It would seem that it could be easier than opening a grocery store. A grocery store is perhaps one of the most popular options for small and medium-sized businesses in the trading sector. And there are reasons for this. After all, grocery stores are the best option for a profitable business, which is practically not subject to any adverse economic conditions. They are not afraid of crises, because food is not a luxury, but a “necessities of life”. Of course, consumer demand will vary depending on the economic and political situation in the country, but this is practically not reflected in the income of grocery stores.
However, this business has its flaws. These, for example, include a high level of competition in this segment. In large cities with populations of a million or more, large chain stores are in the first place, offering a huge selection of goods, not just grocery ones. Buyers prefer to buy not only food for a week, but also household chemicals, cosmetic products, hygiene products, etc. in one trip, they usually buy perishable products in their grocery stores such as milk, meat, poultry, and Confectionery "for tea." However, networkers also prevail in this area. Although experts argue with the experience of European countries that large retail chains cannot completely suppress and replace small retail stores. This is partly true, but one cannot but admit that the existence of retailers that have occupied almost all niches (both by location, volume, assortment and price category of goods) significantly complicate the lives of independent entrepreneurs.
A small number of independent grocery stores that are still preserved are either reduced to the size of convenience stores working late and selling mainly snacks and alcoholic beverages, or they choose a certain specialization (for example, selling pastries, semi-finished products with a minimum additional assortment of related products, or the bar format, which gives them the right to sell alcohol products bypassing the ban after 23 hours). In any case, most of them survive, mainly through the sale of cigarette-tobacco and alcohol products, rather than food. But for a small town that is not yet completely occupied by network retailers, an independent grocery store can be a great option. However, opening and running such a business will have several significant nuances.
To get started, choose the format of your future store. This can be a convenience store or a convenience store, a stall, a small or medium grocery store, a department store, a self-service store or a retail outlet. We give a classification of shopping formats for stores that operate in the food retail market. The largest of all formats is called "superstore." This is a huge store with an area of over 15, 000 square meters. The food group in such stores occupies less than half of the assortment.
In second place are hypermarkets (such as "Auchan", "Tape" or "Okay"). Hypermarkets have an area of 5-10 thousand squares. More than half of the assortment is reserved for food (they bring the greatest profit), and the rest is related products. Superstores and hypermarkets are usually located either outside the city or on the outskirts of the sleeping areas, since it is impossible to locate a store of such an area closer to the city center, and the rental price in this case is astronomical.
The next format is the "supermarkets" known to everyone, or city shops, which are usually located on busy highways and populated areas or at the intersection of large passenger flows. The area of such a outlet can reach up to two thousand square meters.
There are also “gastronomes” familiar to us from Soviet times. These are small shops with an area of up to 500 squares, the bulk of the assortment of which is occupied by perishable food products and daily demand products, as well as a small selection of goods for the kitchen and household chemicals. These outlets are often referred to as a “convenience store” or “at a corner”. As a rule, the prices in them are low, but nevertheless for some groups of goods they can be significantly higher than, for example, in a hyper- or even a supermarket.
There are so-called "discounters". The latter are usually located on the outskirts of the city or completely outside it. This is a completely separate and unique business format that has its own specifics.
Finally, there are small shops of narrow specialization with an area of up to 90 square meters. meters that sell specific products (meat, fruits and vegetables, bread products, etc.). Until recently, such a format was distributed mainly abroad. But recently, a high level of competition among ordinary grocery stores and chain retailers has led to the emergence of such "home" shops in many Russian cities (still mostly large).
If you are new to this business and / or do not have a large start-up capital, then the optimal format of work at the first stage is a stall or a small grocery store. Accordingly, the option of trading will also depend on the chosen format - either with open access to goods (self-service), or because of a counter with the participation of the seller. Revenues in self-service stores are significantly greater than in closed-type stores. This system is most relevant for a significant cross-store. It allows you to serve up to 3000 customers in a 15-hour business day.
On the other hand, the last option is preferable for a small shop, otherwise frequent theft and vandalism cannot be avoided. There are also combined options when access to expensive and small goods is limited, and the calculation of popular and inexpensive goods is made open, but closer to the checkout so that the seller and the cashier (usually all in one person) can control this zone.
We have decided on the area and format, but you still need to identify your potential customers. In this case, we build on the assortment of the future store, the price category of goods and its location. A good location for a grocery store is over 80% of its future success. The best place is in a large sleeping area, where residential buildings, educational institutions, leisure parks, etc. will be located nearby. But finding a suitable place will not be easy. Most likely, all of them are already occupied by your direct competitors. Take a look at the developing areas. Perhaps, at first, trading in new buildings will not bring tangible profits, but over time, your income will increase, and you will have a good advantage over late competitors.
