You can enter the retail grocery market in different ways: open your own store or buy a franchise from one of the major chains. The amount of initial investments depends on which way you have chosen. Opening a franchise of its own regional chain of stores will cost from 250-700 thousand dollars to 3-5 million dollars, which will pay off in a year or three. Opening a small store near the house will cost much less, the minimum limit is $ 50 thousand. Profitability is 23-25%.
Classification of supermarket formats
According to the Italian supermarket classification system, the first and largest format is the so-called superstores. These are giant stores with an area of over 20, 000 square meters. m, in which the food group occupies at least 50%.
The next format is hypermarkets, such as, for example, Auchan. They are usually located outside the city and occupy an area of at least 4, 000-10, 000 square meters. m. More; 70% of the production volume in them is made up of food products, on which the main turnover is made; 30% are related.
The third format is a supermarket, i.e. City store, located on a busy highway, in a densely populated quarter, at the intersection of major passenger flows, near the metro. The more profitable the place, the better it works. Area - 500–2000 sq. m
The next step is what we call a deli. Institutions of this type are called “convenience store”, “corner store”. These are small shops with an area of up to 500 square meters. The main assortment consists of food products, a significant part of which are perishable and daily demand products.
The fifth format is the discounter. Often this word is interpreted as a cheap store.
And the last option. Little popular with us and common in the West. These are small, highly specialized shops selling, for example, herbs or meat, and occupying an area of not more than 60–80 sq. m
Statistics show: if you have to get to the supermarket for more than 10 minutes, many will prefer to make a purchase near the house. Therefore, the opening of a "store on the corner" bodes good profits. Unless, of course, you choose the right premises and competently build all the business processes.
But finding a suitable room in Moscow is not so simple. Entrepreneurs prefer to buy existing stores. The cost of the store is determined by its location. So, for example, a grocery store in the Pokrovka area, located on its own premises, costs about 900 thousand dollars, and a similar one in Mitino renting a room costs only 90 thousand dollars. The average cost of the store is approximately 230 thousand dollars.
Rental rates vary depending on the location of the property. The cost of one kV. meters per year - from 700-850 dollars / sq. m per year in the zone of the third transport ring, and reaches 2000–2300 dollars inside the Boulevard. In residential areas, rent is much cheaper - from 180-250 dollars per 1 sq. Km. m in a separate building up to 200-380 dollars / sq. m per room located in a residential building.
The location of the future store is easy to choose. The main condition for it to be convenient is that there are driveways and parking. The place must be passable, it’s good that roads and routes pass nearby or, in extreme cases, pedestrian paths from a stop to a housing estate.
But before making a final decision, it is worth conducting a marketing research. Specialists will help you determine which hitherto empty niches exist in the area, what you should specialize in, which group of clients is not covered by the attention of large networks, how to build an assortment, and develop a concept for marketing and promotion.
Very important advice from experts on the selection of commercial equipment. One of the most common mistakes of non-core investors is the mismatch of the amount of equipment purchased to the scale of the store. A consulting agency will help to carry out all the necessary research and give recommendations. This service on average costs from 3 to 10 thousand dollars. If the customer asks to draw up a business plan, he will have to pay 20-30% of the cost of the study.
Buyers & Products
There are three groups of potential consumers: the first is people who make impulsive purchases, the second group - those who stock up on a large number of basic products at the supermarket on weekends, and run into the “convenience store” for milk and bread, and the third - people who make everything purchases in the store closest to the entrance. These are, as a rule, pensioners, working people who do not have enough time for normal shopping, people who do not have a car. The first step is to choose a group of customers that you will be guided by.
The next stage is the range and prices. It is necessary to analyze which goods are bought up faster, for which goods there is an increased demand. The assortment of your store should, on the one hand, repeat the set of products of competitors, include the main product groups. On the other hand, to have rare product groups that neighbors do not have. In addition, you can safely bet on products not represented in other stores, for example, if a competitor actively sells meat, focus on fresh fish, etc. The general assortment of the average store is approximately 3, 000 items. The average bill is 100-150 rubles.
