reached out to numerous local artisans to advise them on the upcoming retail shop in order to start getting supplier contracts.
• Began recruiting a staff of sales associates, interior designers, an accountant/bookkeeper, marketing director, and assistant manager to work at Artisan Home & Decor.

Artisan Home & Decor Services

Industry analysis.

The retail industry in the United States is valued at over $4T currently and is forecasted to reach $4.9T by the end of 2022. This is up from $3.8T in 2019. After a decade of retail decline between 2010 and 2020, the market is rebounding at a surprising rate. There were twice as many store openings as closings in 2021 alone. The number of brick-and-mortar retail establishments is increasing even as ecommerce shopping has grown by 70% in the last three years.

The role of retail stores is evolving and industry operators are discovering in-store experiences are still vital from the customer perspective. Successful brick-and-mortar industry operators are incorporating ecommerce into their business models. Trends include providing ship-from-store and buy online, pickup in store options to give customers more flexibility in the way they can shop. Key success factors include the level of customer satisfaction, product selection, prices, and convenience.

Customer Analysis

Demographic profile of target market.

The precise demographics for Pasadena, California are:

Customer Segmentation

Artisan Home & Decor will primarily target the following customer profiles:

• Millennial customers looking for one-of-a-kind home decor
• Boomer customers looking for one-of-a-kind home decor
• Gen z customers looking for one-of-a-kind home decor
• Businesses looking for unique decor for their offices, waiting rooms, or lobbies

Competitive Analysis

Direct and indirect competitors.

Artisan Home & Decor will face competition from other retailers with similar business profiles. A description of each competitor company is below.

Pasadena Home Decor

Pasadena Home Decor provides high-end home decor for the conscientious consumer. Located in Pasadena, California, the home decor retailer is able to provide a tailored shopping experience for its customers. The store’s list of products includes tables, chairs, wall hangings, rugs, vases, photo frames, candles, office decor, and paintings by local artists. Pasadena Home Decor sells online and in-store to give customers flexibility.

Pasadena Home Decor’s promise is to deliver high quality pieces that will stand out. Customers who purchase furniture and home decor from Pasadena Home Decor will be delighted with the customer service, cleanliness of the store, and personalized design services the company offers.

Home Shoppe

Home Shoppe is a California-based home decor retail store that provides outstanding pieces for discerning clientele. Home Shoppe stocks unique furniture and other decor items that are 100% hand-crafted. The owners of Home Shoppe are experienced craftsmen themselves, so they know how quality furniture and home decor pieces should be made. Clients can depend on their selection of products for durability, style, and eco-friendly materials. Choose Home Shoppe for your next home decor project and let the sales team take the stress out of the redecorating process by helping you select the best products for your home.

Redecorating For You

Redecorating For You is a trusted Pasadena retail company that provides superior home decor products for shoppers in Pasadena and the surrounding areas. The shop offers an extensive inventory of home decor items in a variety of styles so there is something for every taste. Redecorating For You is able to provide premium pieces that fill every space with elegance and style. The shop also eases the stress of redecorating by providing in-store pickup and delivery options for busy customers.

Competitive Advantage

Artisan Home & Decor will be able to offer the following advantages over their competition:

• Artisan Home & Decor will bring fresh inventory into the store on a regular basis so there will always be something new for customers to check out. In addition to in-store sales, the company will sell pieces online through its website.
• Artisan Home & Decor offers one-of-kind pieces created by local artisans to suit a wide variety of home decor styles and tastes.

Marketing Plan

Brand & value proposition.

Artisan Home & Decor will offer the unique value proposition to its clientele:

• Artisan Home & Decor will make redecorating easy for customers by providing in-store shopping, pickup, delivery, online shopping, ship-from-store, and buy online-pickup in store options.
• By purchasing from the shop, customers are supporting local artisans and getting fresh decor that no one else will have.

Promotions Strategy

The promotions strategy for Artisan Home & Decor is as follows:

Social Media Marketing

The company will use various social media platforms such as TikTok, Instagram, Facebook, LinkedIn, YouTube, and Snapchat to promote the shop, feature artisans, and show off new pieces. The marketing director will oversee the social media marketing activities to grow the customer base.

Professional Associations and Networking

Artisan Home & Decor will become a member of professional associations such as the National Retail Federation, California Retailers Association, and the Home Furnishings Association. The company will focus its networking efforts on expanding its network of clients, designers, and artisans.

Print Advertising

Artisan Home & Decor will invest in professionally designed print ads to display in programs or flyers at industry networking events, in home decor publications, and direct mailers.

Website/SEO Marketing

Artisan Home & Decor’s marketing director will be responsible for creating and maintaining the company website. The website will be well organized, informative, and list all of the products currently available for purchase online.

The marketing director will also manage Artisan Home & Decor’s website presence with SEO marketing tactics so that any time someone types in the Google or Bing search engine “Pasadena home decor retailer” or “home decor store near me”, Artisan Home & Decor will be listed at the top of the search results.

The pricing of Artisan Home & Decor will be premium and on par with competitors so customers feel they receive value when purchasing the one-of-a-kind products.

Operations Plan

The following will be the operations plan for Artisan Home & Decor.

Operation Functions:

• Joyce Hernandez will be the Owner and Manager of the store. She will oversee all staff and manage day-to-day operations. Joyce has spent the past year recruiting the following staff:
• Melissa Jacobs – Inventory Manager who will be responsible for sourcing, purchasing, pricing, and maintaining the inventory.
• Robert Brown – Staff Accountant/bookkeeper who will provide all store accounting, tax payments, and monthly financial reporting.
• Bill Johnson – Marketing Director who will provide all marketing and sales activities for Artisan Home & Decor including maintaining the website, social media, print advertising, and promotions.
• Julia Smith – Lead Sales Associate & Designer who will manage all sales associates and provide design services for customers.

Milestones:

Artisan Home & Decor will have the following milestones complete in the next six months.

9/1/2022 – Finalize contract to lease the retail space.

9/15/2022 – Finalize personnel and staff employment contracts for the management team.

10/1/2022 – Finalize contracts for suppliers.

10/15/2022 – Begin networking at industry events and implement the marketing plan.

10/22/2022 – Begin moving into the Artisan Home & Decor shop.

11/1/2022 – Artisan Home & Decor opens for business.

Artisan Home & Decor will be owned and operated by Joyce Hernandez, a retailer who has worked as a store manager of a local home decor store for nearly a decade. Joyce has recently graduated from California University with a Bachelor’s degree in Business Management. Now that she has gained real-world experience managing a store and the education on how to run a retail business, she is inspired to start her own company, Artisan Home & Decor.

Melissa is a graduate of the University of California with a Bachelor’s degree in Interior Design. She has been working at a local retail home decor company for over a decade as an assistant manager. Melissa has an eye for design and keen organizational skills that will allow her to effectively manage Artisan Home & Decor’s one-of-a-kind inventory. Her communication skills will enable her to establish and maintain working relationships with suppliers.

Financial Plan

Key revenue & costs.

The revenue drivers for Artisan Home & Decor are the retail fees they will charge to the customers in exchange for their products. The shop will charge a healthy margin to make sure artisans are paid well for their products while ensuring a solid profit for the business.

The cost drivers will be the overhead costs required in order to staff a retail store. The expenses will be the payroll cost, rent, utilities, store supplies, and marketing materials.

Funding Requirements and Use of Funds

• Store shelving, displays, equipment, supplies, and materials: $40,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average number of items sold per month: 300
• Average sales per month: $90,000
• Retail space lease per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, retail business plan template faqs, what is a retail business plan.

A retail business plan is a plan to start and/or grow your retail business. Among other things, it outlines your business concept, identifies your target market, presents your marketing plan and details your financial projections.

You can  easily complete your retail business plan using our Retail Business Plan Template here .

What are the Main Types of Retail Businesses?

There are a number of different kinds of retail businesses, some examples include: Specialty Store, Off-Priced/Used Goods Store, Department Store, Convenience Store, Drug Store/Pharmacy, Discount Store, Hypermarket, and E-commerce.

How Do You Get Funding for Your Retail Business Plan?

Retail businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A solid retail business plan with comprehensive financial statements will help show investors your are well-prepared to start your own business.  A retail business plan template will help you quickly and easily get started.

What are the Steps To Start a Retail Business?

Starting a retail business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Retail Business Plan - The first step in starting a business is to create a detailed retail store business plan that outlines all aspects of the venture. This should include supporting market research, your potential market size and target customers, the services or products you will offer, marketing strategy, your competitive advantages and detailed financial projections.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your retail business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your retail business is in compliance with local laws.

3. Register Your Retail Business - Once you have chosen a legal structure, the next step is to register your retail business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your retail business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Retail Equipment & Supplies - In order to start your retail business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your retail business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Where Can I Get a Retail Business Plan PDF?

You can download our free retail business plan template PDF here . This is a sample retail business plan template you can use in PDF format.

Other Helpful Business Plan Templates

Ecommerce Business Plan Template Clothing Store Business Plan Template Beauty Supply Store Business Plan Template T-Shirt Business Plan Template

Retail | How To

How to Start a Retail Business in 13 Steps

Published September 15, 2022

Published Sep 15, 2022

REVIEWED BY: Meaghan Brophy

WRITTEN BY: Brigitte Korte

Get Your Free Ebook

Your Privacy is important to us.

This article is part of a larger series on Retail Management .

Starting A Business?

• Step 1: Create a Business Plan
• Step 2: Determine Your Niche

Step 3: Develop Your Brand

• Step 4: Choose a Legal Structure

Step 5: Organize Your Finances

Step 6: launch your online store.

• Step 7: Secure Funding
• Step 8: Choose a Storefront Location
• Step 9: Design Your Interior
• Step 10: Choose a Retail POS System
• Step 11: Hire & Train Retail Staff

Step 12: Build Your Marketing Plan

Step 13: ensure you’re compliant, bottom line.

To open a successful brick-and-mortar store, you need a business plan (including market research) and legal structure for your business, an ideal storefront location, startup funding, inventory, and a team of employees ready to start selling. Plus, in today’s market, you’ll also want to launch an accompanying online store and start marketing your business.

Learn how to start a retail business in 13 simple steps:

Step 1: Create a Retail Store Business Plan

A business plan is a written document containing the goals of a business, the methods for attaining those goals, and the time frame for the achievement of the goals. It is what you present to potential investors and a crucial first step for starting any business. Not only that, writing a business plan gives you a definitive path to follow, ensures you’ve done proper market research, and sets you up for success.

The Small Business Administration (SBA) outlines two types of business plans: traditional and lean startup.

• Traditional business plans are more thorough and ideal if you’re requesting funding from banks or other traditional loan sources.
• Lean startup business plans are more informal and designed for businesses that are more fluid and will change a lot as they grow.

You can also create a shorter, one-page business plan. Learn how with our one-page business plan guide .

When opening a retail store, we recommend following a traditional business plan as it’s more detailed—it can never hurt to be too prepared. Plus, it will provide a more concrete outline for you and your business partners or possible investors.

Elements of a Business Plan

The nine elements of a traditional business plan are:

• Executive summary: High-level paragraph outlining your company’s purpose, mission, and why it will be successful.
• Company description: Be specific about your company’s details, including what problem you are aiming to solve, how you will solve it, what consumers you plan to serve, and the talent on your team.
• Market analysis: Include industry outlook and trends, what successful competitors are doing, and what your strengths will be.
• Organization and management: Outline who will be running your business and the experience your team members have in retail or startup environments.
• Product line: Outline what kinds of products you will sell, why they are needed, and include any research and development on private labels or proprietary custom products.
• Marketing and sales: Describe the tactics you will use to obtain and retain customers.
• Funding requests: If you need outside funding, outline your needs and specify exactly how you will use the funds.
• Financial projections: Detail how your business will become stable and profitable, including a projected financial timeline of at least five years.
• Appendix: Use this space for any supplemental documents, such as product prototypes and pictures, credit histories, licenses, and permits.

This may seem like a lot of information, but it’s best to keep each section succinct so readers can easily get through the entire document and absorb all of the information.

Be sure you are answering the “why” behind the “how” of starting a retail business. Why are the strategies you selected for achieving your business plan the best? Why will they work?

Writing Your Business Plan

When it comes to actually writing and formatting your business plan, there are a few different options to choose from. Of course, you can type it out in traditional word processing software like Microsoft Word or Google Docs. You can also build your business plan as a slideshow in PowerPoint, which is a great option if you need to present your plan to an audience.

There are also business plan software tools available, such as LivePlan , that have industry-specific templates. You can also use this business plan template and checklist or enlist the help of business plan writing services .

FILE TO DOWNLOAD OR INTEGRATE

How to Start Your Business ebook

Thank you for downloading!

Step 2: determine your niche & select products.

A niche is the subset of the market to whom your business and products seek to appeal. This subset can be defined by its own unique needs, preferences, or identity that makes it different from the market at large. Your niche will define the products you sell, your price range, product quality, and marketing initiatives.

The narrower your niche market, the easier it is to become the go-to retail destination for that market. For example, there may be a dozen stores in town that sell pet products, but you may be the only retailer that specializes in dog costumes or organic food options.

Carving out a niche for your retail store helps differentiate your business from the competition. With retail giants like Amazon and Walmart, the competition is fiercer than ever. And truthfully, many large retailers, like department and box stores, carry very similar products. Aside from the feel-good nature of shopping small, having something unique to offer will help you beat out big box retailers.

You can find your niche market by:

• Listing your hobbies and interests

As a store owner, you will spend a lot of time engulfed in your chosen niche, so your own interests are a good place to start. Plus, choosing something you’re interested in will make your store more authentic.

• Researching the potential for each niche

Make sure you choose a topic that has good money-making potential by doing research on Google Trends and checking out competitors on social media.

The phrase “dog costumes” appear to be trending downward in search, indicating a different niche may present a more long-term opportunity.

• Evaluating potential profits

Determine how profitable each niche could be by looking at industry statistics and Amazon Best Seller lists to see what sales are like for your chosen categories. You can also research wholesale prices for products on sites like Alibaba and compare them to typical retail prices to get a sense of potential profit margins.

Amazon Best Sellers lists highlight popular products by category.

Sourcing Products From Suppliers

Once you’ve narrowed in on your niche products, it’s time to find a reliable supplier for those products. When figuring out how to source products for your retail business, you’ll first need to understand the different options.

• Manufacturer : You develop the product concept and outsource the creation. This option allows for the most control over the product but also takes comparatively long.
• Wholesaler : Wholesalers develop products and sell them in bulk to retailers for a discounted price. Retailers then resell those items for a profit. This is the quickest route for product sourcing, but it also allows for the least control over the product.
• Dropship : Dropshipping is when you sell products directly to customers and then outsource the manufacturing and fulfillment for each order. It is the most hands-off option, but also yields the lowest profit margins.

In the news:

As we know, inflation is a major consideration for both retailers and consumers in the post-pandemic era. However, the National Retail Federation has been putting pressure on the current administration to lower tariffs on everyday items to help lower inflation. In response, President Biden recently signed the Ocean Shipping Reform Act , which aims at improving maritime trade practices and lowering supply chain costs.

When choosing your supplier, research a few different options and order samples from two to five suppliers. Undergo quality assurance testing to narrow down which items you want to source. From there, nurture vendor relationships with effective communication and efficient payment—eventually, you can negotiate discounts, especially for high-volume orders.

The COVID-19 pandemic brought many challenges to supply chains all over the world, and many suppliers are still seeing its effects. As a retailer, you can plan for these issues by padding timelines, vetting suppliers, having multiple sources for your most popular products, and choosing local suppliers when possible.

Retail Market Research

Instead of starting with niche products and then researching to find their market, you can also start by doing primary market research. This is a type of market research where you go straight to your target consumers and ask them questions to figure out their interests. In other words, you are starting with your consumer and their needs rather than starting with a product and then finding the right audience.

When you’re opening a physical brick-and-mortar storefront, you can study your local audience directly to determine their needs. It’s possible, and likely, that there are some specific needs locals have that your store can fill.

Effective primary market research tactics include:

• Consumer Panels & Focus Groups

Surveys are an easy and effective way to gather a lot of useful data. Established businesses typically use their customer database to send out emails. But, because you don’t yet have a customer database, you can promote your survey through local Facebook groups and targeted Facebook ads.

Your first surveys can be very broad and simply ask local consumers why they like their current favorite stores and interests. As you get closer to choosing specific products, you can send out surveys to measure customer interest and reaction to specific items.

Surveys can provide more accurate data than a focus group or consumer panel, but these types of information-gathering sessions can provide nuanced details and deeper insights that might otherwise be missed in a survey.

Tips for how to conduct focus groups:

• Keep your group small: Around eight to 10 participants is ideal so everyone’s voice can be heard.
• Incentivize participants: In your advertisements, make it clear there is a cash or gift card compensation for their time.
• Choose participants wisely: Have participants RSVP to make sure they live or work near your store’s future location.
• Have participants fill out a contact form before you begin: Provide consent forms indicating their responses will be recorded.
• Start with general questions: Get the group started by asking general icebreaker questions. Then move into asking for feedback on products and shopping preferences.
• Make sure everyone gets equal talking time: Your goal is to get a variety of opinions, so do your best to prevent one or two participants from dominating the conversation.
• Stay neutral: Remember to stay open to feedback and don’t guide participants or try to persuade them. Focus groups are all about collecting feedback. There’s no need for consensus.

Your products are just one part of your retail business. Developing a brand or your business’ identity is also important because it attracts new customers and builds strong relationships with existing ones. Your brand identity is the essence of who you are as a store—it creates the feel that customers associate with your business and maintains cohesiveness between your products and aesthetic.

You only get seven seconds to make a first impression , but it takes up to seven impressions to create brand awareness. Read about this and more in our article on Branding Statistics Every Small Business Should Know .

When defining your brand, ask yourself what feelings you want your business to evoke. Tap into your market research—look at who your biggest competitors are and think about what their branding looks like and how you can differentiate your store from theirs. All of this information helps build the foundation of your brand.

Elements of your brand include:

• Visual branding such as logo , storefront, fonts, signage , and colors.
• Store name and slogan that are completely unique to you. Use this free business name generator to help come up with ideas.
• Mission statement and vision statement that outline how you want to serve your community and customers.
• Positioning in your niche, market, community—and what sets you apart from the competition.

Step 4: Choose a Legal Structure for Your Retail Business

Choosing a legal structure for your business is important because it determines how to collect and report taxes, how you’ll get paid from your business, and your level of personal liability. There are many types of legal structures, but the three most commonly found in retail are sole proprietorships, limited liability companies (LLCs), and corporations.

• Sole Proprietorship
• Limited Liability Company
• Corporation or C-corp

If you don’t set up a legal structure for your business, sole proprietorship is the default. It essentially means you’re doing business as an individual and therefore not separated from your business in any way.

Read more about the pros and cons of sole proprietorships .

Limited liability companies or LLCs are legal structures for small businesses that protect your personal assets, such as your house and car, in the case of lawsuits or business bankruptcy. This is the most popular legal structure for small retail businesses, and the one we recommend if you’re planning on maintaining a single storefront.

Read more about the pros and cons of LLCs .

