High competition from large chain grocery stores often forces owners to close small stores. However, we can see other examples where a small grocery store successfully competes with large, nearby supermarkets.
What is the reason for such a high survival rate of small businesses among large retail chains?
The success of a grocery store business idea very much depends on the results of a properly conducted marketing research.
Moreover, such market research must be carried out continuously in order to respond quickly to market changes.
It is much easier for a small grocery store to quickly change the range and prices of products in order to win in the fight for the buyer.
Marketing research of a grocery store must begin with determining the location of the future store. The location is extremely important for future trade turnover and, accordingly, income generation.
It is clear that a small store cannot compete with a large supermarket if it is located in a neighboring building. However, competition will be quite successful if the store is located near a public transport stop, or in the depths of a microdistrict.
Of course, in order to buy delicacies or to make purchases of goods for the week, most people will go to the supermarket. However, buying everyday products such as bread, milk, vegetables, drinks, and so on is much more convenient on the way from work close to home.
The convenient location of the grocery store is half the success of its future activities.
When choosing the premises of the future store, it is necessary to take into account the need to comply with the requirements of fire and sanitary control. In addition, the premises should provide for the presence of a client room, as well as a large enough pantry so that you can quickly replenish stocks of hot goods.
The second step in grocery store marketing research should be to study the range of products offered by competitors.
A small grocery store should not chase after a variety of assortment and put on display delicacies that are rarely bought by ordinary visitors.
It is much more important to ensure the necessary stock of the most popular everyday goods. However, at the same time, it is necessary to accurately calculate the volume of purchases in order not to be left with unsold goods with a short shelf life closer to the closing of the store. To do this, it is necessary to periodically analyze sales statistics using trading software.
When opening a small convenience store, it is also necessary to determine its mode of operation.
Such a store receives the main income during the movement of residents of the microdistrict to work and, especially, from work. The competitive advantage of a small store can also be round-the-clock work.
It is very convenient for residents of the microdistrict to always have a retail outlet at hand where you can buy goods that you forgot to buy during the day. However, keep in mind that running a convenience store can take it beyond the margins of profitability.
When calculating the initial costs of opening a grocery store, it is necessary to take into account the costs of repairing and equipping the premises, purchasing retail equipment and software, obtaining permits, including for the sale of alcoholic beverages, training and medical examinations for staff, as well as the purchase of initial supplies of products for start of work.
By the way, many novice entrepreneurs often forget about the last point of the listed costs. As a result, a newly opened store often impresses customers with empty shelves and loses its reputation for a long time.
The running costs of a grocery store will be the cost of renting the premises, utilities, staff salaries, purchasing and shipping products, and advertising costs, especially at the initial stage.
You can order exact calculations in relation to your specific conditions, as well as a ready-made business plan on our website.