When choosing a room, the issue of area does not come first, as is the case with other retail outlets. It is better to rent a small area, but in a good place, than a spacious room in the "backyards" or next to the next "Magnet". If you intend to trade, including alcoholic beverages, then certain requirements apply that will have to be taken into account. For retail facilities that sell only beer, there are no space limitations. However, if there are other types of alcoholic beverages in the assortment of your store, you will have to select premises of the appropriate area. According to the Federal Law of August 18, 2019 No. 218-ФЗ “On Amending the Federal Law“ On State Regulation of the Production and Turnover of Ethyl Alcohol, Alcohol and Alcohol-Containing Products ”and certain legislative acts of the Russian Federation and invalidating the Federal Law“ On Restrictions on Retail Sales and consumption (drinking) of beer and drinks made on its basis ”(as amended on 08/18/2019), para. 1, p. 6, companies engaged in the retail sale of alcohol must have leased or operated stationary retail facilities, as well as storage facilities with a total area of 50 sq. M. meters. For a store in the countryside, you can pick up a room with an area of half as much - from 25 square meters. meters.
In addition, if such points are located within the city, they will need to acquire cash registers. However, you can do without a cash register if you report to the tax authorities on a single imputed income tax system. In this case, you can issue commodity checks to your customers confirming the fact of receiving money from them.
Special requirements apply to the location of the store where alcoholic beverages are sold. At present, it is forbidden to sell alcohol in the territories of educational, children's, medical, cultural and sports institutions and in the adjacent territories, in crowded places, at gas stations and public transport stops, military facilities, at railway stations and at airports, at wholesale and retail markets.
Pay attention to the availability of the necessary communications, water supply, energy supply, ventilation, etc. in the premises of your choice. The specific requirements for the premises used as a food store depend on its size, location and other factors. Therefore, before signing a lease agreement, be sure to find out the requirements for a particular room from the relevant regulatory authorities. These include the regional division of Rospotrebnadzor (in terms of compliance with sanitary and epidemiological requirements and requirements for protecting consumer rights); fire department (in terms of compliance with fire safety requirements); internal affairs bodies; local authorities (in terms of compliance with environmental laws, in particular garbage collection, disposal of fluorescent lamps, etc.; an enterprise providing water supply and sanitation services.
If the room as a whole is suitable for your purposes, then you can conclude a lease agreement and proceed with cosmetic repairs. The latter does not have to be expensive at all, but it is worthwhile to show imagination and bring something from yourself to its interior. Your store should be bright, beautiful and comfortable.
Even at the stage of choosing a room, deal with the legal issues. You will need to register as an individual entrepreneur or legal entity (limited liability company). The fundamental difference between these two options lies in the fact that in the event of debt obligations all the personal property of the entrepreneur - IP can be called for their execution. The owner of the LLC is solely responsible for the authorized capital of the legal entity. In addition, when registering an LLC, a legal address is required, which can also be the founder’s home address. In any case, you should not buy an existing LLC, otherwise there is a great risk of taking it already with the debts of the former owner. If you do not have experience in designing an IP or LLC, you can contact the intermediary company for help. However, the IP opening procedure does not require much time and money. After registration, you will need to register with the pension fund, submit documents to the regional statistics, choose a tax form and register with the tax. Then you will need to obtain permits from the SES, the fire department and the other authorities mentioned above.
While you are preparing documents, do not waste time - purchase trading equipment and choose suppliers of products. Trading equipment is of three main types - cash, refrigeration and dry (cabinets and racks). The choice of equipment depends directly on the planned turnover (usually it takes up to forty percent of the money spent on opening a store to purchase equipment). To do this, make a simple calculation: divide the estimated average daily turnover of funds by the average price of the goods. As a result, we get a certain number of units of goods that will be sold per day. This figure is multiplied by the average area that the product occupies on the shelves. Then, the number of shelves required for the layout of the goods is calculated.
The most expensive equipment is refrigerators, which come in various models. Built-in refrigeration units have two main disadvantages: they contribute to an increase in temperature in the room where they are located (especially this disadvantage is felt in the summer), and can become a source of unpleasant odor. If you prefer the self-service format, it is best to choose remote equipment. This is not the cheapest option, but such costs are justified. Part of the equipment can be purchased ready-made, part will have to be taken on order. For example, retail stalls will most likely have to be made to individual sizes. You will also need a cash register, electronic scales (mechanical already last century and do not inspire confidence among customers), as well as additional equipment - knives, cutting boards or slicers (cutting machines). Please note: if in your store some of the goods will be sold as slices, then knives with cutting boards will be enough. However, experts recommend trying to mechanize the labor-intensive process in organizing trade, so do not save on commercial equipment. It is better to give preference to slicers, which will greatly facilitate and accelerate the work of your sellers. Depending on the quality and cost of the selected equipment, its purchase will require about 100-150 thousand rubles (based on a small store).