Corporations or C-corps are the most structured legal form for your retail business. They have strict tax guidelines. When you create a corporation, it’s a completely new and separate entity in the eyes of the government and the Internal Revenue Service.

Read more about C-corps .

Regardless of which legal structure you choose, it’s critical to separate your business finances from your personal accounts right from the beginning. Having a dedicated business account will make it much easier to track expenses and income, which will help you stay on track financially. Plus, you’ll have an easier time filing your taxes. Not to mention, if your personal and business finances are combined, that could “pierce the corporate veil” of your LLC if things go wrong.

Choose a Retail Business Bank Account

When it comes to choosing a small business checking account , the options are virtually unlimited. Look for a bank that’s small business-friendly with few fees. Make sure there are branches close to your store or home. As a retailer, you’ll likely be making many cash deposits and making change, so getting to the bank should be convenient.

Consider other features that will make your life easier, such as mobile banking and online check deposit. Also, consider whether or not the bank has features that will help as your business grows, such as business credit accounts, loans, and overall branch location accessibility.

To get help choosing the best small business banking solutions for your business, check out the following guides:

• Best Banks for Small Businesses
• Best Bank Accounts for Self-employed Professionals
• Best Free Business Checking Accounts
• Best Online Business Banks
• Best Banks for Startups

Invest in Accounting Software for Retailers

In addition to a small business checking account, you’ll also want to have an accounting software program. There are a lot of expenses associated with running a retail store, such as products and shipping, employee wages, and advertising costs. Accurately tracking your income and expenses will help you see exactly how much revenue you’re making, understand where your expenses are high, determine your product purchasing budget, and make filing taxes a million times easier.

QuickBooks is one of our favorite accounting programs for small businesses because it is affordable, user-friendly, and integrates with many popular retail point-of-sale (POS) systems (we’ll cover POS systems below). It’s particularly good for retailers because it has retail-specific report bundles available—including reports like gross margin by inventory volume—and integrates with ecommerce solutions. QuickBooks plans start at just $10 per month, plus they offer a free 30-day trial.

While you might be opening a physical retail store, in today’s market, you will also want to launch an accompanying digital storefront. Your bottom line has a lot to gain from launching an online store—in tandem with your retail store, it can help you reach a larger audience, geographically speaking, and it also gives you another channel where you can nurture existing customer relationships.

Forecasters from eMarketer expect multichannel sales to make up close to 46% of all ecommerce sales by 2023, up from 40% in 2019. This 46% will amount to more than $585 billion in sales—and those are sales you don’t want to miss.

To start with the launch of your online store, you will first need to choose an ecommerce platform that integrates with your POS system and accounting software. Most modern ecommerce platforms have templates and tools to help you design your store, or you can hire a professional to help.

We recommend Shopify as the top, user-friendly, high-value ecommerce platform. Not only that, every Shopify ecommerce subscription comes with a Shopify POS system for seamless integration.

From there, you will want to get your order fulfillment and shipping figured out so that you can get customers their orders.

You should also consider offering click-and-collect services for your local customers. At the onset of the pandemic, buy online, pick up in-store (BOPIS) increased from 15% of orders to 25% , a 65% share increase, and this BOPIS momentum doesn’t look like it’s slowing down anytime soon.

Not sure where to start with your ecommerce site? We put together an entire guide to take you through how to start an online store . You can also check out these resources:

• Best Free Ecommerce Website Builders
• BigCommerce vs Shopify Comparison
• Shopify Review

Step 7: Secure Funding for Your Retail Store

Opening a retail store requires a lot of upfront investment. You need to sign a lease on a physical space, invest in renovating that space, purchase products, set up your POS system and payment processing hardware, advertise like crazy, invest in a grand opening, and pay staff. It sounds expensive because it is expensive. Altogether, opening a retail store can cost up to $100,000 .

To fund your retail store, ideally, you have a decent chunk of your upfront costs saved that you can invest personally. But, there are also plenty of small business funding options where you can secure capital from external sources.

Some of those options include:

• Small business loans : You find these loans from banks, credit unions, the SBA, and even your existing network of connections. This is where your formal business plan will come into play—it shows investors your path to success (and to getting a return on their investment).
• Credit cards: If you’re just starting out and have no business income history, or if you have a lower credit score, choosing a business credit card may be the better option. A credit card will also give you more flexibility to account for unexpected expenses. Visit our guide on the best small business credit cards to see which one may be right for you.
• Crowdfunding : Crowdfunding is a great way to build buzz for your store and get people financially and personally invested in it. Plus, you don’t need to pay this money back.

The biggest factors to consider when taking out a loan are the interest rates (AIRs), upfront fees, and application requirements. Typical AIRs vary based on your loan type but should look something like this:

An alternative option for funding your business is using your IRA or 401(k) retirement account. Your initial reaction to this idea may be, “Whoa, absolutely not.” But, using your retirement account to fund your business doesn’t necessarily mean you’re cashing out or borrowing against your account.

Instead, there’s an option called Rollover for Business Startups (ROBS) , which lets you invest retirement funds into your new business without paying taxes or early withdrawal penalties. This process can be complicated. So, if you’re interested in using your retirement account to fund your business, we recommend working with an experienced provider like Guidant .

Step 8: Choose a Storefront Location to Open Your Retail Store

Choosing a location for your business can seem overwhelming: Where do you start? How do you know if you’re choosing a profitable area? Will people even want to come to your location?

When choosing a location for your business, narrow down your options first based on practicality and convenience. Consider how far you’re realistically willing to commute every day for the foreseeable future. Choose areas that are easily accessible from your residence. Spend time in each area to become familiar with specific neighborhood demographics and preferences and to scope out other local businesses.

From there, you can start looking at listings in your desired area and finding a space that will work for you and your needs. Contacting listings directly can offer the best deal; however, working with a real estate agent will give you peace of mind in the contract negotiations and help you find the best space for your business.

Learn more in our guide on how to find and lease retail space , which includes different types of leases, terms to be aware of, and how to calculate your monthly rent budget.

Below are some ways that you can get to know a neighborhood and narrow down your perfect location:

Analyze Foot Traffic

For many retailers, foot traffic can account for most, if not all, of sales. This is especially true for convenience stores, for example, where almost all sales are walk-in impulse buys. But, if you’re operating a dog costume specialty shop, you might have more customers drive specifically to your store.

Our guide to determining foot traffic outlines how to calculate whether it’s worth splurging on a prime storefront location. It’s also important to consider the different types of foot traffic and what time of day it occurs. It may not always be what you expect.

For example, there’s a cafe and bakery in my hometown, both located in a central business district. It’s a few minutes out of the way for most commuters, so they do decent business during the morning rush hour. But, the cafe is only a block away from the town’s middle school. Its business is slammed on weekdays around 2 p.m. with all of the teenagers who walk over when school gets out.

This is one example of a foot traffic pattern you wouldn’t be able to predict if you weren’t familiar with the area, which is why it’s important to spend lots of time casing out prospective store locations.

Foot traffic is an important data point to continue using even after your store is up and running. It helps your staff more accurately identify missed sales opportunities. Solutions like Dor will track foot traffic data and integrate with many popular POS solutions.

Talk to Your New Neighbors

In addition to staking out your prospective storefront, inquire about the traffic, shopper demographic, and neighborhood. Ask your listing agent as many questions as you can while viewing the space. But, keep in mind their motive of getting a lease signed. Instead, visit neighboring businesses, introduce yourself, and ask business owners or managers if you can take them out for coffee to get some feedback on the location.

Important questions to ask about the property include:

• Who is the landlord and how is the property managed? Other businesses and employees in the space you are interested in will give you honest feedback about the landlord’s maintenance style and how they handle things like snow removal and general property upkeep.
• Why did the previous tenants leave? Look into tenant turnover in the complex, and talk to tenants who left, if possible, to discuss their experience in the space.
• What’s the busiest time of day and days of the week? Get other tenants’ opinions on traffic to the area.
• How long do tenants stay in the space? If you’re in an area surrounded by other storefronts, it’s best if they are established stores with regular customers that can help drive traffic to your new shop.

Consider Parking & Signage

In addition to foot traffic and tenant feedback, it’s also important to consider other storefront factors that can majorly impact your retail business. For example, does the space have a dedicated parking lot? If there isn’t a dedicated lot with ample spaces, and street parking is difficult, potential shoppers might not make the effort to visit your store.

Also, consider what signage and street-facing display options are available. To draw in all of that foot traffic you monitored, shoppers need to know your business is there. Ideally, your storefront will be facing a busy street. If the location is set further back, is there a large sign by the driveway where passersby can easily see what businesses are inside? Ask the listing agent and neighboring tenant about what signage options are available and who pays for them.

Additionally, make sure you’re aware of any town or city policies that could affect your storefront marketing. For example, some towns place restrictions on how big the sign on the front of your store can be. Other towns forbid temporary signage like A-frames.

Don’t Ignore Your Budget

As we mentioned earlier, splurging on a prime location can be a savvy move if you’re opening the type of retail store that relies heavily on impulse purchases, such as a corner convenience store or a souvenir shop in a tourist town. But, most boutiques need to stick within their budgets, which means spending less than 10% of your monthly gross sales on rent.

Learn more about how to create a budget and budgeting best practices with our article How To Budget a Retail Business (+ Free Templates) .

Step 9: Design Your Retail Store Interior

After securing a retail storefront, it’s time to start strategically planning the interior. Strategically planning your store layout is so important because it has a dramatic impact on in-store sales. A well-designed layout will welcome shoppers, make them feel comfortable, and direct them toward specific products.

Choose a Layout Structure

The first thing you need to decide is what type of floor plan you want. This will largely depend on the type of store you’re opening. Most retail stores fit into one of these basic layout categories:

Place Your Checkout

A well-positioned checkout will open up prime retail space for displaying products and encourage shoppers to move through more of your store. Instinct might tell you to place your checkout at the front of the store so that it’s most visible or on the right-hand side of your store where traffic tends to flow. But, the best place to position a retail checkout counter is often on the left side of a store.

Shoppers naturally veer toward the right side of a store when they walk inside. So, that’s where you want to display money-making products and new products. Some department stores and larger mall retailers place their checkout counters at the back of the store. However, for smaller retailers, placing your checkout toward the front makes it easier for staff to attend the register and keep an eye on the entrance.

This small-footprint retail store layout features a checkout counter on the left side of the store, with featured products displayed on the right side.

Learn more about how to set up your checkout to drive sales .

Outfit With Fixtures & Displays

Once you have the bones of your store layout and checkout counter placed, you’ll also need to invest in display fixtures, signage, and lighting. Start with parts of the store that will be mostly permanent: counters, lighting installations, dressing rooms, and any fixed shelving.

Because these pieces will be permanent, invest in high-quality items that will form a cohesive look and won’t fall out of trend. From there, you can outfit the rest of your store with more affordable, temporary merchandise displays and decorations that are easier to swap out with the seasons or trends.

Read our guides below for step-by-step instructions on setting different fixtures and displays:

• How to select and design retail lighting
• How to design the best storefront sign for your business
• Tips for great fitting room design
• Store design ideas for increasing sales

Position Your Products for Success

Exactly how you merchandise your products will depend on what type of store you have and the layout you choose. But there are a few simple tricks you can use to boost sales in any store environment.

• Eye level is buy level : Products placed at eye level instead of above or below are more likely to be seen and purchased.
• Place seasonal products and new arrivals front and center : Many retailers utilize a table display five to 15 feet inside the entrance that’s updated almost daily to show off new and limited products.
• Drive impulse sales at the point of purchase : Think candy at the grocery checkout; placing small, low-cost but useful or appealing items like phone chargers, Chapstick, and lottery tickets near the checkout counter is an effective way to drive add-on sales.
• Keep it comfortable : Shoppers who spend more time in your store also spend more money; encourage shoppers to stay awhile with Wi-Fi, product demos, and comfortable seating.

For more tips on how to merchandise your store, download our store layout e-book for step-by-step instructions.

Download Free Store Layout Checklist

Step 10: Choose & Install a Retail POS System

Another major piece of opening a retail store is selecting a point-of-sale (POS) system . Most basically, your POS system is the software that processes transactions and completes in-person sales. Modern POS systems, however, do much more than that, acting as the heart of all store management, including CRM, inventory, payment processing, ecommerce, reporting, vendor management, and more. Using a POS system will save you time, streamline all your management tools into one platform, and provide deeper insights into your business.

There are many factors to consider when selecting a POS. Before you start seriously considering different options, it’s important to write down a wish list of what features you want. Some of the criteria we use to evaluate the best retail POS systems include:

• Price: Most POS software programs charge a monthly fee, and some also charge extra for certain features like advanced inventory management.
• Setup and installation process: Some POS systems have a DIY installation process; others charge a hefty professional installation fee. You should also note the integration capabilities and process.
• Ease of use: Test out the POS to make sure the interface is comfortable to navigate; also, read user and expert reviews to be aware of any glitches or common problems.
• Inventory management: Make sure the retail inventory management solution you use has features to bulk upload orders, set stock alerts, and create purchase orders directly from the system to save you time.
• Customer management tools: Almost all POS systems have a customer directory feature, but otherwise, they vary greatly in what loyalty, marketing, and customer feedback features are included.
• Ecommerce functions: If you have plans to also sell online, make sure the POS you choose also has an online store feature so all of your inventory, customer, and order information syncs between online and offline sales.
• Payment processing: Some POS providers have built-in, in-house payment processors, and others let you integrate with third-party options for no fee.

For traditional brick-and-mortar stores, boutiques, and specialty shops, we often recommend Lightspeed . It’s a small business POS with big business functionality like custom report builders and advanced inventory management tools (such as built-in product ordering) and offers a sophisticated ecommerce platform.

Lightspeed Retail POS (Source: Lightspeed)

Choose a Credit Card & Payment Processor

Once you have a POS system selected, you need to choose a credit card processing company or merchant services provider. Some POS systems include their own in-house payment processing, while others require you to use a third party. The two most important things to consider when choosing a retail credit card processing company are price and compatibility with your POS.

When it comes to price, there are three main types of card processing fee structures:

• Flat rate: Processing companies charge a set percentage of the transaction; this is usually a good option for retailers such as convenience stores that have lower average sales (under $20).
• Interchange plus: Processing companies pass along the interchange fees from Visa, Mastercard, and similar payment processors and add a per-transaction fee on top; this is usually a good option for most established specialty shops.
• Tiered: Processors charge a different rate depending on the type of credit or debit card used in the transaction; we typically don’t recommend choosing a processor with this fee structure because it’s unpredictable and often more expensive.

Credit card processing fees can be notoriously murky and difficult to pin down. Our credit card processing fees guide defines common terms and breaks down different types of fees in detail.

Some card processing companies also charge monthly fees, and some have lengthier application processes than others. Many traditional merchant accounts also require contracts or have early termination fees. Be careful to read the fine print before signing with a card processing company.

The other thing to consider is whether or not the payment processor integrates with your POS system. Choosing a processor that integrates with your POS is ideal because as you ring up sales, they will automatically sync with your POS system’s sales data, inventory, and CRM. If you don’t have a payment processor that integrates with your POS, you have to input sales manually, and your data becomes susceptible to human error.

Read more about choosing the best retail credit card processors .

Step 11: Hire & Train Retail Staff

Last but certainly not least, you need to bring on a stellar group of employees to serve as the front lines of your business. If you haven’t hired an employee before, navigating the process can be really intimidating. Our new hire checklist outlines all of the gritty steps you need to take, such as obtaining an employer identification number (EIN), registering for state and local taxes, and so on.

As a small business retailer, it’s likely you won’t have a dedicated HR team member. And, hiring retail workers right now is especially challenging.

”We hear every day from our member companies—of every size and industry, across nearly every state—they’re facing unprecedented challenges trying to find enough workers to fill open jobs. Right now, the latest data shows that we have over 10 million job openings in the US—but only around 6 million unemployed workers”

– Stephanie Ferguson, Director at the Global Employment Policy & Special Initiatives, US Chamber of Commerce ​​

With this knowledge, it’s more important than ever to take your hiring seriously. Take a look at our tips below and read more with our guide to retail recruiting to learn how you can overcome hiring challenges for your retail business.

Write Attractive Job Posts

The first step in writing an accurate and compelling job post is to create the job description for the position you are hiring, whether store associate or shift manager. Then, consider what qualities would be a best fit for the position. Finally, add in at the beginning of the post what your company is and why your future employees will love working there – including an attractive pay and commission structure .

In addition to using an all-in-one HR management tool, also consider using an applicant tracking system (ATS) to manage your search for the perfect candidates. An ATS is a software program that streamlines the hiring process and tracks candidates from initial job posting to hire. Here are a couple resources to help you find the right ATS tool for your new business:

• Best Free Applicant Tracking Systems
• Best Recruiting Software

Start Training Before Your Grand Opening

Practice makes perfect with any skill, and customer service and store operations are no exception. You want your staff ready to deliver A+ service to your guests and shoppers from the minute your store opens, giving you peace of mind that they can handle store operations when you aren’t around. That’s where new hire training comes in.

You can also download our free opening and closing procedures checklists to provide to your staff. We recommend printing these lists and laminating them or keeping them in a clear sheet protector in a binder. Then associates can use expo markers to check things off each day and then erase the list at the end of the week for a fresh start.

Hold a paid training “boot camp” where you practice customer service skills, review store policies, outline expectations, and teach staff about the products in your store. Find ways to incorporate games and contests to keep the training engaging.

“Most of training is exposure; you tell them what to do, and they understand. But, until you commit to having a great sales process, in bite-sized lessons that you practice and role play, you won’t be able to hold employees accountable. Without accountability to execute that process every time, you’ll settle for whoever will work your shifts, you’ll cripple your ability to succeed, and invariably you’ll use the loser’s limp that Amazon was the reason you weren’t successful. Training isn’t something you did once—it’s something you do.”

– Bob Phibbs, CEO, The Retail Doctor retail consultancy

Now that your brand and store are ready, it’s time to build a retail marketing strategy . Your marketing strategy should outline everything from your pre-launch initiatives to your store’s grand opening and the first few weekends post-launch. This will ensure that people know about your store upon opening and that you are able to continue to attract a healthy mix of new and repeat customers.

Plan Your Grand Opening

You’ve put in months, if not years, of hard work conceptualizing your store and building it from the ground up—a grand opening is a perfect opportunity to introduce your business to the community with a bang.

Some ideas you can consider to boost your grand opening are:

• Hand out unique promotional gifts
• Provide product or service discounts
• Host games and live music
• Invite the local news and influencers
• Partner with a local group or charity

Market in Advance

Planning a party only to have no one show up is really disheartening and definitely not the tone you want to set for your new business. Make sure your event is well attended by recruiting friends and family, but also by starting your advertising efforts as soon as you have a date planned. Draft a press release to send to local media outlets and neighboring businesses. Create an event on Facebook. Take an ad out in the local paper. Go all out.

Need some inspiration for advertising your grand opening?

Learn how to write a grand opening press release .

