Wine shop business plan

* The calculations use the average data for the World

1. Summary of the project

The goal of the project is to open a wine store in a city with a population of up to 500 thousand people for retail trade. The project is designed to meet the demand of residents with various income levels for quality wine products of domestic and foreign production.

The assortment of the store is 1500 SKU. The proportion of wine in the assortment, including still, sparkling wine and wine drinks - 65%. The share of strong alcoholic beverages is 15%, related products - 20%.

The financial calculations of the business plan were made for the 5-year period of the store’s activity, taking into account the average bill in the amount of 2300 rubles. and the factor of seasonality of sales. Break-even period is 8 months. The payback period of the project is 29 months.

Investments in the project - 4.6 million rubles. To implement the project, it will be necessary to attract 2.5 rubles. equity, 2.1 rubles. - borrowed. Loan term - 36 months. Interest rate - 18% per annum. The delay in the payment of the first payment is 3 months. The volume of monthly payments is 104.5 thousand rubles.

Key financial indicators of the project

Discount rate, %

20

Net present value (NPV), rub.

5 596 380

Project net profit, rub.

322, 000

Return on sales, %

6.21

Payback period (PP), months

29th

Discount payback period (DPP), months

35

Profitability Index (PI)%

1.22

2. Description of the industry and company

Wine is the third most popular alcoholic beverage in Russia, giving way to beer and alcoholic beverages. According to Rosstat for 2015, retail sales of wine per capita in 2015 are at 3.95 liters per year. If we talk about all the wine products, including sparkling wines, champagne, fruit wines and other wine drinks, the consumption level is 7.7 liters per year. In this indicator, Russia is significantly inferior to Western countries, where consumption is estimated at 40-55 liters, so the market is considered unsaturated. Today, the United States, France, Italy, and Germany are the leaders in wine consumption. Most of the Russian market, about 80%, is accounted for by imported products, domestic wines in the consumption structure of Russians occupy a share of 20%.

The goal of this project is to open a wine store in a city with a population of up to 500 thousand people for retail trade. The project is aimed at satisfying the demand of local residents of various income levels in quality wine-making products of domestic and foreign production. The assortment of the store will include 1, 500 items of alcoholic beverages, which will include sweet, semi-sweet, dry and semi-dry wines, strong alcoholic drinks and related products. Imported products will be represented by 9 manufacturing countries.

The wine store will be managed by the director-administrator, who will be in charge of sales staff (sales consultants), support staff (movers, cleaners) and accounting. The form of ownership of the store is LLC (limited liability company).

3.Description of goods

Wine is one of the most popular spirits and does not need a special presentation. From ancient times, wine was considered a noble drink, and remains so to this day. Unlike other alcohol, such as beer or spirits, wine has a more positive image in the public mind and carries with it a whole layer of wine consumption culture, which is successfully used in the concepts of specialized stores.

This store will present both inexpensive table wines, as well as mid-range products, as well as premium wines. The assortment of the store will be 1, 500 SKU and will be targeted at customers with a different budget. Wine products will account for 65% of the assortment (still and sparkling wines), 20% will be related products and accessories for opening wine, serving, tasting, storing wine, 15% - strong alcoholic drinks. In the store it will be possible to purchase both domestic products and drinks from France, Italy, Spain, Germany, Portugal, Chile, Argentina, South Africa, Georgia. The list of goods and the price range of products are presented in Table. one.

Table 1. List of goods

No.

Product Group

Cost, rub.

one

Wines of Russia

400-2500

2

Wines of France

1000-30000

3

Wines of Italy

550-40000

four

Wines of Spain

490-8000

five

Chile Wines

290-2500

6

Wines of Argentina

800-7600

7

Wines of Georgia

700-2800

eight

German wines

600-6500

9

Wines of South Africa

800-4000

ten

Portuguese wines

700-6500

eleven

Strong alcoholic drinks (cognac, whiskey, brandy, tequila, rum, calvados)

500-30000

12

Related products and accessories (Glasses for wine and champagne, glasses for whiskey, corkscrews, decanters, corks, etc.)

100-15000

The average store check will be 2300 rubles. Gross margin will be around 60%. The smallest mark-up will be made on those positions that are available in the stores of competitors.

Storage of products will be organized in accordance with the necessary conditions for temperature and humidity. In particular, wines, wine drinks and champagne are stored at a temperature of 5-20 ° C. With a relative humidity of not more than 85%.

For the retail sale of alcoholic beverages and wine, a license will also be required, which is issued by the regional Ministry of the Consumer Market. The license is issued only to organizations with an authorized capital of at least 1 million rubles. The cost of the license is 65 thousand rubles. for 1 year. The license is valid for up to 5 years. Also, for opening, you will need permission from the SES and the conclusion of the State Surveillance. A list of documents required to obtain a license is given below.