The advice to turn to the services of merchandisers looks strange for the owner of a small store in the “at home” format. However, your profit substantially depends on the correct placement of goods on the shelves of your store. Of course, you can learn the basics of merchandising and independently engage in the calculation of goods. Make sure that the price tags are large and easy to read, and the product itself is clearly visible and grouped. Do not forget to monitor the expiration dates of quickly spoiling products. The standard trick of any grocery store is to display dairy products with an expiring shelf life forward and fresh ones backward. This rule applies to self-service stores. When trading because of the counter, the seller delivers the goods to customers. However, do not forget that the success of small shops is not so much that you can avoid the delay as much as possible by “quickly selling it off your hands”, but rather in an individual approach. Sellers of such stores (among which their owners are often found) know most of their regular customers by face and recommend to them that it’s worth taking products, and which is better to refuse from buying. Sometimes it’s better to write off not the freshest product than to spoil your reputation.
The product itself is purchased either directly from the manufacturer or at wholesale stores. As a rule, small grocery stores choose the latter option. Although the prices are lower for manufacturers, the minimum lots are much larger and the range is poorer than for wholesalers. Carefully choose your suppliers. They must be reliable and tested. You should not contact companies unknown to you, even if they offer extremely beneficial conditions for cooperation. Agree in advance with suppliers about the terms of payment, the delivery schedule and the possibility of returning unsold goods.
Even at the stage of thinking about the concept of your grocery store, do not forget to draw up a business plan with an article-by-article description of all estimated expenses. Do not neglect this, even if you are not going to take loans, loans, seek investors ... A well-designed business plan allows you to evaluate initial expenses and plan income, evaluate profitability and payback periods. Special attention is given to the column “contingencies”. Even with a lot of experience, there is always a chance that you will go beyond your budget. For unforeseen expenses usually pledged from 10% of the amount of starting capital. It’s better if this money isn’t useful to you and you put it into the development of your own business than you will then run to the bank in case of force majeure for a loan or borrow money according to your friends.
Special attention deserves the issue of staff recruitment. Find a seller of labor will not be. But to find a conscientious, honest, reliable, knowledgeable and polite employee is a practically impossible task. Whatever good impression a potential employee makes on you, do not leave him at one point at first. There are frequent cases, in the very first days of work a new seller left the store without warning and with all the daily revenue. However, even working sellers can often grab some small things without notifying you. Ideally, the sellers working for you should be experienced, polite, with a neat and pleasant appearance. Mandatory availability of sanitary books, which give the right to work with food products.
If you do not want to constantly incur material losses, then make your rule “trust but verify” your motto. Install a video surveillance system. It is not cheap, but, believe me, these costs are fully justified and will help you avoid much larger losses. Another important operation is the accounting of goods. It is best to do it by electronic registration using a barcode scan. However, for small stores, these costs can be unbearable, so at first you will have to do with the usual revisions and keeping records of goods manually. If your store is located in a large city, then the opportunity to pay for purchases with credit plastic cards will be useful.
Special attention deserves the issue of advertising. In many articles on the issue of how to open a grocery store, it is recommended that "arrange some kind of action with gifts and discounts, make a loud statement about yourself, come up with something original." Creative is, of course, good, but not in our case. With your shares you will only attract onlookers and pensioners. Your main target audience is working people who return home in the evenings and who do not have the time and ability to often go shopping, so your promotions with balloons and presents in the daytime will be irrelevant. In addition, people come to such stores for “essential goods”. For them, the main convenience of location, freshness of products and low prices. And discounts and gifts in this case will not become the main incentive to make purchases and will not turn your "minute" visitors into regular customers.
The best advertisement worth investing in is a large signboard that catches your eye, as well as a list of the main assortment in the window. Oddly enough, this works no worse than standard ways to increase customer loyalty. Also, advertisements about "promotional" goods, which are currently coming with discounts, have proven themselves well. Please note: usually products for which temporary discounts are announced are perceived by buyers as low-quality or with an expiring expiration date.
So, we calculate the initial costs. Renting a room, depending on the retail space and region, will cost from 20 thousand rubles, about 100 thousand rubles will be required for equipment, including refrigerators, a cash register will cost 15 thousand rubles, scales, inventory, etc. - 25 thousand rubles. Add to this the cost of purchasing the initial batch in the amount of 150 thousand rubles. The minimum starting capital depends on the location, on the assortment, on the area of the store, the condition of the room. A lot of money can go to repair the premises, so these costs also need to be taken into account. In general, about 200 thousand rubles will be required to open a small grocery store in a small city. In large cities, this amount will be higher due to the higher cost of rent.
At the usual level of profit margin in manufacturing retail, as a rule, is about 25%.
Sysoeva Liliya (c) www.clogicsecure.com - a portal to small business business plans and guides08/18/2019