Partner With Other Businesses

Working with similar but non-competitive businesses, such as spas, fitness centers, and other types of retailers, is a great way to tap into a pre-existing customer base. By involving other businesses, you’ll spread the word about your store to their customers, too. Tap into your local chamber of commerce, networking groups, schools, and even youth sports organizations. Invite members from those groups to attend your grand opening festivities.

Our final and possibly most important tip for starting a retail business is to ensure you’re fully compliant and legal. Be sure to comply with all local laws and regulations when opening a retail store, including but not limited to:

• Federal tax ID or EIN : Used to identify businesses for tax-paying purposes; this is a nine-digit number issued by the IRS that all employers need to apply for.
• Sales permit: Issued by the state and allows businesses to sell products and collect sales tax.
• Certificate of occupancy: Local government issues a certificate stating the building your business is inhabiting is up to code.
• Sign permits: Some local governments require permits for certain kinds of signage, like the one you may want to display on your storefront.
• Safety and health information bulletins: You may be required to display certain signage about employee rights or safety information; these are often provided to you, but it never hurts to check with your local government.
• Local COVID-19 mandates: Although these mandates are no longer as prevalent, you might be required to have a fully vaccinated team and put regular testing in place for those who are unvaccinated or enforce some type of mask-wearing rule.

If you’re unsure where to start or want to be sure you’re not missing any compliance aspects, check with your local town hall or municipal center and your local chamber of commerce.

Opening a retail store takes years of planning. But, putting in the time to make a detailed plan and execute accordingly will set you on a path to success once your business is operational.

You May Also Like…

• Our ultimate guide to managing a successful retail store
• Learn what retail metrics you should measure and how to interpret them to keep your store on track
• Ready to grow? Here’s how to know when it’s time to open a second retail store
• Launch an effective retail commission structure for your store and staff

About the Author

Find Brigitte On LinkedIn

Brigitte Korte

Brigitte is a retail specialist and staff writer with brick-and-mortar management experience. Before joining FSB, she managed a storefront for several years, working in everything from merchandising, to buying, to sales analysis. Brigitte also has a background in writing, research, and publishing, with an undergraduate degree in writing.

By downloading, you’ll automatically subscribe to our weekly newsletter.

Join Fit Small Business

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Select the newsletters you’re interested in below.

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Start a Retail Business: A Step-by-Step Guide

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If you’re thinking about starting a business in the retail industry, you’re in good company. Although local retailers don’t get the same level of attention as nationwide brands do, small retail businesses actually make up the vast majority of all U.S. retail businesses.

In fact, researchers found that small retailers (with 50 or fewer employees) made up 98.6% of all retail businesses in 2019. To break into this vibrant industry and open a store of your own, therefore, you first need to understand how to start a retail business.

To help you through the process, we’ll guide you through all the steps required to start a retail business, as well as offer additional resources to assist you on your startup journey.

How to start a retail business in 10 steps

These steps will have you running your retail business in no time. Let’s get started.

Step 1: Find your niche.

The first decision you'll need to make in order to learn how to start a retail business is figuring out your company's niche. You may already have an idea of the type of company you want to form, or you may still be grappling to figure out where to focus your retail company. To determine your niche market, we recommend:

Explore your interests and passions: Determine what you love doing or what you'll enjoy selling.

Brainstorm potential conflicts: No industry is perfect, but figuring out what obstacles or issues you could encounter in your niche will help you plan ahead and determine if an industry is a good fit for your business.

Consider profitability: At the end of the day, you want to make money from your retail business, so you'll need to find a niche that has the potential for profitability. Generally, if your niche has absolutely no competitors, it's usually a sign there's no demand, and therefore, your focus will not be profitable. Use our guide to learn more about the most profitable business ideas.

Research competitors: Once you've found a niche market using the above three steps, it's time to research your competition. Figure out how they're marketing and selling and determine what you can learn from them and how you can improve upon what they have to offer.

Retail business examples

Deciding on your niche can take a long time. It requires significant research and the passion to work within a particular market. To help you get started in identifying your niche market, here are a few retail business examples worth exploring:

Coffee shops

Apparel shops (eyewear, sports apparel, undergarments, outerwear)

Restaurants and bars (determine a theme, whether that's the cuisine, small plates, a canteen, etc.)

Game centers (board games, video games, etc.)

Monthly box subscriptions

Pet supply shop

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 2: Write a business plan.

We don’t doubt that you have an amazing idea for a retail store, but an idea alone isn’t enough to turn a dream into a reality. By writing a business plan, you’re providing yourself (and, potentially, future lenders and other stakeholders) a physical roadmap detailing every step you’ll take to open and run your retail business.

Therefore, when you're crafting your business plan for opening a retail store, you can start by answering essential questions about your business model:

What kinds of products are you selling?

Will you open a brick-and-mortar location, an e-commerce website , or will you take an omnichannel selling approach?

Who is your target market, and how will you market to them?

How will you set your store apart from your competition?

You’ll also need to dig into details related to your processes, answering questions such as:

Who are your vendors? How will you store your inventory?

How much staff will you need?

What will your hiring process look like?

What will your startup costs be?

How much money will you need to launch?

How long will it take for you to break even?

How long will it take for you to make a profit?

Keep in mind, however, that your preliminary business plan is exactly that—preliminary. You can always return to your retail store business plan to make changes, updates, and additions as you gain experience with starting and running your business.

Create a business budget

Along the same lines, you should also create a business budget, to the best of your ability, well before you’ve opened your doors. At this stage, you should be paying especially close attention to your startup costs.

Unfortunately, if you're wondering how to start a retail business with no money, you're going to find it's extremely difficult. Although there a variety of ways to cut costs—selling online instead of opting for a physical location, for example—there will always be a handful of costs associated with starting and launching your retail store.

This being said, in addition to standard startup costs like equipment, business insurance, and payroll, if you’re opening a brick-and-mortar retail store, you’ll have to cover some specific costs, like a down payment, potential renovations, and monthly rent and utilities for your store. You’ll also be responsible for purchasing your merchandise, shipping and delivery costs, and storing excess inventory.

And don’t forget about the other tools and software you’ll need to run your business, including a POS system, retail accounting software, and a security system to monitor shoplifting and theft.

Step 3: Register your business.

With your business plan and budget in hand, you can now move onto the next step involved in learning how to start a retail business—making it official.

Come up with a business name

If you haven’t already, you’ll first need to come up with a business name. Choose a name that reflects your business’s purpose and brand identity, allows you room to grow, and, perhaps most importantly, is actually available for use.

Once you’ve landed on your dream business name, run your moniker through a Google search to make sure another entrepreneur isn’t already doing business under that name. Then, check for trademark filings in the U.S. Patent and Trademark Office, and conduct a Secretary of State business search to make sure there isn’t another business in your area with your potential name.

Once you’ve established that your name is free and clear, you'll want to buy your domain name and create social media accounts with your name. That way, you can build a business website and launch your marketing strategy ASAP.

Determine your legal structure and register your business

Next, in order to register your business, you’ll first need to decide on your business’s legal structure. Your business structure determines how you’re taxed, the degree of legal protection you’re afforded, your business’s ownership structure, and your ability to receive business funding (in addition to allowing you to register your business in the first place).

There are lots of business entities to choose from—all of which we overview in detail in our guide to types of business entities. Additionally, we’d highly recommend consulting a business attorney or accountant to guide you through this crucial step.

Once you’ve landed on a business entity type, you can go ahead and register your business through your state’s Secretary of State website. After that, head over to the IRS' website to apply for an EIN (employer identification number) online. Your EIN is a bit like your business’s social security number, and it’ll help the government identify you for tax purposes. You might also need an EIN to apply for a business loan down the line.

Step 4: Obtain licenses, permits, and business insurance.

Some states require a general business license, while others require licenses and permits at an industry level. You may also need to acquire local permits and licenses, so consult your county or city clerk’s website for their particular requirements, too. The SBA is an excellent resource for licensing and permitting information at both the federal and local levels.

For those learning how to start a retail business, you’ll likely need to obtain multiple retail licenses related to your field, including a resale certificate, seller’s permit, and a certificate of occupancy. We also recommend partnering with a trusted business attorney during this step.

Additionally, you won't want to forget about business insurance. As a retailer, you should consider general liability insurance, a business owner’s policy, and business crime insurance; and as an employer, you’re likely required by law to carry workers comp insurance, health insurance, and unemployment insurance for your staff.

Take a look at our guide to small business insurance for more information on the types of coverage you need.

Step 5: Find a physical location and build an online store.

If your retail business will include a physical store, finding the right location is arguably the most important aspect of this process. Your location can make or break the success of your business: If you’re located in a heavily trafficked area, then your marketing efforts are practically built-in. If it’s in a tough-to-find location, or if parking is limited, then your bottom line might suffer.

The right location for your business depends largely upon who your target market is and where they hang out. If you’re opening an upscale boutique, for example, you probably want to choose a neighborhood that skews less toward students and cash-strapped millennials, and more toward people with some discretionary income to burn.

Of course, you’ll also have to keep in mind how much space you need for display areas, a back-office and break room for your staff, dressing rooms, and an inventory storage area. Your location will also depend largely upon how much room you have in your budget for renovations, store design, remodels, updates, a down payment, and your monthly rent and utility bills. That may mean opting for your second or third choice location to protect your budget.

Build an e-commerce store

Even if you always dreamed of a brick-and-mortar store with in-person transactions, we also recommend opening an online store to give your retail business as much exposure as possible.

Luckily, building and managing an online store is incredibly easy with an e-commerce platform. Here are a few recommendations to get you started:

Shopify: This platform provides an infinitely customizable, standalone store that you build and manage entirely on your own.

Squarespace or Wix: These business website platforms are simple to use and offer e-commerce functionalities.

Etsy, Amazon, or eBay: These popular marketplaces will provide you with plenty of built-in traffic and handy seller tools. On the downside, you won’t have as much control over your branding, customer relationships, or fulfillment process as you would with your own e-commerce store.

The combination of e-commerce and in-person retail is sometimes referred to as "bricks and clicks." You can use our guide to learn more about the bricks and clicks business model.

» MORE: How to start an online boutique

Step 6: Establish relationships with vendors and suppliers.

This is the next step to learning how to start a retail business—and beyond your store’s location, arguably one of the most crucial aspects of your potential success—is finding trustworthy vendors and suppliers. Your vendors might become your most valuable partners and a great vendor can present you with new merchandise, determine which products will sell best, and cut costs for you.

There are a few considerations to keep in mind as you’re searching for vendors.

Budget: Your vendors need to work within the supplier budget you’ve established.

Quality: The quality of their merchandise is crucial.

Reputation: You want to work with a supplier who is guaranteed to deliver your agreed-upon items on time and in good condition—every time you place an order.

Customer service: Remember that you’ll be working closely with your vendors, so their service team must be reliable, personable, and easy to contact in case you run into any issues.

We recommend establishing relationships with several vendors. Even if your vendor of choice is stable, reliable, and cost-efficient, you need to have a contingency plan in place—without merchandise to sell, you won’t have a business to run.

Step 7: Hire staff.

If you’ve never hired an employee before, take a look at our guide on how to hire great employees who’ll stick with you for the long run. When hiring for a retail position, make sure to interview as much for their attitude as you are for their experience. While you can train your employees to use your POS system and manage your inventory, you can’t teach them to be kinder, friendlier, or more trustworthy than they innately are.

In advance of hiring your first team member, make sure you understand your state-regulated employer requirements. Your state might require that you buy certain types of insurance for your staff. Additionally, you’ll probably need to complete some other steps, like creating a state withholding account for payroll, reporting new hires, and verifying your potential new hire’s employment eligibility as well.

Step 8: Find the right POS system.

Your POS system just might become your retail business’s best friend. It’ll certainly become your employees’ best friend—assuming you choose an intuitive, easy-to-use model, of which there are tons on the market right now.

A point of sale system combines hardware and software that enables your business to accept and process all kinds of payments. Most POS software is loaded with valuable back-end capabilities, like inventory management, employee management, CRM tools, sales reports, and vendor tracking.

If you’re opening a brick-and-mortar location, you’ll need a POS system that can accept cash, checks, contactless payments, and both chip and swipe cards. In addition, you’ll need a barcode scanner, receipt printer, and cash drawer.

For more flexibility, you might want to look into a POS system that allows on-the-go payments, too. For example, Square (and most other POS systems) has mobile card readers that plug into your phone or tablet so you can accept payments from virtually anywhere, whether that’s at a pop-up shop, craft fair, or trunk show.

Similarly, Clover also has a fully equipped, handheld POS device so you or your staff can ring up your customers from anywhere in your store.

Ultimately, you have options—a lot of them. To help you navigate the selection process, consult our guide on the best retail POS systems.

Step 9: Organize your finances.

As we mentioned earlier, it's nearly impossible to figure out how to start a retail business with no money—so, whether you have a large amount of startup capital or are operating on a tight budget, it's extremely important to organize your finances.

First, you'll want to open a business checking account . If you’re happy with your current bank, you may want to open a business bank account there. It’s logistically easier for you to maintain all your finances with the same institution. In addition, many banks offer discounts and other incentives when consumer clients open business accounts. If you want to compare your options, we recommend looking into our best business bank accounts guide.

Next, you'll want to get a business credit card . Most credit card companies allow business customers to apply for a business credit card online—which makes this step even easier than opening a business bank account.

If your business is too new to have any financial data, you can provide your personal financial information on your application. If you’re approved, you’ll receive your card in the mail in about a week or two. Use it for your business’s smaller, daily expenses, and be mindful of only using it for business-related purchases to maintain personal and business financial separation.

Get funding

Most entrepreneurs need a little (or a lot of) financial help to get their businesses off the ground. That may be especially true of retailers and brick-and-mortar business owners, who have a few extra startup costs to contend with.

Although it can be difficult to get a business loan as a startup, there are a variety of alternative options you can consider, especially as you start to run your retail store and become more established.

Finally, don’t forget to sign up for a good business accounting software solution, which will streamline, automate, and organize your business’s finances.

Step 10: Market your retail business.

At this point, you've learned the most important pieces of how to start a retail business, and now, you're ready to open your doors and get to work.

Of course, to get the word out about your business, you need to develop a small business marketing strategy, which provides you with an opportunity to get a little creative. The best marketing strategies, especially for brick-and-mortar stores, use a combination of SEO, social media, email marketing, paid online marketing strategies (if their budget allows for it), and analog marketing efforts.

At the very start of your venture, your time is best spent building a business website and creating social media accounts. Squarespace and Wix provide users with tons of customizable, professionally designed templates and built-in SEO tools. For social media, focus on creating diverse, high-quality content, posting regularly, and responding promptly to your followers’ comments and DMs—both the positive and the negative.

As a brick-and-mortar store owner, in-person marketing tactics are also important. We recommend:

Getting active in your local retailer community, networking with your fellow business owners, and participating in craft fairs and other events showcasing local businesses.

Partnering up with a local business whose target market is similar to yours and putting on an event together, or hosting pop-up shops or trunk shows in each other’s locations.

Using good sales incentives—like BOGO deals, giveaways, and free trial periods—to draw even more customers into your store.

To boost your marketing strategy, it's important to take some time to develop your brand identity. Establish your messaging, market positioning, and how your unique business can provide your customers with what they’re looking for—then create the materials to reflect those core values.

Start Your Dream Business

The bottom line

As you navigate the business formation steps, be careful not to lose sight of why you’re opening your retail business in the first place. If you remember the passion that inspired you to launch your business, you might even enjoy the finer points involved in the process—who knew finding a POS system could be so fun?

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Our Recommendations

• Best Small Business Loans for 2024
• Businessloans.com Review
• Biz2Credit Review
• SBG Funding Review
• Rapid Finance Review
• 26 Great Business Ideas for Entrepreneurs
• Startup Costs: How Much Cash Will You Need?
• How to Get a Bank Loan for Your Small Business
• Articles of Incorporation: What New Business Owners Should Know
• How to Choose the Best Legal Structure for Your Business

Small Business Resources

• Business Ideas
• Business Plans
• Startup Basics
• Startup Funding
• Franchising
• Success Stories
• Entrepreneurs
• The Best Credit Card Processors of 2024
• Clover Credit Card Processing Review
• Merchant One Review
• Stax Review
• How to Conduct a Market Analysis for Your Business
• Local Marketing Strategies for Success
• Tips for Hiring a Marketing Company
• Benefits of CRM Systems
• 10 Employee Recruitment Strategies for Success
• Sales & Marketing
• Social Media
• Best Business Phone Systems of 2024
• The Best PEOs of 2024
• RingCentral Review
• Nextiva Review
• Ooma Review
• Guide to Developing a Training Program for New Employees
• How Does 401(k) Matching Work for Employers?
• Why You Need to Create a Fantastic Workplace Culture
• 16 Cool Job Perks That Keep Employees Happy
• 7 Project Management Styles
• Women in Business
• Personal Growth
• Best Accounting Software and Invoice Generators of 2024
• Best Payroll Services for 2024
• Best POS Systems for 2024
• Best CRM Software of 2024
• Best Call Centers and Answering Services for Busineses for 2024
• Salesforce vs. HubSpot: Which CRM Is Right for Your Business?
• Rippling vs Gusto: An In-Depth Comparison
• RingCentral vs. Ooma Comparison
• Choosing a Business Phone System: A Buyer’s Guide
• Equipment Leasing: A Guide for Business Owners
• HR Solutions
• Financial Solutions
• Marketing Solutions
• Security Solutions
• Retail Solutions
• SMB Solutions

How to Open a Retail Store

Table of Contents

The convenience and popularity of online shopping is undeniable, but in-store shopping remains an essential part of the consumer experience. In fact, 85 percent of all retail sales come from brick-and-mortar locations. An appealing shop can draw people in and create a memorable experience that leads to sales and builds customer loyalty. 

Whether you’re starting a new venture or looking to expand your online business with a physical location, opening a brick-and-mortar store requires careful planning. We’ve spoken to experts in the industry to find out the steps you need to take to make sure your retail store is a success. 

Steps to open a retail business

1. generate an idea and business plan..

The first step to opening a retail store is developing your idea and a business plan. When determining what type of store you want to open, you should answer each of the following questions:

• What will your business sell?
• Who is your target customer?
• How will you price your products or services?
• Who are the competitors in your industry and local area?
• Who will be on your team?

There are dozens of other questions that need to be answered, but opening a retail store is like starting any other business. You must determine what you want to sell and who makes up your target audience. It’s important to create a retail store that satisfies a need of your customers.  

“Know your competition,” said Juli Lassow, founder and principal of JHL Solutions, a retail business management consulting firm. “No ideas today are fully original. Understand what options your customers have to you and your offering … Once you understand your competition, build out your strategy to compete. Will it be on price? On quality? On service? On variety? Be specific on what your competitive advantage is. Know how to communicate that to your customers through marketing and presentation.”

It’s important to understand your competitive advantage and what makes your business unique. Retail is competitive, and you need to be clear on your plan to find success. Identifying how your business helps your target market is arguably the most important aspect of opening any business.

Other basic factors to consider include business funding and marketing ideas. Will you need to use business loans? [Read related article: Best Business Loans ] Will you take on investors? What types of marketing channels will you use? Does your team need people specifically for social media marketing? What online channels do your customers use?