1. Application for a license.

2. Copies of constituent documents certified by a notary.

3. A copy of the document on state registration of the organization.

4. A copy of the document on registration of the organization with the tax authority.

5. A copy of the document on payment of the state fee for the provision of a license.

6. A document confirming the applicant's presence of the authorized capital.

7. A document confirming that the applicant has stationary trading facilities and storage facilities (property or rental for a period of more than 1 year).

4. Sales and marketing

In recent years (from 2010-2011), a decrease in demand for wine products has been recorded in Russia. According to the results of 2015, the volume of demand for wine, according to BusinesStat, amounted to 865 million liters, which is 4.6% less than in 2014. In general, demand is declining due to higher prices for finished products. The increase in prices is primarily due to rising excise rates and higher prices for imported wine materials. In particular, from 2011 to 2015, the average price of wine increased by 52% from 250 rubles. up to 379 rub. per liter. At the same time, sales for this period decreased by 17.8% from 1, 050 million liters. up to 862 million liters

The most popular among the population are table wines. They accounted for 73.3% of sales (632.2 million liters) of the total. Sparkling and carbonated wines occupy the second position with a share of 22.2% (191.2 million liters). Another 4.5% of sales came from special wines (38.8 million liters). According to BusinesStat analysts, in 2016 the demand for wines will continue to decline, however, in subsequent years, consumption is expected to increase to the level of 1, 054 million liters. by increasing domestic sales.

The main consumer of wine is a population of 25 to 50 years old with an average and high income level and, as a rule, with a high level of education. Unlike beer and strong alcohol, wine is in demand among the female part of the population: the percentage of female buyers can reach 40-50%. Often, customers go purposefully to wine boutiques and already have an idea of ​​what kind of wine (or its characteristics) they need. It should be noted the fact that wine shops work with a large number of regular customers.

The peculiarity of consumer preferences of Russians is that the first place is given to semi-sweet and semi-dry wines, while there are much fewer fans of dry wines. At the same time, about 65% of consumers prefer red wine to white wine. The main criteria for the quality of wine in descending order are: taste, brand awareness (brand), country of origin, price, grape variety, bottle and label design. Mostly consumers give preference to goods in the price category of about 1000 rubles. and less up to 5000 thousand rubles. The main difficulty in choosing a wine by a consumer is the lack of information on how to make the right choice in favor of a product in the conditions of all the variety that is present on the shelves. Therefore, one of the key points for the success of sales, in addition to the wealth of the assortment itself, is the qualification and professionalism of sales staff.

Among the main competitors of the store are specialized wine shops (including branded ones), wine boutiques and wine shops of the city. Each store strives to stand out from the rest by the uniqueness of the assortment, which can be expressed in the presence of rare or collection wines, as well as in format and positioning. In particular, wine tours, sommelier courses, thematic events and more can be offered to a premium audience.

Other competitors are grocery stores in the “at home” format, grocery super and hypermarkets, alcohol supermarkets and alcohol discounters. The main competitive advantage in comparison with them is the breadth of the wine assortment. At the same time, at convenience stores and grocery supermarkets, a large share of the product may be occupied by inexpensive domestic-made wine (up to 20-25%), more aimed at the gastronomic interest of the buyer, while in wine shops the percentage of Russian wine can be from 0 to 10%. An approximate assessment of the wine assortment in the mentioned trade formats is given in Table. 2.

Table 2. The range of wine drinks in retail outlets of various formats

Format

Range of alcohol, SKU

Share of wine assortment, %

Price category

Shop format "at home"

70-150

35

Below average, average

Supermarket / Hypermarket

700-1000

40-50

Below average, average, average +

Supermarket

300

20

Below average, average, average +

Alcoholic Discounter

1000-1500

40-60

Below average, average, average +

Since the store will be specialized, in addition to the assortment, much attention will be paid to the sales process. Professional sales consultants (kavists) will be involved in this work to help the buyer decide on the choice of wine. A wine catalog with prices and basic characteristics will be available on the official website of the store.

In the process of activity it is planned to use all of the following types of advertising:

- Internet advertising (advertising on the official website, contextual advertising in Internet search engines);

- outdoor advertising (outdoor sign);

- handout advertising (printed catalogs and leaflets).

When conducting advertising campaigns, it is planned to adhere to the legal standards relating to the advertising of alcoholic beverages (Article 21 of the Federal Law "On Advertising"). According to them, an advertisement for a wine store should contain information exclusively about the store itself, but not about the products sold. Also, images of people and animals, including those made using animation, will be excluded from advertising. In this case, the advertising message will be accompanied by warnings about the dangers of excessive consumption of alcoholic beverages.

5. Production plan

The location of the liquor store is the first line of houses on one of the busy streets of the city (densely populated area). The required area for the implementation of the project is 85 square meters. meters. All stationary facilities are brought into compliance with the requirements of the Federal Agency for Alcohol Regulation and Federal Laws No. 171-ФЗ, No. 34-ФЗ. In particular, the store’s warehouse is equipped in a room isolated from office and utility rooms by main walls or temporary building structures, equipped with supply and exhaust ventilation, heating system, measuring devices, racks or pallets with a height of at least 15 cm from the floor. The lease agreement is established for a period of at least 1 year.