A lot depends on the assortment specialization, including the choice of equipment.
First of all, you need to calculate how many customers will go to the store daily. This is necessary in order to determine the number and type of POS terminals to be purchased. If the area is rich, and each buyer will leave a tidy amount at the checkout, then you need to purchase a POS terminal with a large receiver, and if the main buyers of the store are grandmothers who go for bread and milk, then you need a POS terminal that allows you to pack as quickly as possible avoiding queues.
One of the ways to organize a store in which there are no queues is a minimarket.
Trading equipment is of three types: refrigeration, cash registers and the so-called dry, i.e. shelving. It is selected based on the calculation of the planned turnover: the estimated daily turnover needs to be divided by the average price of the product, it turns out the number of units that you will sell daily, multiply this figure by the theoretically averaged area occupied by the goods on the shelf, in the end it will turn out how many shelves are needed.
When choosing refrigeration units, it should be borne in mind that the built-in refrigeration equipment raises the temperature in the room and can become a source of unpleasant odors. Therefore, remote equipment, which is not cheap, is preferable. But in the struggle for the buyer, each seemingly insignificant nuance can be decisive.
Particular attention should be paid to the storefront, because this is a free store advertisement. It should be bright, readable and clearly talk about what you offer customers. If the bet is on low prices, then the shop window should be made ascetic, with a clear message on what goods are given a discount today. If the store is positioned as a gastronomic shop where only the freshest and best products are offered, then the showcase should be decorated using natural tones, materials, etc.
Supermarket Business Processes
A modern retail company cannot start working without clearly defined and organized business processes. For a small store, its owner can register them himself. For a larger point, about 200 square meters. m it makes sense to invest in the purchase of regulatory rules for retail, which cost 1-2 thousand dollars.
Retail is a very peculiar business. The degree of contact between staff and the client is maximized, and if the seller makes a mistake, it instantly provokes a response from the people who came to you. Both theft and the banal damage to goods can harm retail. And the level of damage cannot be compensated for by any penalties.
Therefore, it is necessary to rebuild technology in advance that will help minimize all risks. It is imperative to register all business processes, draw up job descriptions, and labor regulations.
The next stage is the recruitment of employees. It is advisable to conduct sales training with sellers before the store opens, introduce them to merchandisers.
For those who prefer to enter the market under the brand name of a well-developed retail network, large domestic chains offer franchising.
One such company is Perekrestok.
They prefer to work with someone who has retail experience and who knows what it is. Another prerequisite is reputation, business and financial. High requirements for the location of shops. If the place is not very interesting, then cooperation is refused.
If a ready-made store, which needs only a sign, an advertising campaign, replacement of computer-cash equipment, connects to the network, asks for cooperation, then the minimum one-time franchise fee will be from $ 200 thousand. If the store needs to be completely reconstructed and all equipment changed, then this is about $ 1 million.
A more “economical” franchise option is offered by the Kopeyka network.
They provide a complete package of standards, including construction, equipment, etc. include franchisees in their system of discounts on the purchase of equipment. The amount of investment in such a standard store, excluding the cost of the property and taking into account the complete reconstruction, repair, equipment, is about 500 thousand dollars. A one-time franchise fee has not yet been taken, but is planned in the future.
Pyaterochka does not distribute the franchise for individual stores, but sells the right to open entire networks of 20-30 outlets in the regions. The cost of the technology is from 500 to 750 thousand dollars, depending on the region that acquires it. Royalty is minimal. Investment volume - from 3 to 5 million dollars for 2 years. And then the network goes out on its own funds. As a rule, it is a network of 30 stores, with its own training center and storage facilities.
Based on an article by Olga Borodina in the Director Info magazine
* The article is more than 8 years old. May contain outdated data