Once you’ve answered those questions, you should write a business plan that outlines your goals and details how the business will operate. The plan should include marketing possibilities to communicate your unique selling proposition to consumers, and you should consider tech trends and marketing strategies . It should also contain important financial information like funding and the costs of running your business. 

2. Choose a name for your retail store.

In addition to the other basics that go with creating a business plan, take time to find a good business name. When choosing the perfect business name , you should consider a few factors:

• Meaning: There should be some meaning to the name from the customer perspective. That meaning may be developed over time, but you’ll want a brand name that is recognizable to customers.
• Simplicity: Look for names that are relatively short and easy to say. Apple, Google, Facebook and Nike are all major brands that are easy to say. If your brand is a mouthful, it’s probably not the best name for branding purposes.
• Uniqueness: Don’t opt for a name that’s similar to those of your competitors. Look for something original and authentic that encapsulates your business. Try to draw your own inspirations for names without looking at other brands.

The name alone won’t determine the success of your business, so while it shouldn’t be the focus when opening a retail store, you do want to make sure you have a name that fits your brand identity and that customers will remember. 

3. Cover your legal basics. 

Covering your legal basics includes choosing a business structure, following any regulations and obtaining the right licenses and permits.

“If you are opening a retail store for your business, you will need a few common business licenses and permits in order to stay in operation and remain in compliance,” said Deborah Sweeney, CEO of MyCorporation. A few of the basics include:

• A basic business operation license, which allows you to operate your business in the city, county or state you do business out of
• An employer identification number (EIN), which is a federal tax ID that allows you to hire employees to work at your storefront and ensures your business collects payroll taxes
• A seller’s license; this depends on what kinds of items your retail storefront sells; it’s recommended you check in with your state’s government office to determine whether or not you need one.

When it comes to selecting a legal structure , you follow the same process as most businesses. For retailers, however, becoming a sole proprietor can be risky. Taking on a business structure that doesn’t place liability solely on the individual owner is a good way to mitigate your risk, should the business fail.

It’s common for retailers to become corporations or limited liability corporations (LLCs) . Both of those options help limit personal liability. 

4. Get your finances in order.

Once you have a great business idea and a plan to make it happen, you need to start thinking about the financial aspects of opening a store. A physical location means incurring significant overhead costs upfront, so you should start lining up funding right away.

You might consider a small business loan to get things up and running. It’s important to research your options and try to get the best rates possible. Unfortunately, some new businesses won’t qualify for a loan, but there are many other financing options , such as investors, grants and crowdfunding. 

You should also create a list of the fixed and variable costs that may affect your business. It’s easy to brainstorm a potentially successful idea only to forget about hundreds of thousands of dollars in costs. Consider property leasing, equipment purchases, staffing needs and other costs specific to your business when developing your business plan.

5. Find the right location.

If you’re opening a brick-and-mortar business, finding a prime retail space needs to be a focal point. While it can be tempting to try to pick a cheap location and hope your business generates a steady flow of customers through its marketing efforts, sometimes there’s no substitute for being in a busy part of town. Picking a location downtown might be a pricier option, but it could bring in thousands more customers per year.

“First-time retailers need to be wary of trying to save money on rent if they are not a true ‘destination retailer,’” said Bethany Babcock, founder of Foresite Commercial Real Estate. “Poor access or awkward positioning in the center can keep clients away. The retail real estate business is very psychological, and the price [of real estate] is usually one of the last considerations for most retailers.”

When choosing a business location , you want to meet your customers where they are. Find out where your target audience spends their time, and look for a space close by. What might seem like an ideal spot could turn out to be a huge mistake if it’s inconvenient for your customers. 

Don’t forget to keep storage space in mind. If you expect to have a lot of inventory, because you sell a lot of items at affordable prices, you may want additional space. But, if you don’t keep a lot of items in stock, paying for extra square footage would be a waste.

6. Consider a pop-up shop.

If you already own an online retail business and want to expand to a physical store, experimenting with a pop-up shop is a good way to test the waters without shelling out a lot of money. These shops open in temporary locations for a short amount of time. For example, your clothing store may open a pop-up shop at a downtown event or a weekend street market.

Pop-up shops allow your business to move around or offer a physical location to attract new customers. You can gauge important data, like consumer interest and foot traffic, to see whether your online retail shop will translate to a brick-and-mortar location.

A pop-up shop can also support a brick-and-mortar location; opening one from time to time in nearby towns may pique the interest of new customers and convince them to visit your main store. Plus, it is always a good way to generate buzz around your business.

7. Create a personalized experience. 

Finding success in retail often comes from adding value that competitors don’t provide. With the convenience of online shopping, physical stores need to offer a reason for customers to visit. Personalization and a quality in-store experience are important ways to consistently attract customers.

Marco Castelán, senior principal of The Navio Group, a retail business consulting firm, said, “I think the biggest question an entrepreneur needs to ask himself/herself is simple: Can I provide the customer a new experience? It doesn’t matter that you are selling items that can be bought elsewhere. The biggest way to differentiate yourself is by creating a unique experience for the customer, because you are creating value that cannot be replicated.”  

The key is understanding your customers so you can offer them value that they won’t be able to find elsewhere. Personalize the experience in a way that makes them want to spend their money with you and keep coming back. That could mean providing helpful in-store staff, allowing them to try out products or offering free samples. Every decision you make for in-store operations should emphasize creating a unique experience for your customers.

[Are you interested in improving your customer satisfaction? Check out our best CRM software picks .]

8. Build vendor relationships.

Small business owners face challenges, and it’s important to consistently please customers despite those challenges. Building strong relationships with vendors is a good way to prevent issues. You’ll want to find a vendor who not only offers quality merchandise at affordable prices, but is also reliable and fixes issues as they arise.

It’s worth making contact with more than one vendor so that you always have a backup in case something goes wrong. Quickly developing relationships with multiple vendors will set your business up for success. However, this can prove difficult if you’re using overseas vendors.

“The global supply chain is changing rapidly,” said Lassow. “Current trade uncertainty makes it difficult to build global relationships that will provide you with the goods and services you need. If you plan to fully or partially source your products from outside of the U.S., get support. Be sure that part of your operations planning includes partnering with experts in sourcing, logistics, customs and tax.”  

9. Determine staffing needs.

Finding dependable staff is a critical part of your retail store’s success. As you develop your business plan, you should think about the different job roles that need to be filled and how many people you can afford to bring on. Make sure you have all the right state and federal paperwork and remain compliant. 

While finding employees who are qualified on paper is important, you also want to make sure that they are a perfect fit for your brand. Staff can leave stronger impressions than the actual product, so you’ll want to make sure you employ people who make customers feel welcome and engaged. 

The hiring process can be daunting, so if your budget allows it, consider a top HR outsourcing company to help find the perfect team. 

10. Choose business software solutions.

Technology has made taking care of the day-to-day tasks of running a business much easier. But to ensure that your business runs as smoothly as possible, you’ll need to dedicate time to selecting quality small business software solutions. That means determining what your specific needs are and researching the best options. 

Most businesses will need a top POS system to take orders and process payments. Many include hardware and competitive credit card processing rates. You should also consider the best accounting software to help keep your finances in order if you can’t afford an accountant. You might also consider software to help with inventory management, payroll, HR, marketing or customer relationship management. 

Whatever your software needs may be, make sure to test the product out and read all the fine print before signing a contract. You don’t want to be stuck paying more than you can afford for a product that doesn’t support your needs. 

11. Explore marketing opportunities.

Marketing is an important part of building a successful retail store. Although you have a solid product, you need to find a way to make your name stand out so people skip the competition and come through your doors. 

“You risk not standing out in a crowded marketplace,” Lassow said. “Consumers have so many options today to learn about products. They have options in where to shop. They have options for how to buy. Your retail strategy of product and marketing must reach your consumer. It must resonate with them.” 

Invest time in creating an effective marketing plan with a unique message and strategies on how to reach your target customers. That might include email, SMS or direct mail campaigns. You should also work toward building an online presence so more people can find you, whether that’s through Google, your own website or social media platforms. 

[Are you interested in using direct mail to market your store? Check out our small business guide to direct mail .]

Other marketing opportunities may come from sales or in-store discounts. Sales can be a good way to draw customers into your store. For example, offering 30 percent off select items during a holiday weekend may increase foot traffic. Coupons and loyalty programs are another great way to bring people in and keep them coming back.

Regardless of your marketing and sales tactics, it’s important to be creative. Find ways to reach your customers through creative marketing ideas. Running a retail business is a nonstop endeavor, and finding success requires quality marketing campaigns. 

12. Plan for a grand opening. 

If you’re opening a retail store, go big for the grand opening. This doesn’t necessarily mean you need to spend excessively, but you do want to make it an event. Reach out to local news outlets, as media coverage is a good way to get the word out about your business for free. Share a pitch with journalists as to why your store matters and how it fits into the local community.

In addition to securing media coverage, plug your business’s grand opening through social media and other marketing channels weeks in advance. You want to build up excitement so that as many people as possible come. Consider timing as well. Opening a store on a Tuesday at 2 p.m. probably doesn’t make much sense, but opening on a Saturday morning when lots of people are out will help make opening day a hit.

It doesn’t need to be over the top, but your grand opening should be an event you take seriously when trying to win over the local community. You want to start off strong and have a good first few days to get your business into people’s minds and win over customers. 

Smart planning will keep your doors open

Opening a retail store is an exciting endeavor, but it requires careful planning. You should first define your target audience and communicate to them how your product is unique and worth their time and money. Then, you’ll need to find a location where the majority of your customers are likely to visit. After that, the rest is up to you. As long as you keep providing excellent, personalized customer experiences, your business will surely keep its doors open for years to come. 

Bennett Conlin contributed to this article. Source interviews were conducted for a previous version of this article.

Building Better Businesses

Insights on business strategy and culture, right to your inbox. Part of the business.com network.

Everything You Need to Know to Start a Retail Business

Learn about what it takes to build and grow a retail business from the ground up.

FREE BUSINESS PLAN TEMPLATE

The Essential Guide and Checklist For Starting Your Business

Updated: 02/19/19

Published: 02/18/19

I worked in three different retail stores while growing up. The most memorable experience I had was working at a clothing store on Cape Cod when I was 18. The store had been recently renovated and looked beautiful — the desk with the cash register was designed to look like it was built from parts of a large fishing boat and the nautical theme continued to the inventory, floors, and gift boxes.

The store manager was also incredible — she was meticulous, caring, a natural problem solver, highly organized, and knew our products inside and out. She trained all employees to ensure we were prepared to assist any customer who entered the store in a way that was helpful and on-brand. My experience working at this store was a prime example of everything a retail business should be.

From your store’s appearance to inventory to the manager you hire, there are a multitude of factors that impact the creation of a prosperous retail business Follow along and we’ll cover the steps you should take to start your retail business, the resources and tools you’ll need to manage your store, and how to find the right employees to work in your store. 

But first, a critical question.

What Is a Retail Business?

How to Start a Retail Business

Retail Marketing Strategy

Resources and Software

Retail Employee Candidates

Retail businesses sell items or services to customers for their consumption, use, or pleasure. They typically sell items and services in-store but some items may be sold online or over the phone and then shipped to the customer. Examples of retail businesses include clothing, drug, grocery, and convenience stores.

Now that you understand what type of store falls under the definition of a retail business, you might be wondering how to actually go about starting one. Let’s review 11 steps that are critical when beginning your retail business.

How To Start a Retail Business In 11 Steps

• Create a Business Plan
• Choose Your Legal Structure
• Name Your Business
• File for an Employer Identification Number
• Understand Other Retail Business Laws
• Pick a Location and Make Your Store Attractive
• Find Your Inventory
• Create Store Policies and Procedures
• Develop a Customer Service Plan
• Recruit a Team of Employees
• Host a Grand Opening

Each of these 11 steps should be thoughtfully considered and completed when building your retail business as some are actually federal and state legal obligations. Also, these steps aren’t listed in any specific order so feel free to jump around and work through them in any way that makes sense to you.

1. Create a Business Plan

One of the first things anyone looking to start a business should do is create a business pla n . This is the document that details all aspects of your company including what you’ll sell, how your business will be structured, who your target audience is, and your financial information. 

Creating a business plan is crucial because it provides you (and your partners) with a comprehensive overview of your business at once making it easy for you to determine what will or will not work and what needs to be modified. Your business plan should be concise, yet informative and detailed. It’s also important to remember this is a living document , meaning you can always make changes as you start to implement different aspects of your plan.

Discover how to create a business plan to help you kickstart your company .

2. Choose Your Legal Structure

Disclaimer : This post is not legal advice for your company to use when choosing your legal structure or building your retail business. Instead, it provides background information to help you better understand these processes. This legal information is not the same as legal advice, where an attorney applies the law to your specific circumstances, so we insist that you consult an attorney if you’d like advice on your interpretation of this information or its accuracy. In a nutshell, you may not rely on any of this piece as legal advice, or as a recommendation of any particular legal understanding.  

When starting a retail business, you’ll have to choose a legal structure . Legal structures are recognized by the Internal Revenue Service (IRS) and determine which income tax forms you have to complete and submit for your business. Here are five common business legal structures for your consideration:

• Sole Proprietorship
• Corporation (C Corp)
• S Corporation (S Corp)
• Partnership (LP and LLP)
• Limited Liability Corporation (LLC)

Learn how to choose the right legal structure for your new business .

3. Name Your Business

Your business’ name should be catchy, easy to say and repeat, unique, and convey meaning. This way you know it’ll resonate with your customers and be memorable.

You should also search the web to ensure it hasn’t been used. To double check your name hasn’t already been taken, you can search for a trademark through the United States Patent and Trademark Office (USPTO) database. If you are beginning a C Corp or an LLC, you’ll need to visit your Secretary of State’s website to ensure your business entity’s name hasn’t already been used. (Here’s what the Massachusetts Secretary of State website looks like for reference.)

4. File for an Employer Identification Number

You’re most likely going to need to file for something called an Employer Identification Number (EIN), also known as a Federal Tax Identification Number, when you start your business. This is an identifier almost every business in the US and US territories — provided by the IRS — must obtain. Your EIN is what your business will use to report income tax activity.

You can check with your state to make sure you need an EIN as well as review the IRS EIN checklist to make sure you qualify. Once you’ve done that, you’re ready to apply for your employer identification number .

5. Understand Other Retail Business Laws

One final legal step for you to complete to set up your business — understand all other retail business laws at both the state and federal levels. We’ve covered a lot of the tax information you’ll need to be aware of, how to legally name and trademark your business, and how to file for an EIN. But you’ll also want to make sure you have all other legal matters taken care of before opening up your retail business. 

Every state’s government website should have a section that reads something like “starting a business”, similar to this one from the Massachusetts government site . Here, you’ll be able to work through a checklist of items to make sure everything you’re doing is legal. You’ll also be able to acquire any other necessary retail business papers and permits . In terms of government laws related to your business you should have a general understanding of tax, employment, and labor, antitrust, advertising, environmental, and licensing laws among other retail laws . 

Our recommendation to you is hire a lawyer or consultant to help you throughout this process — or at least get you started. The last thing you want to do is go through the effort or starting your retail business and then find yourself in legal trouble. A lawyer or consultant can ensure you consider and understand all retail business laws and requirements. 

Now, it’s time to get out of the legal mindset and move onto some more creative aspects of your retail business.

6. Pick a Location and Make Your Store Attractive

Your store’s location and appearance matter. This is how you’re going to make sure you have the foot traffic and visibility you need to kickstart and maintain a high volume of customers. It’s also how you’ll attract customers and make them want to enter your store.

Retail Store Location

If you decide to go with commercial space for your retail business — which is a building intended for stores or companies to conduct business and make a profit — make sure your location is a good one by chatting with other businesses next door and nearby. You can even conduct an informal foot traffic study by hanging out in the area to observe the number of people who shop there as well as the type of clientele to determine whether or not it resembles that of your buyer personas .

When looking at commercial spaces, you should also think about whether or not you want to rent/ lease the space and work with a landlord or buy the space so you have full control. 

Learn how to create buyer personas for your business to enhance your marketing strategy .  

You might decide to conduct your retail business out your of your home rather than a commercial space. While this will save you a lot of money because you won’t be putting any towards a separate building or retail space, it might feel slightly less professional to your customers. It may also be harder to bring in foot traffic depending on the location of your home. 

No matter what type of retail location you choose, be sure to look into your city’s zoning and planning details. These are typically provided by every town’s zoning commission and tell you whether or not changes to the area, such as construction or traffic, will create any problems or limitations for your store.

Retail Store Appearance

From the way your inventory is presented to your choice in cashier counter to your window displays , everything your customers see and experience should feel and look professional, clean, and beautiful. This way customers want to enter your store and feel excited to do business with you. 

You can make your store look great and feel inviting by using visual merchandising techniques to help you design it in a way that’s well-organized, well-lit, and on-brand. You can also hire a consultant to come in and help you lay out your store in a way that’s visually appealing.

Additionally, you can incorporate modern technology into your store to enhance the customer experience. For instance, you can  create a QR code  that customers can scan to access exclusive promotions or information about your products, adding an interactive element to their visit.

7. Find Your Inventory

Finding the right inventory to sell is crucial. You need to give your customers a reason to come to your store by providing them with unique items they’d have a hard time finding anywhere else — especially since online shopping is so common today due to its convenience. To help get you started, you can search for one of a kind items and unique pieces at fairs, trade shows, and festivals . 

Here are a couple more things to think about when trying to determine how you’ll source your business’ inventory :

Current Trends

Keep up with current trends within your retail niche (clothing, jewelry, accessories, etc.) to determine the type of inventory you should sell. With the help of social media, retail blogs , and magazines, and by simply learning about what’s doing well in other retail stores similar to yours, you’ll be able to determine the ideal inventory for your brand and buyer personas. These resources will ensure there’s a base of customers looking for the type of inventory you’re going to be selling.

Consider the type of supplier you want to get your inventory from — this might be through a manufacturer, individual maker, or wholesale.

• Manufacturer
• Individual Maker

Working with a manufacturer gives you a lot of flexibility because they help you create products that don’t already exist. Although you can determine the design, quality, and look of the product you crate, this also means working with a manufacturer can become expensive and time-consuming. 

Individual makers are people who create unique pieces of inventory themselves. An example of this would be someone in town who makes knit scarves and hats and sells them to you to then sell in your store. This is a great way to ensure your store has one of a kind pieces. It also means you’ll have to take the time to find talented makers who create quality items that are on-brand and would appeal to your buyer personas. 

Using wholesalers is a great option if you want to sell products in your store that are already being sold by other stores and online retailers. You’ll receive wholesale items directly from the company that makes them for a lower price but you’ll have less say when it comes to your selling margins, as the wholesaler will have control over them. It can be hard to find trustworthy wholesalers at first, so you might try wholesale-specific marketplaces like Faire to discover brands and then order from them regularly.

8. Create Store Policies and Procedures

Creating store policies and procedures for your customers and employees is critical if you want to maintain a sense of order within your retail business. Policies and procedures between your business and customers may include things like your return and exchange policies or whether not you want to allow pets in your store. Policies and procedures between your business and employees may include things like dress code and scheduling expectations.

