A typical grocery store feasibility study A typical grocery store is a retail store for household kitchen requirements such as pulses, rice, wheat, spices etc., household plastic cups, brushes, buckets and other household requirements such as detergents, sanitizing liquids, soaps, toothpaste, bathroom, toilet cleaners, etc. to open A successful grocery store, you should have enough groceries that you can sell. Grocery products depend on the size, capacity and money invested by the store owner to accommodate more or less in the grocery store. Sometimes the grocery store consists of vegetables and fruits in a certain amount to support the needs of the people.
Feasibility study of a typical grocery store
Grocery store investments start from anywhere and it depends on the store size, shape, capacity, infrastructure, etc. You need to look at fixed investments and floating investments. Grocery store cost in India includes:
Warehouse infrastructure including shelves, furniture, display racks, etc.
Equipment such as computers, cash registers, surveillance cameras, time clocks, etc.
Inventory of things and things for sale
salary for employees
Taxes, fees, permits, etc.
Insurance for shops and employees
Marketing and advertising costs
Materials for daily cleaning of the warehouse with materials
Electricity and other equipment such as AC, fan, lights, etc.
How do you start a grocery store?
An effective business plan for creating a profitable grocery business consists of the following steps:
The first is GST registration – if your annual turnover is less than Rs. 20 lakhs should then get your 15-digit GST registration number
Licenses – Get your food license, shop and facility registration, and entity registration. Visit the Licensing Authority office to get it done
Locations – Choose the appropriate location or locations for your store.
Infrastructure to invest in the store – after determining the location you need to make your store attractive and display the items in the store.
Customers – You need to make a small study of the customer’s preferences, living standards and market size.
Study your competitions – you need to understand your competition around your store and think about the products customers buy from you.
Vendors – Having relationships with a few vendors to deliver the goods you want to sell in the store.
Product Price – Set appropriate and competitive prices for the items in the store. Keep margins 25% to 40% for items, but not necessarily all items.
Staff for your store – Have some store staff or assistants from the vicinity of the store location help you around.
Online Presence – It is helpful to maintain your store’s online presence so that people can order items online from your store.
Advertising – You need to set up brochures and notices and spread the store presence all over the locations and even everywhere.
Digital Ready – Keep electronic weighing machines for measuring items along with computers ready for billing and equipped with digital payment methods like Credit/Debit Cards, Phone Pe, PayTM, Google Pay, etc for payment methods.
Setting up a grocery store in India has a lot of advantages and is a profitable business. Trends show that India will grow around 10% annually. The purchasing power of the people has increased tremendously during the last decade. This is the time for investors and entrepreneurs to start a grocery store with confidence by evaluating and understanding the various benefits and risks of a startup grocery store.