The Basics of Opening a Successful Retail Store

This are some basic tips:

A) What you will need to decide:
• What type of store?
• What kind of retailer?
• Where will it be located?
• What will you sell?
• How big a store do you need?

B) What type of store?
• Department store: the small prototype of Wal Mart, Zellers, Canadian Tire,
• Specialty store: Any shop in which all items are related. Accessories, toys, etc.
• Boutique: Similar to a specialty store but offers more lifestyle than just one dept. May carry accessories, gift itemsand lingerie, but not as complete as a department store.
• Chain store: Having more than 3 of any one type of store
• Category buster: the small prototype of Toys R US, Staples OfficeDepot
• Discount Store: Buck or Two, Your Dollar Store With More

C) What type of retail theory?
• Low mark-up with high volume and huge selection. Example: a Discount Store
• Higher mark-up with lower volume but with full selection. Example: a Department Store.
• High mark-up with low volume and smaller selection. Example: a Boutique.

D) Where will it be located?
• Downtown business district
• Shopping center
• Strip mall
• Internet web site
• Other

E) To determine which products you want to sell, ask the 3 following questions:
• What is the need in your area?
• Can you supply the need?
• Can you make a profit selling this item?

Basic Merchandising Tips:

• Don't use rounders-except for clearance sales.
• Don't play the radio.
• Racks should be spaced far enough from each other to allow ample room for a person to get passed without touching the racks.
• Change store displays and windows every month and every week during the holidays.
• Use display hangers on face outs and 4 ways to display an outfit on the first notch.
• Use your own hangers and keep them all facing the same way.
• Always place your price ticket in the same place.
• When tagging, use a thin needle gun and only tag on the seam.
• Ceiling height should never be less than 14 feet.
• The floor should be a combination of tile and carpet.
• Do not use fluorescent lighting. Incandescent is best.
• Walls and tables sell. Build central interior walls to give the store additional prime selling space.
• Aisles should never be less than 4 feet wide and never more than 12 feet wide.
• Fixtures should not exceed 5 feet in height.
• Move goods around every two weeks.

Prime Space
• The prime real estate in your store is the 20-foot semicircle just inside the front door.

Sales and Markdowns
You must have a flow of goods in your store. It is a fatal mistake not to mark down items in your store.

4 types of sales
• In season 20%
• End of season 25% TO 50%
• Clearance 50% to 75%
• Liquidation sale

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