By creating these store policies and procedures you avoid making customers and employees feel confused about the way something works within your business or at your store. This also helps you set standards for the way you want people to interact with your business on a regular basis.

9. Develop a Customer Service Plan

When starting your retail business, you’ll want to think about how you’re going to develop a customer service plan. Customer service is how you help your customers solve problems, teach them how to use your products, and answer their questions. Your customer service plan details the ways you’re going to do this. Customer service work is proactive . Meaning the point of developing a customer service plan and related policies is to solve for your customer’s problem prior to them even realizing they have an issue.

Let’s cover a few ways you can implement a customer service plan for your retail business through customer-friendly policies, employee training, and customer-loyalty programs.

Customer-Friendly Policies

By creating customer-friendly policies, you’ll make shopping at your retail store simple and stress-free for your customers. For example, you can can create return policies that allow your customers to bring an item back for a full refund with or without a receipt.

Other policies that prevent pain points and enhance customer service include a 100% satisfaction guarantee or complimentary hemming when you buy a piece of clothing in store.

Employee Training

You should train your employees about how to handle different situations with your customers such as exchanges, complaints, and refunds. Training will provide your employees with the exact steps they should take to ensure a professional interaction with your customers that resolves the issue at hand.

Your customer service training should also cover how you expect your employees to deal with larger customer issues and disputes. Provide them with a way to escalate an issue to you — or your store manager — when they’re unable to reach a resolution that satisfies your customer on their own.

Customer Loyalty Program

By proactively providing an incentive for people to return to your store with a customer loyalty program , you’ll likely increase your sales and number of promoters (the people who tell their network about your business). You also enhance their experience doing business with your business as well because you’ll be providing them with discount codes, details about sales, information about your latest products, and any other exciting event or piece of news you have to share.

10. Recruit a Team of Employees

It’d be difficult to grow your retail business without bringing on some team members. You may start as your sole employee, but as your business flourishes you’ll likely need some assistance. You can determine the most important qualities you’re going to look for in candidates, whether they’re related to personality, prior retail experience, or culture-fit. Then you can select and tailor specific retail interview questions to help you narrow down your pool of candidates. (We’ll cover more details about which skills you should look for in your candidates shortly.)

11. Host a Grand Opening

You might choose to have a grand opening for your retail store. This marks the date in which you are officially open for business. Grand openings may include celebratory beverages, food, and sale items to excite your new customers.

Prior to your grand opening, you might also have a soft launch, or soft opening, for your business. Soft launches are when you, the business owner, invite a group of guests to your store to essentially test everything out. These events are a great way to make sure everything works perfectly before your grand opening — meaning this is your last chance to ensure your customers love your inventory, your store is appealing to your guests, and your everything in your store, such as your POS system, functions perfectly. 

You’ve officially worked through all 11 steps required to build your own retail business — congrats! Now, you’ll need to create your retail marketing strategy.

How to Create a Retail Marketing Strategy

• Define your positioning
• Define your audience
• Create your mission statement
• Decide on your branding
• Think about your content marketing strategy
• Decide on your budget

Every retail business should have a retail marketing strategy — this will serve as the marketing plan you’ll use to promote your business. It’ll be the way you get the word out about your business and help you build your base of customers and promoters. Here are six steps to work through when creating your retail marketing strategy .

1. Define your positioning.

Defining your positioning is a critical part of your marketing strategy. That’s because your positioning is what makes your retail business stand out and differ from your competitors. Think about what it is that makes your business unique and use those details to define your positioning. This might be where or how you source your inventory, how you display all of the items in your store, or your impeccable end to end customer service experience.

2. Define your audience.

Once you define your positioning, you should be able to get a better idea of the audience you’re going after. Think about what type of consumer would appreciate your positioning, the products you sell, and how you sell them. By clearly defining your audience, you’ll be able to create buyer personas to help you develop a steady customer base and understand their wants and needs. 

Learn how to create buyer personas for your business with easy to use templates .

3. Create your mission statement.

Your mission statement is another critical part of both your retail marketing strategy and your business as a whole. It’s a formally written statement explaining your business’ goals and values — it essentially explains the reason why your business exists, the purpose it serves its audience, and how it differs from competitors. Your mission statement is what you and your employees can turn to when you need guidance or inspiration, and it’s what your customers can turn to when they want to learn about who you really are as a business and brand. And if you need some help envisioning what yours should say, you can always review mission statement examples from other companies. 

Naturally, as your company evolves and grows, the details of your mission statement may also shift. That’s alright because your mission statement is a living document, meaning it can (and should) be updated over time as you see fit.

4. Decide on your branding.

Your retail business’ branding should feel like a combination of your audience and mission statement. Meaning you should think about what type of branding your chosen audience will respond well to and how it’ll help you represent and depict your company’s goals and values. 

You should study the branding of your competitors to ensure yours stands out and looks unique to your customers. Lastly, make sure your branding is memorable — you want someone to look at any piece of your marketing and know it’s yours.

5. Think about your content marketing strategy.

A great retail marketing strategy includes a content marketing plan . This consists of media you create for your retail business such as written and visual content. A comprehensive content marketing strategy will help you establish a strong online presence and promote your business . 

For example, a common way to establish an online presence through content marketing is via social media. Social media marketing allows you to promote your business through various platforms such as Instagram and Facebook . Once you determine the different aspects of your content marketing strategy, you’ll want to ensure you plan and schedule all of that great content you’ve just created.

Content marketing schedule

Once you have developed your content marketing strategy, you’ll need to make sure the actual content you’ve created is posted, distributed, and shared when you want it to be. Create a content marketing schedule that you and your team can work from to ensure all content is shared as planned.

There are a number of different content marketing scheduling software options, such as CoSchedule , to help you do this. Depending on your business’ needs, you may also choose to use a much broader marketing automation software such as HubSpot , or a more specific social media automation software such as Hootsuite . These software options speed up the scheduling process, ensure your content is shared on time and as planned, and allow you to dedicate employees to certain content.

6. Decide on your budget.

You’ll need to set a marketing strategy budget to work within when developing all of these different pieces to your plan. Think about how much money you want to put towards each of these steps so everyone on your team is aware of the parameters they’ll need to work within. 

When determining your budget, you might find that you’re a bit limited to the amount you can put towards each of these retail marketing strategy steps simply because you’re a new business with fewer resources. That’s alright and totally expected — just remember to expand your budget when necessary as your business grows. 

To help get you started, you can consider the following recommendation regarding marketing strategy budgets by the US Small Business Administration : If you’re doing less than $5 million a year in sales and your net profit range is 10-12%, spend 7-8% of your gross revenue for marketing and advertising. 

Now that you’ve worked through the steps to building your retail business from the ground up and have a better understanding about how you can approach the creation of your retail marketing plan, let’s discuss some of the resources and software you’ll need to run your retail business.

Resources and Software Every Retail Business Needs

The following six resources and software are tools often used by retail businesses. As you start planning your business, you may think of more tools you’ll need depending on the retail business you’re opening. The following list will get you started most likely need to be modified for your store needs.

1. POS System

One of the most important tools you’ll need to run your retail business is a point of sales system or POS. 

A point of sales system is a software that allows you to conduct customer checkouts and accept multiple forms of payment such as cash, credit cards, and mobile payments. The software also prints receipts, scans inventory barcodes, and stores cash. There are a number of retail-focused point of sales systems to choose from to help you manage all of your customer transactions which we’ll discuss shortly. Without a POS system, it would be exceptionally time-consuming and difficult to keep track of all of your sales and payments.

Here are some POS systems for retail businesses to help kickstart your search for the perfect one for your business: 

• Square Point of Sale

You may also want an inventory management software for your retail business. This will keep track of all information about your inventory to understand which items you need to replenish and how often you need to do so. These days, many POS systems, including the five we just listed, have inventory management systems built into them so you may not need to worry about finding another software.

2. Stock Keeping Units

Typically, retail businesses will have some type of stock keeping unit, or SKU, system to keep track of every single piece of inventory they have. A SKU — which is typically located alongside an item’s barcode — is a combination of numbers and letters used to identify and organize each piece of your inventory by characteristics such as size, color, and brand. 

Instead of having to come up with your own SKU, POS systems with included inventory management capabilities also have SKU creation features.

4. Retail Blogs

Every business owner needs inspiration every now and then. Retail blogs are a great way for you to keep up with the latest retail trends and learn about what is and isn’t working well for other similar businesses. Retail blogs, such as The Retail Doctor and Medallion Retail , are focused on topics including growth, industry trends, new software, and in-store business vs. online business.

6. Employee Scheduling Software

As your retail business grows, you’ll most likely find yourself adding members to your team. Managing any number employees — and their schedules — is simple with an employee scheduling software , such as Ximble or TSheets , which allows you to organize and update your business schedule so your employees know exactly when to show up for work. 

Now that you have a better understanding about the resources and tools you’ll need to start your retail business, let’s talk about how you’re going to find the right employees to work in your store.

What to Look For In a Retail Employee Candidate

Who are the people that are going to help you grow your business? What traits should your employees possess to ensure they’ll be impactful additions to your store? Let’s cover some of these important characteristics to help you identify candidates who will be quality employees.

Communication Skills

Retail employees need to be great communicators — they’re interacting with your customers every day. They must be able to communicate details about your inventory to help them find the items they’re looking for. If someone calls your business with a question or issue, they’ll need to communicate their answer or provide a solution. Lastly, your employees need to be able to communicate with you about things such as their schedule and how their experiences with your customers are going.

Positive Personality

Whether your employees are chatting with your customers in person or online, about a topic that’s good or bad, your employees need to maintain a positive attitude. They act as the face of your brand and you want them to represent your business well. So, hiring people with a positive, can-do attitude that’s ready to tackle any situation that may arise — even if it’s a complex and involves an unhappy customer — is important.

You’re bound to have an unsatisfied customer at one point in time. Your employees must be patient as they listen to the issue in which the customer describes. They also need to be patient while working with that customer to find a solution. Otherwise, it’d be difficult for your employees to turn your customer’s negative experience around.

Empathy is feeling and understanding another’s emotions. Whether a customer is in a rush, has to purchase a sympathy gift, or is unhappy with an item of yours, your employees must be empathetic. This is how they’ll find a solution that fits the needs of the given customer. Empathy is what will help turn a customer’s negative experience into a positive one so they’ll continue doing business with you in the future.

Dependability

Whether you have one employee or 10, they need to be dependable. You depend on your employees to represent your business, work hard to delight your customers, be professional and kind, and simply show up to work (on time, of course) when scheduled.

Prior Retail Experience

Requiring your employees to have prior retail experience is up to your discretion. You may choose to focus on personality traits and culture fit instead of work history. However, if you do want employees with prior experience, you could look for candidates who have worked in other stores before or even have an education in fashion, design, or communications.

Start Selling

Starting a retail business is hard work. But, by following the steps we discussed, you can make it happen. Remember there are a lot of moving parts that come with starting a retail business that may change, such as your business plan and mission statement, as you begin putting your ideas into action. Start by obtaining the right resources and tools and hiring the right people to help you start growing your retail business.

Don't forget to share this post!

Related articles.

A Beginner's Guide to POS Systems (& the Best Ones for 2023)

5 Pro Tips for Creating a Window Display That Sells [+ Examples]

5 Strategies for Selling Your Products at Fairs, Trade Shows, & Festivals

8 of the Best Retail Blogs Every Retailer Should Be Reading

7 Innovative Ways Retailers Are Using Beacon Technology

The 5 Best Retail Interview Questions and Answers

5 Retail Trends That Will Transform the Industry in 2020

6 Visual Merchandising Examples That Drive Sales

What Is a Product SKU? A 2-Minute Rundown for Retailers

2 Essential Templates For Starting Your Business

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

• Get Started

Home >> #realtalk Blog >> Manage a business >> How to create a reta…

How to create a retail store business plan

By Homebase Team

A successful retail business starts with a well-thought-out retail business plan. While you may think you have your business ideas all figured out in your head, putting them down on paper in the form of a business plan is crucial for several reasons. 

In this post, we’ll explore what a retail business plan is, why it’s different from other business plans, what to include in it, common mistakes to avoid, and how to make your plan stand out.

What Is a Retail store business plan and why do you need one?

A retail store business plan is a comprehensive document that outlines your business model, identifies your target customers, and lays out a roadmap for turning your retail store or online shop into a profitable business. 

It’s a planning and forecasting tool that provides clarity and direction for your business. With a good business plan, you’re more likely to achieve success. 

Here’s why having a retail store business plan is essential:

Planning and forecasting

A retail store business plan helps you plan and set clear goals for your business’s short-term and long-term success.

Planning helps you set goals, allocate resources wisely, and stay on track. It ensures that day-to-day operations run smoothly. Forecasting, on the other hand, helps businesses anticipate future trends and challenges, allowing them to make informed decisions and adapt to changing circumstances. 

Together, planning and forecasting help you avoid costly mistakes, reduce labor costs , seize opportunities, and achieve both short-term and long-term objectives. In essence, they’re like a GPS for your retail business, guiding it towards profitability and sustainability.

Securing investment

A retail store business plan helps secure investment by demonstrating a clear and well-thought-out strategy. It shows potential investors that you’ve done your homework, understand your market, and have a solid plan for success. 

The plan outlines your business goals, target market, competitive analysis, and financial projections, instilling confidence in investors that their money will be used wisely. It also highlights your commitment and professionalism, making you a more attractive investment opportunity. 

Essentially, a strong retail business plan reassures investors that your venture is a sound investment with a higher likelihood of delivering returns on their capital.

Guiding business operations

A retail store business plan serves as a roadmap for guiding business operations. It outlines your business’s goals, strategies, and tactics, providing a clear direction for daily activities. 

It helps you make informed decisions about product offerings, retail staff scheduling , pricing, local business marketing , online marketing and staffing. The plan also includes financial projections and budgeting, ensuring you manage resources effectively. 

Regularly reviewing the plan allows you to track progress, identify areas needing improvement, and adjust strategies accordingly. Overall, it keeps the business focused, organized, and aligned with its objectives, making day-to-day operations more efficient and effective in achieving long-term success.

Get your team in sync with our easy-to-use, all-in-one employee app.

How is a retail business plan different from other business plans?

Retail businesses are unique in many ways, and your business plan should reflect that. Unlike other businesses, retail operations involve factors such as inventory management , supply chains, order fulfillment, deliveries, and customer returns. 

Here’s how a retail store business plan differs:

Inventory management

Unlike other business plans, retail plans must handle challenges like seasonal sales variations and predicting what customers will buy. Inventory management in retail business plans is about keeping the right amount of products in stock to meet customer demand while avoiding excess or shortages. 

They also need to explain how they get products, where they store them, and how they restock when items run low. In contrast, many other businesses don’t deal with these inventory issues.

Retail store business plans focus more on handling and controlling inventory to make sure they always have what customers want and don’t waste money on too much stock.

Marketing strategy

Marketing strategy in retail store business plans, compared to other business plans, often emphasizes attracting customers to physical or online stores, creating appealing displays, and running promotions like sales or loyalty programs. 

Retail plans typically prioritize reaching a broad consumer base and enticing them with visually appealing products. In contrast, other business plans might focus on more specialized marketing, like B2B partnerships or online advertising. 

Retailers also consider factors like store location and layout, which are less significant for many other businesses. So, simply put, retail business plans concentrate on tactics to draw in shoppers and make their shopping experience enjoyable and memorable.

Growth strategy

Growth strategy in retail store business plans, unlike other business plans, often centers on expanding to new locations, introducing new product lines, or attracting more customers. Retailers aim to increase sales by opening additional stores, going online, or diversifying their offerings. 

In contrast, some businesses may focus on improving internal processes or targeting specific niche markets. 

Retailers typically rely on broadening their reach to fuel growth, making strategies like franchising, adding new store branches, or exploring e-commerce crucial components of their plans. So, in simpler terms, retail business plans tend to emphasize expanding the business footprint and customer base as a primary path to success.

What to do before you start writing your retail store business plan

Research your market.

T horough market research is essential. Investors look for evidence of a healthy market and an unmet need that your business can address.

You’ll want to gather data on who your customers are, what they want, and where they’re located. Analyze your competition to see what makes your business unique. This research helps investors see that there’s a demand for your products or services and that your business can thrive in the market. 

It’s about proving that your idea is well-informed and has the potential to succeed. So, in simple terms, thorough market research shows investors that your business plan is based on a strong foundation of knowledge and understanding.

Understand your competitors

 Know your competition inside out. Understanding what sets you apart is crucial.

You need to know who you’re up against and what makes them tick. Research your competitors thoroughly: their strengths, weaknesses, and strategies. Identify what sets your business apart – your unique selling points. 

Investors want to see that you’ve done your homework and can explain how your retail store will outshine the competition. Maybe it’s better prices, superior quality, or outstanding customer service. 

This knowledge not only helps you stand out but also shows investors that you’re ready to face the competition head-on, which can boost their confidence in your business’s potential success.

Have a growth strategy

Define a clear growth strategy to demonstrate how your business will expand once it’s up and running. It shows investors that you’re not just focused on starting your business but also on making it grow in the long run. 

You can outline different growth strategies like market penetration (selling more to existing customers), product development (creating new products for existing customers), market development (selling existing products to new markets), or diversification (introducing new products to new markets). 

This helps investors understand your vision and how you plan to increase your business’s value over time, making your retail venture a more attractive investment opportunity.

What to Include in your retail store business plan

Business overview.

Provide a high-level description of your retail business, including your company’s structure, location, and the products or services you’ll offer.

Business goals

Explain your business goals, whether they’re related to market share, product ranges, or online expansion.

It should give a clear, simple picture of your retail business. Explain whether your business will operate in a physical store, online, or both. 

Mention the legal name of your company, where it’s located, and briefly describe the products or services you plan to sell. Keep it straightforward and easy to understand, so anyone reading your plan can quickly grasp what your retail business is all about. 

This section sets the stage for the rest of your plan, helping readers get a sense of your business from the get-go.

Your industry experience

In the “Your industry experience” section of your retail store business plan, it’s your time to shine. Tell the readers about your background and expertise, especially if you’ve held important positions in recognized retail businesses. 

If you’ve previously led successful growth initiatives or managed to open new stores that flourished, this is the place to mention it. Basically, this section is all about showcasing your qualifications and experience in the retail world.

It helps build trust and confidence that you’re the right person to turn your retail business idea into a thriving reality. Keep it concise but impressive.

The “ Marketing strategy ” section of your retail store business plan is where you paint a picture of how you’ll present your store to the world. Explain your store’s image, the strategy for your brand, and how you plan to market your products or services. 

Don’t forget to dive into the 4Ps of retail marketing:

• Product : Describe what you’re selling and what makes it special.
• Pricing : Explain how you’ll price your products and why.
• Place : Tell where you’ll sell your products, be it online, in-store, or both.
• Promotion : Detail your strategies for promoting your store and products.

This section gives a clear roadmap for how you’ll attract customers and make your business a success. Keep it straightforward and compelling.