Funds invested in real estate and equipment - 1, 370, 000 rubles. Of which 550 thousand rubles. will be required to repair the premises, 820 thousand rubles. - to equip the store. The cost of equipment is presented in Table. 3.

Table 3. Equipment costs

No.

Name

price, rub.

Quantity, pcs.

Cost, rub.

one

Wine rack

12, 000

sixteen

192 000

2

Two-sided islet

40, 000

2

80, 000

3

POS system

105, 000

one

105, 000

four

Decor Elements

20, 000

one

20, 000

five

Plumbing

40, 000

one

40, 000

6

Outdoor sign

20, 000

one

20, 000

7

Counter

13, 000

one

13, 000

eight

Supply and exhaust system

250, 000

one

250, 000

9

Measuring instruments

10, 000

one

10, 000

ten

Lighting equipment

40, 000

one

40, 000

eleven

Counter

20, 000

one

20, 000

12

Other

30, 000

one

30, 000

Total:

820, 000

The liquor store staff will include 6 full-time staff, including the administration (administrator, accountant), sales staff (sales consultants), support staff (loader, cleaner). The staffing and payroll are given in Table. four.

Table 4. Staffing and payroll

No.

Position

Number of people

PHOT, RUB

one

Administrator

one

35, 000

2

Accountant

one

20, 000

3

Shop assistant

2

20, 000

four

Loader

one

15, 000

five

Cleaning lady

one

15, 000

Total:

125, 000

Deductions:

37, 500

Total deductions:

162, 500

The costs of the main period will include: rent and utility bills (80 thousand rubles), payroll deductions (162.5 thousand rubles), loan repayments (104.5 thousand rubles), purchase of products, advertising (about 20 thousand per month), spending on security and other expenses. According to rough estimates, it will take 8 months to break even. With these indicators, the business will pay off in 29 months. Five-year financial indicators are presented in detail in Appendix 1.

6. Organizational plan

The implementation period for the preparatory period will be 90 days. It will take a lot of time to draw up the necessary documents and obtain a license to trade in alcohol (the term for considering a license is 30 days). The management of the wine boutique will be entrusted to the administrator, who will be involved in the development of the store, achieving the sales targets, providing training and personnel control, document management and assortment management. Responsibilities of sales consultants will include customer consultations on drinks, merchandising, work with KKM, work with the customer base, acceptance of goods, participation in inventories.

7.Financial plan

Investments in the project will amount to 4.6 million rubles. Of this amount, 1.37 million rubles will be needed for the repair and equipment of the premises, 2 million rubles for the formation of the starting assortment, 900 thousand rubles for working capital, 330 thousand rubles for registration and licensing procedures. To implement the project, it will be necessary to attract 2.5 rubles. equity, 2.1 rubles. - borrowed. Loan term - 36 months. Interest rate - 18% per annum. The delay in the payment of the first payment is 3 months. The volume of monthly payments is 104.5 thousand rubles.

The financial indicators of the project for a five-year period of work, taking into account seasonal sales declines and an average check in the amount of 2300 rubles. are given in Appendix 1.

8. Evaluation of project effectiveness

Upon reaching the planned sales volumes, the payback period of a wine store will be 29 months. The projected profit by the end of the first year of operation will be 150 thousand rubles., Later in the peak months of sales it is possible to achieve indicators of 600-900 thousand rubles. Return on sales will be 6.21%. These and other project performance indicators are shown in Table. four.

Table 4. Project performance indicators

No.

Indicator

Value

one

Discount rate, %

20

2

Net present value (NPV), rub.

5 596 380

3

Project net profit, rub.

322, 000

four

Return on sales, %

6.21

five

Payback period (PP), months

29th

6

Discount payback period (DPP), months

35

7

Profitability Index (PI)%

1.22

9. Risks and warranties

A description of the risks that the store may face at the preparation stage and in the process of work is given in Table. five.

Table 5. Assessment of project risks and measures to prevent their occurrence or their consequences

No.

Risk

Probability of occurrence

Severity of consequences

Prevention measures

one

Delayed opening dates, growth in starting investments

low

average

Using the services of lawyers in paperwork

2

Cost of imported products due to weakening

average

average

Increased wine purchases from producing countries

3

Competitor growth

low

average

Expansion of assortment, revision of pricing policy, work schedule, development of programs that increase customer loyalty

four

Sales decline due to reduced solvency

average

average

Revision of assortment offer, development of programs that increase customer loyalty

10. Applications

ANNEX 1

Key financial indicators of the project in a five-year perspective

(c) www.clogicsecure.com - a portal to small business business plans and guides

08/18/2019

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