Financial strategy and forecast

The “Financial strategy and forecast” section of your retail store business plan is where you show the money side of your business. Investors want to see the numbers, so include things like:

• Estimated capital requirements : How much money do you need to get started and keep going?
• Profit and revenue models : Explain how you plan to make money and what your sales goals are.
• Sales volume projections : Predict how many products you expect to sell.
• Financial statements : Include balance sheets, cash flow projections, and any other financial documents.

These details help investors understand your business’s financial health and potential. Make sure your numbers are realistic and based on careful research and planning.

Management structure

In the “Management structure” section of your retail store business plan, you’ll provide details on how you intend to organize your team and manage your business effectively. This section involves explaining several key aspects:

Firstly, you’ll specify the number of team members you plan to hire. This is essential to understand the size and scope of your workforce.

Secondly, you’ll describe the roles and responsibilities of each team member. This clarification ensures that everyone knows their specific duties and contributes to the smooth operation of the business.

Lastly, you’ll illustrate how each team member fits into your overall business plan. This section helps investors and stakeholders comprehend how your team will collaborate and work together to achieve the business’s goals and objectives. 

A well-defined retail management structure assures potential investors that you have a competent team ready to execute your business plan effectively.

Homebase offers user-friendly employee management tools to streamline team communication , time tracking, and scheduling , helping you refine your management structure. 

Common mistakes to avoid when making your retail store business plan 

A successful business plan is as much about what you leave out as what you put in. Here are some common mistakes to avoid:

Too much detail

Avoid long, rambling text. Use visuals and graphics when possible and attach heavy content as appendices.

Poor financial planning

Account for growing expenses, taxes, and market influences in your financial projections.

Poor spelling and grammar

Basic errors can undermine how partners and investors view your plan.

Strengthening your business plan

To strengthen your business plan, consider your audience, which may include potential investors, business partners, and financial institutions. Be transparent, avoid exaggerations, and demonstrate the value of your idea.

Conclusion: Finishing your retail store business plan

A well-crafted retail store business plan is more than just a guide; it’s a tool to attract investors, secure funding, and set the foundation for a successful retail business. Leveraging tools like Homebase can help you stay competitive and efficient in the retail industry.

Don’t delay writing your plan—it could be the first step towards realizing your retail business dreams.

FAQs about writing a retail store business plan

What is a retail store business plan, and why is it important.

A retail store business plan is a comprehensive document outlining your retail store business’s model, goals, and strategies. It’s crucial as it provides clarity, attracts investors, and guides daily operations for success.

How does a retail store business plan differ from other business plans?

Retail store business plans are unique due to their focus on inventory management, marketing tactics to attract shoppers, and growth strategies centered on expanding customer reach.

What should I include in my retail store business plan’s business overview section?

In the business overview, provide a concise description of your retail business, including its structure, location, and the products or services you intend to offer.

How can a retail store business plan help secure investment?

A retail store business plan demonstrates a well-thought-out strategy, outlining business goals, target market, competitive analysis, and financial projections. It reassures investors, making your venture a more appealing investment opportunity.

What common mistakes should I avoid when creating a retail store  business plan?

Common mistakes include excessive detail, poor financial planning, and grammar/spelling errors. To avoid these, focus on clarity, accurate financial projections, and proofreading.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

Related posts

May 14, 2024

8 best free time clock apps for employee time tracking

It’s hard to know where to start when looking for the best free time clock app for your small business….

10 Best Square Alternatives for 2024

Square is a popular software solution for small businesses in the retail, hospitality, and restaurant industries. You can use the…

Travel Time Pay for Hourly Employees (2024 Update)

When it comes to travel time pay for hourly employees, things can get confusing for both employers and employees. If…

Bar Management 101: How to Manage a Bar in 2024

If you manage a bar business, you know how important successful bar management is — and just how difficult it…

Time Theft: What it is, Impact on Business, & Prevention

As the saying goes, time is money. That means that time theft is something no business owner ever wants to…

12 Proven Strategies For Finding New Employees for Your Business

Your business is growing, your customer base is expanding, and the time has come to expand your small business team….

Subscribe to our newsletter

Looking for ways to stay up to date on employment laws and small business news?

Homebase makes managing hourly work easier for over 100,000 local businesses. With free employee scheduling , time tracking , and team communication , managers and employees can spend less time on paperwork and more time on growing their business.

• Hiring & onboarding
• Team communication
• Employee happiness
• HR & compliance
• Integrations
• Food & beverage
• Beauty & wellness
• Medical & veterinary
• Home & repair
• Hospitality & leisure
• Education & caregiving
• Contact sales
• Become a Partner
• Careers – We’re hiring!
• #realtalk Blog

Upmetrics AI Assistant: Simplifying Business Planning through AI-Powered Insights. Learn How

• AI ASSISTANTS

Upmetrics AI Your go-to AI-powered business assistant

AI Writing Assist Write, translate, and refine your text with AI

AI Financial Assist Automated forecasts and AI recommendations

• TOP FEATURES

AI Business Plan Generator Create business plans faster with AI

Financial Forecasting Make accurate financial forecasts faster

Strategic Planning Develop actionable strategic plans on-the-go

AI Pitch Deck Generator Use AI to generate your investor deck

See how it works  →

AI-powered business planning software

Very useful business plan software connected to AI. Saved a lot of time, money and energy. Their team is highly skilled and always here to help.

- Julien López

• BY USE CASE

Starting & Launching a Business Plan your business for launch and success

Validate Your Business Idea Discover the potential of your business idea

Secure Funding, Loans, Grants Create plans that get you funded

Business Consultant & Advisors Plan seamlessly with your team members and clients

Business Schools & Educators Simplify business plan education for students

Students & Learners Your e-tutor for business planning

• Sample Plans
• WHY UPMETRICS?

Reviews See why customers love Upmetrics

Customer Success Stories Read our customer success stories

Blogs Latest business planning tips and strategies

Strategic Planning Templates Ready-to-use strategic plan templates

Business Plan Course A step-by-step business planning course

Ebooks & Guides A free resource hub on business planning

Business Tools Free business tools to help you grow

• Sample Business Plans
• Retail, Consumers & E-commerce

Retail Store Business Plan

Retail store is a competitive business as competition is intense in this segment. Moreover, many big giants are investing more in e-commerce and digital marketing, making this business even tougher day by day.

Having a physical retail store that offers a shopping experience along with products is a dream for many. It is not only because of the size of a business but the potential and opportunities such a business offers.

And if you are an individual who likes to interact with people, constantly improve your way of doing business, and form communities that work towards something, then you might have thought of having your retail store business.

Now, a retail store has great potential for success, but it is also a very competitive business. You’ll need a retail store business plan to help you stand apart from your competition and have a thriving business.

Industry Overview

Research suggests total retail sales in the United States were projected to amount to 6.03 trillion U.S. dollars in 2022, up from around 5.4 trillion U.S. dollars in 2018, according to the National Retail Federation .

Retail businesses come in many forms such as grocery stores, restaurants, and bookstores. There are around 4 million retail businesses in the United States alone.

The domestic retail market in the United States is very competitive, with many companies recording strong retail sales. Walmart, a retail chain giving low prices and a wide selection of products, is the front-runner in the United States. Amazon, The Kroger Co., Costco, and Target are a selection of other notable U.S. retailers.

Now, to have any genuine hope of getting noticed in such a jammed industry, you need a solid business plan to get success.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

Things to Consider Before Writing Your Retail Store Business Plan

Build a brand image.

A brand image goes a long way for any business, especially for a retail store. It is crucial to pay attention to what people think about your store, what emotions they associate your brand with, and how they perceive your products in general. Above all, what qualities make you different from your competitors?

Pick the right location

A retail store’s location can make or break the deal. Hence, it is very important to pick a location that is both convenient and accessible for your customers. As people are always running short of time, they prefer a store that is on the way and takes less time to get to. It can also act as your USP over the bigger retail stores.

Plan a good store design

A good store design that follows the major principles of consumer psychology is essential for a retail store. The strategic placement of products influences a customer’s buying decisions. Hence, you need to pay attention to it and design your store in a way that maximizes your sales.

Build communities that promote your brand

Building communities that stand by and promote the idea of your brand can be extremely beneficial for your retail store. Hence, ensure that you work towards building one. These communities can be driven by anything from a common belief to a certain cause that your brand stands for.

How Business Plan Can Help?

Regardless if you’ve been operating for a long time already, by writing up a business plan for your retail store, you can get an overview of what you want to achieve with your business, and guidelines for how you’ll achieve your goals.

A retail business plan is a solid foundation for the success of your business, whether you seek funding or not. It helps you see clearly what your business looks like and how it’s positioned in your target market.

If you need to get funding, your retail business plan will work as proof that you and your business are good for investment. Studies suggest you can double your chances of securing a loan with a business plan and grow your business.

How to Write a Retail Store Business Plan?

Writing a retail store business plan requires a good amount of research, a thoroughly competitive and customer analysis, and a little bit of extra help.

You can get help for writing your plan either through a premade template on the internet or through an online business plan software which will help you write a customizable plan anywhere and at any time.

Before you start writing your business plan for your new Retail store business, spend as much time as you can reading through some examples of retail & e-commerce-related business plans .

We have created this sample business plan for you to get a good idea about how a perfect retail store business plan should look like and what details you will need to include in your stunning business plan.

Retail Store Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Company Profile Summary
• Market Research Summary
• Marketing Summary
• Finance Summary
• Business Overview
• Company History
• Legal Structure Vision & Mission
• Industry Profile & Market Size
• Local Market
• Target Market
• Competitor Analysis
• Keys to Success
• Customer Survey Summary
• SWOT Analysis
• Products and Services
• Pricing Strategy
• Marketing Strategy
• Primary Marketing Activities
• Positioning Statement
• The Sales Process
• Strategic Alliances
• Location(s)
• Legal Issues
• Insurance Issues
• Human Resources (Or Team)
• Process/Production
• Risk Assessment
• Startup Funding & Capital
• Start-Up Costs
• Sales Forecast
• Projected Profit & Loss

What to include in a Retail Store Business Plan?

A retail store business plan consists of several different aspects. The major ones are as follows:

1. Executive Summary

The executive summary gives an overview of what your business stands for the reader. It should be written in such a way that even an outsider could get an idea of what your business is all about.

This section mainly comprises your business summary, your vision and mission statement, and your financial summary.

2. Company Profile

The company summary or company profile section of your business plan would consist of everything about your company, ranging from its location to information about your team.

While the executive summary section consists of information about the functional aspects of your business, a company summary consists of information about the structural aspects of your business.

While writing a company summary, it is a good practice to take suggestions from your team, as this section represents you as a team of individuals more than representing you as a brick-and-mortar company.

3. Market Research

Conducting market research helps you understand what you are getting yourself into. It helps you understand your target market, your competitors, and the working of the industry in general.

You can conduct thorough market research by using tools like PESTEL analysis or SWOT analysis . These tools help you conduct research specific to your business and prevent you from wasting your time on vague data.

4. Marketing Plan

As a retail store, it is your primary job to let your customers know about your existence. And to retain them once they start coming to your store.

A good marketing plan would help you do just that.

Based on the information you have gathered about your target audience through market research you can design your marketing campaign and promotional offers that’ll appeal to your customer base.

5. Operations

As a retail store, a proper operations plan can prevent your business from turning into a chaotic mess. An operations plan consists of your business’s logistic and functional information. It helps an outsider see what a typical day at your business looks like.

It also consists of your long-term and short-term goals. As well as the milestones you’ll have to reach for achieving them.

As a retail store business, your operations plan would consist of your supply renewal cycles, your backup distributors, a plan for the working of your store, your daily sales targets, and your long-term expansion goals, etc.

6. Financial Plan

A financial plan ensures that your business sails smoothly through tough times and also generates maximum profits.

It would consist of your funding requirements, cash flow projections, and profit forecasts.

As a retail store financial plan would consist of the funding requirements for setting up your store, buying supplies, and hiring people. It would also consist of your projected profits and break-even analysis.

Download a sample retail store business plan

Need help writing your business plan from scratch? Here you go;  download our free retail store business plan pdf  to start.

It’s a modern business plan template specifically designed for your retail store business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Retail Store Business Plan Summary

In conclusion, a retail store business plan helps you organize and manage your store better. It takes care of everything that goes behind the scenes of running a retail store, so you can greet your customers with a smile.

From angry customers to poorly stocked supplies, a business plan can save you from all of it.

After getting started with Upmetrics , you can copy this retail store business plan template into your business plan and modify the required information and download your retail store business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

Related Posts

Convenience Store Business Plan

Toy Store Business Plan

400+ Sample Business Plan Template

Farmers Market Business Plan

How to do a Customer Analysis

Business Plan Writers Hiring Guide

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Popular Templates

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Retail Dogma

RETAILDOGMA

RETAIL EDUCATION & TRAINING SOLUTIONS

Retail Business Plan

A retail business plan is a document that gives you and your potential investors a roadmap on how your new retail business intends to get started and deliver its business goals over its initial few years (usually 5 years).

It is usually broken down into sections about the company, the industry it operates in, the competition it will face and a plan that covers marketing, financials and operations over the first few years in business.

Also check out this one-page Business Model Canvas for a retail business .

Retail Business Plan Template

You can download this free retail business plan template from the link below. You will be able to edit the word file and export it into PDF format afterwards.

In the coming sections, we will explain the different components that go into the retail business plan, which you can then apply to your own plan when completing the template.

Check out more free downloads .

Executive Summary

We recommend writing the executive summary at the end of the process, after you have filled out all the other sections in the retail business plan template.

In the executive summary you will cover the following points briefly:

• Types of products sold at the store
• Customers served by the store
• Company mission & vision
• Market share to be captured

You will also mention the total amount you will need to start this business, backed by the financial plan you prepared as part of this business plan.

The total amount that you want to borrow or have invested in your business will be the sum of pre-opening costs (initial inventory, equipment, rent,..) and the maximum negative cash flow as per your cash flow plan.

If you are writing this retail business plan for a financial institution to get a loan, mention how you expect to repay the loan, and you should have already included the loan installments in your financial plan.

If you are writing this plan for investors, mention how much equity they will receive in return for this investment and the expected return on investment, and expected cash distributions (dividends) based on your financial plan.

For example

An investment of 100,000$ in the business will result in the investor receiving 20% equity. We plan to distribute 50% of the profits every year, and based on our financial projections this will be a xx,xxx$ in the first year, xx,xxx$ in the second year, and xx,xxx$ in the third year,..etc.

Company Overview

Here you will write about your business and give a brief overview about the type of store you will be starting.

You can cover the following points:

• Store category (e.g. beauty store, toy store)
• Store location and brief description of the area
• Product categories carried
• Company legal structure

Industry Overview

Write an overview about the industry (retail/ecommerce) as a whole and the most recent trends specific to this industry.

Cover areas such as:

• Total retail sales
• Contribution of your retail category to the total sales (size of the market)
• Online vs. Brick & Mortar trends
• Recent industry trends and shifts in terms of products you are selling

You can find the most recent insights about retail in our Retail Statistics page.

Read Also: What is Retail ?

Target Market

Write about your target customers that you know will be interested in your products. Mention demographic and psychographic details in this section. This will help afterwards in drafting your marketing plan.

You can cover the following details:

• Age bracket
• Income level
• Educational level
• The specific needs that your products will fill for them

FOUNDATIONS OF MARKETING

• Learn the fundamentals of marketing
• See how they apply to buying, merchandising & pricing
• Real-life case studies and examples

Competition

List the current competition in the market that are serving your target customers. Mention your top 3 competitors in your area.

You can also include indirect competition, such as online stores or marketplace sellers, if you think this might affect your business.

Cover information about:

• No. of stores
• Size of stores
• Product categories they sell
• Pricing level
• Sales per day estimates
• Strengths & Weaknesses

You can also create a summary table like the one below

Competitive Advantage

What will make customers leave the competition and come to you? Use the weaknesses areas that you mentioned about the competition in the previous section, and mention how you will improve on them.

This could be by:

• Superior quality
• Better prices
• Convenience
• More variety
• Better shopping experience

Marketing Plan

Describe your marketing strategy for your store and which channels you are going to use.

Cover the following areas:

• Brand Positioning
• Branding Strategy (Persona, tone, language,..)
• Product Strategy (Key products and product features that will attract your customers)
• Pricing Strategy
• Promotional Strategy
• Marketing Channels

Operations Plan

Write how you will operate your store and include details about your manpower plan.

This will include the management that you will hire for the store, visual merchandisers, sales staff and cashiers.

Cover the following:

• Management structure (store manager, supervisor,..)
• Staff plan (3 sales associates, 2 cashiers, etc.)
• Brief role descriptions
• Compensation structure

Read Also: Retail Scheduling

RETAIL OPERATIONS MANAGEMENT

• Managing Store Operations
• Areas of Responsibility
• Assessing & Managing Performance

Financial plan

List estimates for the capital you will need to start and financial projections for the following years.

Capital Needed

Start with how much capital you will need to start the business

This will include:

• Initial rent
• Initial product order (Inventory)
• Initial staff salary
• Store fixtures
• Store equipment

Read Also: How Much Capital You Will Need For a New Retail Store?

Financial Projections

Include a 5-year financial projection for the business based on your forecasted sales and costs.

• Monthly income statement (P&L) for the first year
• Yearly income statement for the following 4 years
• Monthly cash flow projection for the first year

Learn how to create a sales budget for a new store, and 3 years financial projections in our Retail Budgeting Course

RETAIL BUDGETING & PLANNING

• The step by step retail budgeting process
• Set monthly targets adjusted to seasonality
• Templates download & practice exercise

Break Even Point

Include a snapshot of the 5-year P&L plan here and mention the SPD (sales per day) you need to breakeven, based on your P&L numbers.

We have created a sample table with retail data in the business plan template, and you can fill it with your own numbers.

Key Assumptions

Mention the assumptions you used for creating your financial projections.

For example , you assumed that sales per day for the first year will be 1000$ and then will grow by 20% in the second year, 15% in the third year and 10% in the fourth year, etc.

Retail Business Plan Tips

Sales projections.

We recommend being very realistic about your initial sales per day projections, as your entire financial plan will be directly affected by it.

When you then forecast your growth for the coming years, you should also be realistic about how much you will grow year-on-year.

From our experience, retail stores typically see higher growth after the first year and then this starts to level off from the third year onwards.

Having said that, there might be other growth drivers that can affect your business and accelerate your growth in the following years. This could be for example that your new store is in an area that is still under development and will be fully developed by the third year.

What we want to say is, do your due diligence thoroughly and based on that set realistic expectations.

Inventory Projections

The biggest asset you will hold and the biggest part of the investment/loan you will need to start your retail business will go for inventory.

So it is important to calculate your inventory needs correctly.

This will be based on your sales forecasts and the inventory turnover rate you expect or the forward stock cover you intend to maintain.

For example, if your inventory turnover target is 2, this means you maintain a 6 months cover. If your inventory turnover is 3, you maintain 4 months stock cover,..and so on.

We recommend checking out the benchmarks we have listed for different retail categories for inventory turnover and reading our complete Open to Buy guide to get started with calculating exactly how much inventory you will need.

Good luck in your new venture!

THE PROFESSIONAL RETAIL ACADEMY (PRA) ™

• In-depth retail management courses
• Learn the best practices of the industry
• Download ready-to-use professional templates
• Get certificates of completion for each course
• One membership = Access to all courses

More Resources

Thank you for reading this article on Retail Business Plan. We recommend the below free resources as well:

• Retail Management
• Starting a Retail Business
• Buying a Retail Business

Join the academy and get all access to all our resources, which will help you manage your retail business more efficiently.

ADVERTISE HERE

CONNECT THE DOTS

Learn how to manage a retail business end-to-end.

We’ve put together a curriculum, specifically designed for retail owners or retail professionals who want to advance into senior management roles.

Learn how to connect the dots of the business and take the basic knowledge to the next level of application . 

How to Open a Store

ON THIS PAGE

How To Open a Store

• How To Open a Store FAQs

Starting your own retail store can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful store.

Importantly, a crucial step in starting a store is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here.

Download our Ultimate Store Business Plan Template here

17 Steps To Start a Store

• Decide Which Type of Store To Open
• Choose the Name for Your Store
• Develop a Business Plan for Your Store
• Choose the Legal Structure for Your Store
• Secure Startup Funding for Your Store (If Needed)
• Secure a Location for Your Business
• Register Your Store With the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Store
• Buy or Lease the Right Retail Store Equipment
• Build Vendor and Supplier Relationships
• Develop Your Store Marketing Materials
• Purchase and Setup the Software Needed to Run Your Store
• Open for Business

1. Decide Which Type of Store To Open

There are many different types of stores that you can choose to open. The type of store that you ultimately decide to open will depend on a number of factors, including your budget, the location of your store, and the type of products or services that you plan to sell. Some popular types of stores include clothing stores, grocery stores, convenience stores, and department stores.

Just be sure to do some market research into your area to determine which type of store will work. You will also want to investigate the varying startup costs for each store to determine which ones are within your budget. You should choose a niche early on to make the rest of the startup process easier.

2. Choose the Name for Your Store

Once you have chosen which type of store to open, it is time to pick a name.

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your store:

• Make sure the name is available. Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple. The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing. Come up with a name that reflects the desired brand and/or focus of your store.

3. Develop a Business Plan for Your Store

One of the most important steps in starting a new store is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your store.
• Company Overview – this section tells the reader about the history of your store and what type of retail business you operate. For example, do you sell clothing, cosmetics, or a variety of products? Do you offer online sales or only sell at a brick-and-mortar location?
• Industry Analysis – here you will document key information about stores within the industry you choose. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, where do they live? Are they in a particular income bracket? What do they look for when purchasing items like those you sell?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your store? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your business operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your store make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your store.

Next you need to choose a legal business structure for your store and register it and your business name with the Secretary of State in each state where you operate your retail business.

Below are the five most common legal structures:

1) Sole Proprietorship

A sole proprietorship is a business entity in which the owner of the store and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to start a store together. The partners share in the profits and losses of the business.

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a store include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a store is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your store, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

5. Secure Startup Funding for Your Store (If Needed)

In developing your store’s business plan, you might have determined that you need to raise funding to launch your business.

If so, the main sources of funding for a store to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a store that they believe has high potential for growth.

6. Secure a Location for Your Business

The next step in opening your own store is to find the perfect retail location for your business. This can be a tricky task, as there are many factors to consider when choosing a retail space. You’ll need to find a space that is the right size for your needs and in a good location that will draw customers to your business. You’ll also need to make sure that you can afford the rent or mortgage payments for the space.

When searching for a location, it’s important to keep your target market in mind. You’ll want to choose a location that is convenient for your target customers and easy for them to find. You might also want to consider opening a store in a mall or shopping center, as this can give your new business exposure to a larger number of potential customers.

To find the right space, consider:

• Driving around to find the right areas while looking for “for lease” signs
• Contacting a commercial real estate agent
• Doing commercial real estate searches online
• Telling others about your needs and seeing if someone in your network has a connection that can help you find the right space

7. Register Your Store With the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

8. Open a Business Bank Account

It is important to establish a bank account in your store’s name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

9. Get a Business Credit Card

You should get a business credit card for your store to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

10. Get the Required Business Licenses and Permits

Every state, county and city has different business license and permit requirements.

Nearly all states, counties and/or cities have license requirements including:

• General Business License – You need this to operate any type of business. The requirements vary by state, but generally you’ll need to file a short application and pay a small fee.
• Sales Tax Permit – You need this if you’re going to sell physical goods. You’ll need to register with your state’s revenue agency and collect sales tax on all applicable transactions.
• Liquor or Beer License – You need this if you’re going to sell alcohol. The requirements vary by state, but you’ll generally need to submit an application and pay a fee. You may also need to prove that your business is located in a designated “wet” area.

Depending on the type of store you launch, you will have to obtain the necessary state, county and/or city licenses. Be sure to check local guidelines and specific licensing requirements for the type of store you want to open.

11. Get Business Insurance for Your Store

Business insurance policies that you should consider for your store include:

• General Liability Insurance – You need this insurance to protect your business from risks such as slips and falls, customer injuries, and property damage.
• Product Liability Insurance – You need this insurance to protect your business from risks associated with the products you sell, such as defects and malfunctions.
• Property Insurance – You need this insurance to protect your store’s physical premises, including the building, inventory, and equipment.
• Workers’ Compensation Insurance – You need this insurance to protect your business from risks associated with your employees, such as on-the-job injuries.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.

12. Buy or Lease the Right Retail Store Equipment

A store needs a variety of business equipment in order to function. This includes things like cash registers, shelving, and signs. In addition, a store might also need a computer, tablet, or another device able to run point-of-sale (POS) and/or inventory management software. Other items to consider buying include security systems, phones, store displays, cleaning and office supplies, and a credit card machine.

13. Build Vendor and Supplier Relationships

Part of the fun of running your own store is building relationships with vendors and suppliers who will help you stock your shelves and keep your business running smoothly.

You will first need to find vendors and suppliers who can provide you with the goods you want to sell. There are online directories, such as ThomasNet.com, that list manufacturers and suppliers by industry. Another option is to attend trade shows related to your industry and meet potential vendors and suppliers in person. Just be sure to research companies completely before signing any type of agreement.

Once you have some suppliers and vendors established, make sure to communicate clearly and quickly, pay your bills on time, and show your appreciation for good service. These tips go a long way in building and maintaining good relationships with vendors and suppliers from all industries.

14. Develop Your Store Marketing Materials

Marketing materials will be required to attract and retain customers to your store.

The key marketing materials you will need are as follows:

• Logo – Spend some time developing a good logo for your store. Your logo might appear on your storefront, be printed on receipts and shopping bags, and be used across all your marketing efforts. The right logo can increase customer trust and awareness of your brand.
• Website – Likewise, a professional store website provides potential customers with information about the products and/or services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how your target market perceives you. A good website is also crucial if you plan to set up an eCommerce site to sell your products online in addition to your physical retail store.
• Social Media Accounts – Establish social media accounts in your store’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your store. Social media platforms are also great places to announce new merchandise and run promotions.

15. Purchase and Setup the Software Needed to Run Your Store

To open a store, you need to have the right software. This includes POS software and inventory management software. These programs can help you manage your store more effectively and efficiently.

POS software is important for keeping track of sales. It can also help you process transaction more quickly and accurately. Some popular POS software options include Shopify, Square, and Clover.

Inventory management software is critical for any store owner. It helps you keep track of what products you have in stock, as well as when they need to be reordered. Inventory management software options include Stockpile and Inflow Inventory.

Research the software that best suits your needs, purchase it, and set it up.

16. Hire Staff

You will probably need staff to help run your store. Employees can do things like handle customer service, stock shelves, and process sales. Start by writing a job description for each position you plan to fill. Then, post the job descriptions online and in any relevant print publications. You can also ask friends, family, and acquaintances if they know anyone who might be interested in working for you.

Once you have a few candidates, invite them in for interviews. During the interviews, be sure to ask each candidate questions about their experience and qualifications. You should also give them a chance to ask you any questions they may have. After the interviews are complete, choose the candidate you think would be the best fit for each position.

17. Open for Business

You are now ready to open a retail store. Hosting a grand opening is a great way to introduce yourself and your new store to the local community and bring in potential customers.

If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

How to Finish Your Store Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Store Business Plan Template you can finish your plan in just 8 hours or less!

How to Open a Store FAQs

Is it hard to start a store.

The simple answer is no, starting a store is not hard. The more accurate answer is that it depends on what you are trying to sell, how big of an operation you want  to run, and most importantly - whether or not you have a good business plan.

If you want to open a small retail shop, then the process is relatively straightforward. If you're selling products that you make yourself, then you'll also need to create a product line and manufacture your goods.

The biggest challenge you'll face when opening a store is making it successful. This means attracting customers, getting them to buy from you, and then keeping them coming back. It takes a lot of hard work, dedication, and marketing savvy to make a store thrive.

If you're up for the challenge, then opening a store can be a very rewarding experience. Not only will you get to be your own boss, but you'll also get to create a space that reflects your taste and personality. Plus, you'll have the satisfaction of knowing that you built something from scratch and made it successful. Following the steps outlined above is a great place to start.

How Can I Start a Store With No Experience?

If you're wondering how to open a store with no experience, the process may seem like a challenge. However, with careful planning and execution, it is possible to start your own retail business successfully. The most important thing you can do is research. Investigate the retail industry carefully and the specific features of whatever type of store you want to open. You should also look into the area in which you want to open a store to make sure there is a good fit and customers who are willing to purchase your goods. It might also be worthwhile to look into classes or online courses for retail management.

What Type of Store Is Most Profitable?

There are many types of stores, but some are more profitable than others. Some of the most profitable stores sell items like jewelry, luggage, and clothing. These items may not work in every market, however, and the best thing you can do to increase your chances of making a profit is research what customers in your area want to buy.

How Much Does It Cost To Start a Store?

The cost of starting a store can vary greatly depending on the type of business you want to open. For example, a small retail shop will have different costs than a large department store. Additionally, the location of your store will also affect how much it costs to get started. Generally speaking, it is expensive to open a store in a major city like New York or London. However, you can find cheaper locations if you are willing to open your store in a smaller town or city.To get an idea of how much it would cost to open a specific type of store, you can research the average costs for opening that type of business. Additionally, you can speak with other store owners to get an idea of how much they spent on start-up costs. Finally, you can also consult with a business advisor or accountant to get a more specific estimate of the costs associated with starting a store.

What Are the Ongoing Expenses for a Store?

From rent and utilities to inventory and staffing, there are a lot of different factors that can affect your store's bottom line. Some of the most common expenses:

• Rent - For many businesses, rent is one of the biggest ongoing expenses. The amount you’ll pay will depend on the size and location of your store.
• Utilities - Whether you have a physical storefront or an online store, you’ll need to pay for utilities like electricity, water, and trash service.
• Inventory - In order to keep your shelves stocked, you’ll need to regularly purchase inventory. The cost of inventory can fluctuate based on market conditions.
• Staffing - If you have a physical store, you’ll need to hire employees to staff it. In addition to their salaries, you’ll also need to pay for things like workers’ compensation and payroll taxes.
• Marketing - To help drive traffic to your store, you’ll need to invest in marketing and advertising. The cost of marketing can vary depending on the type of campaign you run.
• Insurance -  To protect your business, you’ll need to carry insurance. The type and amount of coverage you need will depend on the nature of your business.

These are just a few of the many ongoing expenses that you’ll need to contend with when you open a retail store. By understanding the costs associated with running a business, you can better prepare yourself for success.

How Does a Store Make Money?

There are a few different ways that stores make money. The first and most obvious is through sales of merchandise. When customers come in and purchase items, the store makes a profit off of the difference between the cost of the item and the selling price. Retail businesses also make money through services they may offer, such as gift wrapping or alterations. Finally, some stores make money by renting out space to other businesses, such as ATM machines or vending machines.

Is Owning a Store Profitable?

The answer to this question largely depends on the type of store you want to open, your location, and the level of competition in your area. However, with the right planning and execution, owning a store can be a very profitable endeavor. Just be sure to understand your expenses and make sure there is a market for the type of store you want to open in your area before you begin.

Why Do Stores Fail?

There are many reasons why stores fail. Often, it is because the store owners did not do their homework and research the market before opening their doors. They may have picked the wrong location, or they may have overestimated the demand for their product. Other times, retail businesses fail because they simply cannot compete with the big box stores or online retailers.

How Do I Plan a Launch Event?

Planning for the launch of your new store requires strategic thinking about how the launch will support the ongoing operation of the store into its first year. This long-term thinking should keep the planning of the launch event from becoming simple party planning.

Coordinate the Pieces

Many different, separate projects must reach completion by the time of launch to make sure it goes off without a hitch. the improvements to the store’s space must be completed, including all interior and exterior renovations and the placement of displays and equipment. inventory must be purchased and put on display. staff must be trained and ready to work. the systems (software, hardware, and human) for sales, accounting, and store maintenance should all be in place and tested., launch event.

Most stores publicize a launch event, whether it is a short reception, day-long event, or sale for a week or more. For a successful launch event, always keep in mind that the purpose is not for the management and staff to celebrate, but to make customers and the community aware of your opening and to jump-start sales by encouraging them to try your products. To do this, concentrate on how to get potential customers to attend the launch event and on how to treat them when they arrive.

Marketing for the launch event can use many of the same promotion tactics that the business will use on an ongoing basis, such as:

• social media marketing
• print advertising
• public/press relations
• direct mail

Furthermore, signage on the exterior of the store in the weeks and months before the event can raise awareness, as can signage once the opening event is underway.

Also, be sure to put together an invite list weeks before the event. Invite prominent members of your community to attend and ask them to invite others.

To create a festive atmosphere, stores often use standard party decorations, like streamers and balloons. However, it may be more strategic to put this money towards free samples, gifts with purchases or some other type of enticements and thank yous to the store’s first customers. The point is not just to create buzz leading up to the launch event, but for the launch event to create buzz which builds customers as the store moves into regular operations.

The first step to opening a store is to develop your retail store business plan . Growthink provides products and services to help you develop a professional business plan and turn your dream into reality.

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan consultants can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Retail Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Wholesale & Retail

Are you about starting a retail business? If YES, here’s a complete sample online retail store business plan template & feasibility report to help you get started.

Okay, so we have considered all the requirements for starting a retail store. We also took it further by analyzing and drafting a sample retail store marketing plan template backed up by actionable guerrilla marketing ideas for retail stores. So let’s proceed to the business planning section.

There are times when one might not be disposed to buy stuff in bulk. This might be due to financial constraint or other contingencies. This is one of the reasons why retail outlets are scattered all over the world. They know the importance of reaching all and sundry, and that is why they want to provide services that can reach all classes of people.

Those who are already in the trade know the huge profit levels which they attain always. If you have decided to start a retail business, then good news is that you are in a profitable trade, as nearly all the type of goods that are being dealt in is such that is important to all

A Sample Retail Store Business Plan Template

1. industry overview.

When we talk about retailing, we talk about a business that deals in loads of consumer goods; which can be categorized into three major areas. These categories are: general merchandise, apparel, and furniture. In other words, retailers are engaged in the selling of finished goods; they get the goods from the manufacturers and they sell to the end users (consumers).

Retail goods can also be categorized into durable goods and non – durable goods. Durable goods are goods such electronics, computers and accessories, furniture, and other large appliances et al and non – durable goods are good such as food, toiletries, drinks, beauty products, jewelry, clothing and shoes et al.

The retail industry is a major sector of the economy of the united states which generates a whooping sum of well over trillion annually from more than a million retail outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 15 million people which is about 12% of the workforce of the U.S. eMarketer.com published that in 2014 alone, the retailing industry on a global scale generated a revenue of well over $22 trillion; it goes to show that the industry is indeed a very large industry.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.

In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing industry negatively which may result in the closure of some retail stores.

In recent time, the retail landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical store is located.

It is interesting to note that more retail shops; especially lager retail outlets have started to include self-serve checkout lanes in their stores. It creates shorter lines that appeal to consumers; the average customer would not want to stay longer on queue.

Over and above, the retail industry is a profitable industry and it is open to any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets in key cities.

2. 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 piece directly opposite the largest residential estate in Columbus, Ohio.

Our retail shop will retail a wide range of durable goods and non – durable goods at affordable prices from different brands. We retail goods such as groceries, clothes, sports equipment, beauty products, jewelry, baby stuffs, children’s toys, home furnishings and home appliances et al.

We are aware that there are several large and small retail outlets all around Columbus, which is why we spent time and resources to conduct our feasibility studies and market survey, so as to offer much more than our competitors will be offering.

We have sell service options for our customers, and our outlet is well secured with the various payment options. Much more than selling the goods and products of top brands in the manufacturing industry, our customer care is second to none in the whole of Columbus, Ohio.

We know that our customers are the reason why we are in business, and that is why we will go the extra mile to get them satisfied when they visit our retail shop and also to become our loyal customers and ambassadors.

People’s Choice Retail Shop will ensure that all our customers are given first class treatment whenever they visit our shop. We have a CRM software that will enable us manage a one on one relationship with our customers, no matter how large the numbers of our customers base.

We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when make some business decisions.

We are aware of the trend in the retail industry and we are not only going to operate a system where our customers would have to come to our shop to make purchase or whatever they want but we will also operate an online store and our customers can order goods online and they will get it delivered to their houses or any location they want us to deliver the goods to within Ohio.

People’s Choice Retail Shop is a family business that is owned by Bob Wesley and Family. Although the business is launching out with just one outlet in Columbus, Ohio, but there is a plan to open other outlets all around Ohio.

3. Our Products and Services

People’s Choice Retail Shop is in the retailing industry and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our store a wide range of durable goods and non – durable goods at affordable prices. We retail goods such as groceries, clothes, sports equipment, beauty products, jewelry, children’s toys, baby stuffs, home furnishings and home appliances et al.

4. Our Mission and Vision Statement

• Our vision is to establish a one stop retail shop in Columbus, Ohio and in other cities in Ohio.
• Our mission is to establish a retail business that will make available a wide range of goods and products from top manufacturing brands at affordable prices to the residence of Columbus, Ohio and other cities in Ohio.

Our Business Structure

People’s Choice Retail Shop do not intend to start a retail business like the usual mom and pop business around the street corner; our intention of starting a retail business is to build a standard retail outlet in Columbus, Ohio. Although our retail business might not be as big as Wal-Mart or Marcy, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Store Manager:

• Responsible for managing the daily activities in the restaurant
• Ensures that the store facility is in tip top shape and conducive enough to welcome customers
• Interfaces with third – party providers (vendors)
• Controls the sales floor inventory
• Ensures that goods and products are properly arranged
• Supervises the entire sales staff and workforce
• Any other duty as assigned by the CEO
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of goods and products on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Receives payments on behalf of the organization
• Issues receipt to customers
• Prepares financial report at the end of every working week
• Handles all financial transaction on behalf of the company
• Interfaces with our bankers
• Responsible for payment of tax, levies and utility bills
• Any other duty as assigned by the CEO / store manager
• Responsible for cleaning the store facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Any other duty as assigned by the restaurant manager,

6. SWOT Analysis

Our intention of starting just one outlet of our retail store in Columbus, Ohio is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over Ohio. We are quite aware that there are several retail stores all over Columbus and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.

People’s Choice Retail Store employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for People’s Choice Retail Store;

Our location, the business model we will be operating on (physical store and online store), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for People’s Choice Retail Store.

A major weakness that may count against us is the fact that we are a new retail outlet and we don’t have the financial capacity to compete with multi – billion dollars retail outlets like Wal-Mart and co when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we are going to be operating our retail store in one of the busiest streets in Columbus, Ohio, provides us with unlimited opportunities to sell our goods to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our retail outlets; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new retail outlet in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Retailing business has been in existence for as long as humans started trading goods, but one thing is certain, the retailing industry is still evolving. The introduction of technology and subsequently online retail store has indeed helped in reshaping the industry.

It is now a common phenomenon for retail outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help retail shops serve them better.

Another common trend in the retailing industry is the pricing system. Aside from having varieties of products in a store, one of the easiest ways for retail stores to sell the goods on their racks as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable elsewhere.

For example; it is common to see items with prices in this format; $3.99, $99 and $199 et al as against $4, $100 and $200. Retailers also engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

Perhaps the retailing industry has the widest range of customers; everybody on planet earth has one or more things that they would need in a retail shop. It is difficult to find people around who don’t patronize retail shops.

In view of that, we have positioned our retail store to service the residence of Columbus, Ohio and every other location our retail stores will be located all over Ohio. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of products to the following groups of people;

• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our Competitive Advantage

People’s Choice Retail Store is launching a standard retail shop that will indeed become the preferred choice of residence of Columbus, Ohio. Our retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Columbus, Ohio. We have enough parking space that can accommodate well over 100 cars per time.

One thing is certain; we will ensure that we have a wide range of products available in our store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goal is to make People’s Choice Retail Store a one stop shop.

Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

9. SALES AND MARKETING STRATEGY

• Sources of Income

People’s Choice Retail Shop is in business to retail a wide range of products to the residence of Columbus, Ohio. In essence, our source of income will be the retailing of a wide range of durable goods and non – durable goods at affordable prices.

We will retail goods such as groceries, clothes, sports equipment, beauty products, jewelry, children’s toys, baby stuff, home furnishings and home appliances et al.

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. One thing is common with retailing business, the larger a retail store the larger the numbers of customers that will patronize them.

Although we may not be as large as Wal-Mart, but we will ensure that within our capacity we make available a wide range of goods from different manufacturing brands in our retail outlet. Below are the sales projections that we were able to come up with for the first three years of operations;

• First Year-: $200,000
• Second Year-: $450,000
• Third Year-: $700,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for People’s Choice Retail Store, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Columbus, Ohio.

We have a detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Columbus, Ohio.

In order to continue to be in business and grow, we must continue to sell the products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, People’s Choice Retail Store will adopt the following sales and marketing approach to win customers over;

• Introduce our business by sending introductory letters to residence, business owners and organizations
• Promptness in bidding for contracts
• Advertise our business in community based newspapers, local TV and radio stations
• List our business on yellow pages ads
• Leverage on the internet to promote our business
• Direct marketing
• Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our retail store. People’s Choice Retail Store has a long term plan of opening outlets in various locations all around Ohio which is why we will deliberately build our brand to be well accepted in Columbus before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise People’s Choice Retail Store;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
• Install our Bill Boards on strategic locations all around Columbus, Ohio
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where our retail store is located.

12. Our Pricing Strategy

Pricing is one of the key factors that give leverage to retail stores, it is normal for consumers to go to places (retail outlets) where they can goods at cheaper price which is why big player in the retail industry like Wal-Mart will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Wal-Mart or any other big retail store, but we will ensure that the prices of all the products that are available in our store are competitive with what is obtainable amongst retail stores within our level.

• Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Ohio – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of People’s Choice Retail Store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $2,500 .
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of products) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• Cost for serving area equipment (plates, glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000 .
• The cost of Launching a Website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $500,000 to successfully set up our retail store in Columbus, Ohio. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for People’s Choice Retail Store

People’s Choice Retail Store is a private business that is solely owned and financed by Bob Wesley and family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources. These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

People’s Choice Retail Store will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• writing of business plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – suppliers of all our needed raw materials: In Progress

Related Posts:

• Gift Basket Business Plan [Sample Template]
• Flower Shop Business Plan [Sample Template]
• Consignment Shop Business Plan [Sample Template]
• Flea Market Business Plan [Sample Template]
• Mall Kiosk Business Plan [Sample Template]

Keep your inventories balanced at every level of the supply chain completely autonomously and meet your demand needs stress-free.

• Demand forecasting
• Automatic replenishment
• Fresh inventory
• Promotion management
• Multiechelon allocation
• Seasonality & trends

Take complete charge of your merchandising process from planning to execution and automate your planogram generation.

• End-to-end merchandising process
• Floor space planning
• Micro space management
• Store specifics planograms
• Autoplanogram generation
• In depth analytics

Create an assortment strategy, manage, and optimize it with the help of an AI-assistant and deep analytics.

Enhance your revenue, profitability, and market presence by building robust customer relationships.

Experience substantial cost reductions and unparalleled efficiency in logistics management.

Excel in margin and revenue growth through assortment planning, inventory optimization, merchandising management and trade promotion forecasting.

• Grocery & Supermarkets
• Convenience stores
• Liquor stores
• DIY & Building Materials
• Health&Beauty

Assume control over fluctuating assortments and volatile demand disturbances to promote efficiency enhancements across end-to-end operation.

• CPG manufactures
• Distributors
• Wholesalers
• CASE STUDIES
• Leadership team
• Security compliance
• Assortment performance
• Customer loyalty
• Retail store layout design and planning

Retail store layout design and planning: What, How & Why

• May 15, 2024

Head of customer success

A good retail store layout is the main visual result of planning and one of the keys to the success of the entire retail management strategy. Its quality, attractiveness, and convenience directly affect atmospherics and customer experience. That in turn enhances loyalty, the average check, and many other things that ultimately shape retail business performance.

In this article, we will explore different types of store layouts, their advantages and disadvantages, where to start, and what data and tools to use. Together with modern store space planning software , this is your guide to creating appealing and profitable shop layout ideas.

The importance of a retail store floor plan

The "why" of thorough retail space planning is the easiest to address. Psychology and experience have taught us two important things. First, about 60–65% of people perceive information and the world around them better through visual channels. Second, merchandise displays are both the endpoint of the entire goods journey from manufacturers to buyers and—just as importantly—a part of the brand image.

Therefore, visual merchandising and retail store floor plans at the macro level play a key role in driving customer experience.

Retail store layout design and planning: how to start

The more thoroughly you map out the idea of your retail stores, the more rationally you will allocate resources and get your investments back. Like any other business process, store design in retail business should be based on data. 

At the initial stage of store planning, several crucial factors should be considered:

• The available commercial space 

Take a close look at the future sales floor. What architectural and spatial features are there? Are there any bottlenecks?

• Products and their assortment

A store layout that is suitable for a branded boutique will not work for a grocery store. The need to create brand zones or sell goods from different product categories dictates its requirements for zoning and product neighborhood.

Consider commercial and auxiliary equipment. If the assortment of your store requires specific display units (e.g., freezers) or separate testing areas, you should take this into account at the initial stage.

•  Your customers 

Who are your consumers: innovators or conservatives? Young people or families with children? People of average income or upscale customers? Do they need and welcome advice or do they prefer to make their own choices? Do they run into the store for a minute to grab something specific, or do they take a long time when choosing what to put in their shopping cart?

Customer flow: its impact on a store layout design and sales

Watch out for the number of people entering and passing through your store, as well as their routes and other features (delays in certain areas, search for the necessary goods, behavior in the checkout area, etc.) You can analyze the traffic flow: 

• by observing the number of people entering the store;
• by reviewing surveillance camera footage (if available);
• analyzing purchase data about the location of goods and categories;
• using heat maps that show more and less effective areas of your store in terms of customer behavior.

Your goal is to make the experience at your store and the shopping process as pleasant and comfortable for customers as possible. Using various space management techniques helps to direct the traffic flow in a way that encourages customers to buy as much as possible, even if they don't plan to.

With LEAFIO AI data-driven solution for store space planning 

Key zones and spots in retail floor plan

Regardless of industry, type, and assortment, there are several zones in every retail location, and by identifying them at the macro-space stage, you will have more maneuvering room for implementing new ideas.

• Upon entering the store, your customers find themselves in the so-called decompression zone – the space of the first steps (3–5 or more, depending on the available space) . This is the zone of first contact, wide overview, and orientation in the store, which almost all customers pass through on "autopilot." Therefore, high and constant demand goods, as well as new and promotional offers, should not be placed in this area: they risk being unnoticed.
• The display cases with the best-selling products –should be located as far in the store as possible, so that the customer notices and buys other things on the way to them.
• The checkout area : the merchandise near the cash register is intended to drive impulse purchases.

Types of store layouts: options, advantages and disadvantages

There are different store layouts in retail, so take a look at the following classification.

Grid retail store layout

This is the most common and simplest retail store floor plan, which is based on maximizing the facings of goods. The grid consists of long aisles with shelving on both sides, where the main product range is displayed. Promotional displays and impulse goods are placed at the ends of the rows.

Modern grid variants often have reduced row lengths and/or long rows broken into several segments, which improves the overview of the store, but on the other hand, that also adds chaos to the flow of customers.

Herringbone store layout

It is essentially a type of grid for sales areas with a limited area and is used where it is necessary to place a maximum of items in a minimum of space. Therefore, it is often found in warehouse stores, hardware stores, and small DIY markets.

Diagonal store layout

This other variant of the "grid" is for stores with limited space. In this case, the aisles are arranged at an angle. This makes it easier to move around the store and access goods, which speeds up the selection and the way to the checkout.

Racetrack or loop layout

As a type of forced path store layout, the racetrack layout is designed to lead customers along a circular route, serving as the main corridor through the store.

Straight store layout

Similar to the main aisles in markets. It provides a good overview of the entire store space, thus inviting customers to the back of the store, where the most popular products can be placed. Placement strategy, zoning, and navigation are very important here.

Angular store layout 

It involves the use of separate display cases, shelves, and signs for different categories or groups of goods to emphasize their features. Therefore, this option is suitable and used in premium stores.

Boutique or shop-in-shop store design

Named for its prevalence in planning small stores within shopping malls, it exemplifies free store design in retail, employing zoning through light, transparent walls, fancy displays and fixtures, and other visual merchandising elements.

Free-flow retail store floor plan

It implies the absence of any conventions and templates for store layout ideas. The main thing is not to forget to rely on analytics.

In conclusion 

There is no one layout that would be one hundred percent right or wrong, most effective, etc., for a particular type of store. Our advice is to experiment, mix, and combine several types of layouts. Use your imagination and come up with your own unique shop layout ideas.

Innovative space management software such as LEAFIO Shelf Efficiency will help you develop a successful store layout strategy. The solution will even cut short the time needed to launch new stores if you are planning an expansion. The system already contains templates, typical equipment, displays, and fixtures for quickly creating and editing retail store floor plans. Just take a look at what Plum Market has achieved with the solution:

The implementation of the LEAFIO Shelf Efficiency solution  dramatically boosted Plum Market's store openings . With over 14,000 SKUs, the supermarket was fully prepared for launch in just 4.5 days, a remarkable improvement from the typical 14+ days. This enhancement became possible due to comprehensive floor plans and planograms accessible within the system.  

Don't hesitate to get in touch with our experts to book a consultation and get on board with what the successful market leaders are doing now.

Have a question?

Have inquiries about retail automation or optimization? Talk to our expert for solutions!

Alex Bilousko

Mar 10, 2023

11 min read

Merchandising is generally understood as managing the customer's purchase process at a retail outlet to encourage them to buy as many products as possible. But where it really starts?

Apr 15, 2022

Visual merchandising has a direct impact on customer perception. Learn how visual merchandising techniques can be used to influence your customers.

Mar 2, 2023

13 min read

Merchandising in supermarkets involves strategic product placement, attractive displays, and efficient inventory management. Key recommendations to increase sales.

Join our mailing list to receive a monthly digest of our most valuable resources.

Just fill out the form, and we’ll get back to you as soon as possible

Incorrect filling

Agree with the Privacy Policy and the storing and processing of your personal data by Leafio.

First name *

Corporate Email *

What are you interested in?

Cookie Policy

Watch CBS News

Store closures are surging this year. Here are the retailers shuttering the most locations.

By Aimee Picchi

Edited By Alain Sherter

Updated on: May 13, 2024 / 1:33 PM EDT / CBS News

The retail industry is going through a tough time as it copes with inflation-weary consumers and a rash of bankruptcies, prompting chains to announce the closures of almost 3,200 brick-and-mortar stores so far in 2024, according to a new analysis. 

That's a 24% increase from a year ago, according to a report from retail data provider CoreSight, which tracks store closures and openings across the U.S. Although some retailers are planning to expand this year, major chains have announced 4% fewer openings compared with a year earlier, the analysis found. 

Blame changing consumer habits, as well as retailers' management struggles and bankruptcies, with the latter impacting companies including Rite Aid and Rue21. The largest number of store closures stems from Dollar Tree's announcement earlier this year that it plans to close more than 600 Family Dollar locations in 2024, with the discount store citing the impact of inflation on its customers as well as an increase in shoplifting.

"A lot of this year's closures are related to bankruptcies of chains that have been in trouble for a while, like Rite Aid and Rue21," Neil Saunders, managing director of GlobalData, told CBS MoneyWatch. "We're also seeing several retailers, like Family Dollar, take action to weed out underperforming locations." 

Although consumer spending has remained solid this year, there are "pockets of softness creeping in, and retailers want to ensure they are in good financial shape to weather any challenges" Saunders added. "That means optimizing store portfolios."

Brick-and-mortar retailers are also struggling with ongoing competition from online rivals such as Amazon.com. 

By contrast, some companies blundered strategically, such as Express, which filed for bankruptcy last month and announced plans to close 100 of its 500 locations. The clothing chain, known for its workplace fashion, failed to connect with consumers after the pandemic ushered in working from home, Saunders said.

That put the company "firmly on the wrong side of trends and, in our view, the chain made too little effort to adapt," he said in a recent research note. 

Are consumers cutting back?

Recent data shows that Americans are still opening their wallets. Consumer spending in March  rose 0.8%  (the most recent data available), which economists say represents solid growth.

But some signs consumers are starting to fade amid a modest economic slowdown. On Friday, the University of Michigan's Surveys of Consumer sentiment index for May dropped to 67.4, the largest monthly decline since mid-2021. Confidence is dipping because of expectations for higher inflation and softer growth, said Jeffrey Roach, chief economist for LPL Financial, in an email.

"Uncertainty about the inflation path could suppress consumer spending in the coming months," he noted. 

Consumers have also spent down any remaining extra money they socked away during the pandemic, when federal stimulus checks and other benefits bolstered their bank accounts, Roach said in an earlier report.

"[T]here are potential risks to consumer spending," he said. "When households exhaust these accumulated savings, it could lead to a decline in discretionary spending."

Even so, some retailers are planning to open hundreds of new stores, CoreSight found. Dollar General, a rival of Dollar Tree, said it will add more than 800 locations this year, putting it at the top of the list of retailers opening new stores this year, according to the research firm.  

In second place is 7-Eleven, which plans to open more than 270 U.S. locations this year, followed by discount store Five Below, with plans to open 227 outlets, the analysis found.

• Family Dollar
• Dollar Tree

Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.

More from CBS News

Dow closes above 40,000 for first time, notching new milestone

What to know about getting a mortgage after bankruptcy

Looking to purchase a home? These U.S. cities are the most buyer-friendly.

Mysterious origin of the "tree of life" revealed

Business | Wawa opens first North Carolina store on the…

Share this:.

• Click to share on Facebook (Opens in new window)
• Click to share on X (Opens in new window)

Evening Edition

• Ports and shipyards

Business | Wawa opens first North Carolina store on the Outer Banks this week

“Being 6 years old at the time, those things stick out in my mind,” he said.

McCombs, now an Outer Banks resident, was on hand for a community preview Wednesday, a day ahead of Wawa opening its first store in North Carolina at 1900 N. Croatan Highway. He said he was shocked when he returned from the Vietnam War and saw the Wawa dairy in Folsom, Pennsylvania, had become a Wawa Food Market.

Today, the family- and employee-owned Wawa chain operates 1,050 stores in seven states and in Washington. The closest store to the Outer Banks was in Chesapeake.

The Kill Devil Hills Wawa, at the corner of Fourth Street and U.S. 158, begins a 10-year expansion into North Carolina that will include 90 stores across the state.

By the end of 2024, Wawa will have 10 stores in Kill Devil Hills, Rocky Mount, Elizabeth City, Greenville, Wilson, Goldsboro and Lumberton, said Jay Ratcliffe, the company’s area manager for northeastern North Carolina.

Next year, Wawa plans to open 11 stores in additional counties, including Robeson, Pitt, Cumberland, Onslow, Johnston, Pender, Nash, Brunswick and New Hanover.

Over the next eight to 10 years, Wawa plans to build and open six to eight stores per year reaching a total of 90 in the state. Wawa will invest more than $7 million per store and employ, on average, 140 contractors, the company said in a news release.

“It’s an aggressive build plan,” Ratcliffe said.

Once open, each store will employ an average of 35 associates with Wawa expecting to create more than 3,000 long-term jobs in North Carolina.

Wawa chose the Outer Banks for the first North Carolina store because of its proximity to Virginia, as well as the local “sense of community,” said Kim Dowgielewicz, director of store operations.

The 6,000-square-foot store has eight gas pumps, 52 parking spaces and two underground tanks. It is set to open at 8 a.m. Thursday with free shirts for the first 250 customers, a hoagie building contest between local first responders and charities and a ribbon-cutting at 10 a.m.

The chain got its name from the town where it opened its first dairy operation — Wawa, Pennsylvania — in 1902. Wawa is said to be a Native American word for Canada goose, and company officials played on that connection for the new store about a mile from the Wright Brothers National Memorial, where Wilbur and Orville made their famous first flight.

Thursday’s grand opening festivities will include a flight over the store in a nod to the area’s aviation history, Ratcliffe said.

More in Business

City Politics | Hampton’s short-term rental plan backed by planning commission, heads to City Council

Travel | Your 2024 credit card checklist for summer travel

Business | FDA said it never inspected dental lab that made controversial AGGA device

Business | Undergrads are unionizing, in a sign of labor’s resurgence

Trending nationally.

• Cambridge couple stranded in Brazil with premature newborn say they are stuck in ‘bureaucratic morass’
• Scottie Scheffler arrested at PGA Championship for traffic violation, returns to course hours later
• Ben Affleck spotted staying at separate home amid Jennifer Lopez split rumors
• ABC’s ‘Golden Bachelorette’ is 61-year-old Maryland grandmother
• Preakness 2024: From Mystik Dan to Uncle Heavy, get to know the eight horses in the field