business plan for grocery store

Grocery Store Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Grocery Store Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Grocery Store Plan Here

You’ve come to the right place to create your grocery store business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their grocery stores.

Business Plan Sample for a Grocery Store

Below are links to each section of your grocery store business plan template:

Next Section: Executive Summary >

Grocery Store Business Plan FAQs

What is a grocery business plan.

A grocery business plan is a plan to start and/or grow your grocery business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your grocery business plan using our Grocery Business Plan Template here .

What Are the Main Types of Grocery Businesses?

A grocery store can either be small scale or large scale. Small format groceries are usually small, family-run stores like a neighborhood store, convenience store, or health food store. Large scale groceries, on the other hand, are supermarkets that offer a wider variety of products and goods sold.

What Are the Main Sources of Revenues and Expenses for a Grocery Business?

The primary source of revenue for grocery stores is its food, beverage and alcohol sales.

The key expenses for grocery businesses are wages, rent or mortgage, cost of products sold, and utilities. Among the other expenses are insurance, equipment maintenance, and marketing. 

How Do You Get Funding for Your Grocery Business Plan?

Grocery stores are typically funded through small business loans, personal savings, credit card financing and angel investors. Inventory financing is also common for part of their funding needs.

What are the Steps To Start a Grocery Store?

Starting a grocery store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Grocery Store Business Plan - The first step in starting a business is to create a detailed grocery store business plan that outlines all aspects of the venture. This should include market research on the grocery store industry, potential target market size, as well as information about the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your grocery store . This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your grocery store business is in compliance with local laws.

3. Register Your Grocery Store Business - Once you have chosen a legal structure, the next step is to register your business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to cover your startup costs and launch  your grocery store , so take some time to identify what financing options are available such as a business loan from a bank, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Grocery Store Equipment & Supplies - In order to start your business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your store . Marketing strategies includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful grocery store business:

• How to Open a Grocery Store Business

Where Can I Get a Grocery Store Business Plan PDF?

You can download our free grocery store business plan template PDF here . This is a sample grocery store business plan template you can use in PDF format.

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Grocery Store Business Plan

MAR.18, 2023

1. Business Plan For Opening A Grocery Store

Opening a grocery store can help meet the needs of a local community by providing a convenient source of fresh food and other staples. This can help improve the health and well-being of the community by providing access to affordable nutritious food.

With the right business plan, a grocery store can also provide employment opportunities to local residents, allowing them to gain valuable skills and experience while helping to build the local economy.

The Butcher Shop Business Plan can also serve as a community hub, providing a safe and welcoming place for people to gather and interact. A grocery store can become a valuable asset for the local community by providing these services and conveniences.

2. Executive Summary for Business Plan for Grocery Store

The business.

ABC Grocery Store will be a full-service grocery store offering various products, including organic and locally-sourced products. The store will be in a busy commercial area, featuring a modern, clean, and inviting atmosphere. In the Gourmet Food Store Business Plan , the store will have a self-checkout system and will offer online ordering and delivery services. The store will also offer various locally-sourced products, including fruits and vegetables, meats, cheese, bread, and other items.

ABC Grocery Store will exceed customer expectations for quality and convenience and provide a unique shopping experience that is focused on customer service, quality, and value.

Business Target

ABC Grocery Store will target the local residents of the area, as well as customers from the surrounding areas. The store will focus on providing high-quality products, excellent customer service, and competitive prices. In the Donut Shop Business Plan , the store will also focus on providing a unique and enjoyable shopping experience and will strive to create a welcoming and inviting atmosphere. The store will be open seven days a week, from 8 am to 9 pm, and will offer a wide range of products that will cater to the needs of all types of customers.

3. Company Summary

ABC Grocery Store is a new grocery store in the heart of downtown San Francisco. In the small grocery store business plan, we will offer a wide selection of fresh produce, dairy products, meat, canned goods, frozen foods, and a full selection of grocery items.

Company Owner

ABC Grocery Store is owned by Sany, a long-time resident of the area. Sany has extensive grocery business experience and a passion for providing quality products to his customers. Sany is firmly committed to the local community and is dedicated to making ABC Grocery Store a success.

Why The Grocery Store Business Is Being Started

The grocery store business is being started because there is a need for a grocery store in the downtown San Francisco area. The current mobile grocery stores in the area are not meeting the needs of the local population. We plan to fill this void by offering high-quality products at competitive prices.

How The Grocery Store Business Will Be Started

ABC Grocery Store will begin by securing a location in the local community. We will then purchase the necessary equipment and supplies to stock the store. We will also hire staff to help manage the store and to provide customer service.

We will market our business through local advertising and social media in the grocery store business plan sample. Finally, we will create a website that will provide customers with a convenient way to shop from the comfort of their own homes.

The experts estimate the grocery store business plan’s assets, investments, and costs.

In order to start a Coffee Shop Business Plan , you must meet the following criteria: total startup expenses, total assets, total startup funding, total funding required, total assets, total liabilities, total planned investments, total capital, total liabilities, and total funding.

4. Products

This mini grocery store business plan outlines the launch and operation of ABC Grocery Store, a full-service retail grocery store in San Francisco area. ABC Grocery Store will provide customers with fresh, high-quality, organic, locally-sourced food products, household goods, and health and beauty products.

• Meat/Seafood: Beef, Chicken, Pork, Fish, Shrimp
• Dairy: Milk, Cheese, Butter, Yogurt, Eggs
• Frozen Foods: Ice Cream, Pizza, French Fries, Frozen Dinners, Vegetables
• Bakery: Bread, Bagels, Cookies, Cakes, Donuts
• Grocery: Cereal, Pasta, Rice, Canned Goods, Snacks
• Household Items: Paper Towels, Toilet Paper, Soap, Detergent, Cleaning Supplies
• Health and Beauty: Toothpaste, Shampoo, Conditioner, Makeup, Vitamins
• Beverages: Soda, Water, Juice, Coffee, Tea
• Pet Food: Dog Food, Cat Food, Treats, Toys, Supplies
• Organic/Natural Foods: Fruits, Vegetables, Meat, Dairy, Grocery Items

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5. Marketing Analysis

The grocery store industry is highly competitive and the success of a grocery store business depends upon its ability to understand the market, develop a competitive advantage and effectively differentiate from its competitors. To gain a competitive advantage, the grocery store must identify its target market, understand the needs of its target market, develop a unique selling proposition, and create a strong marketing strategy.

Market Trends

The growth of the grocery store industry is largely dependent on economic conditions and population growth. The industry is expected to continue to experience steady growth in the near future as more people are able to afford to purchase groceries. Other industry trends include

• Growing demand for convenient grocery shopping options.
• Expansion of e-commerce grocery services.
• Growing demand for healthy and natural foods.
• Increasing focus on sustainability and environmental stewardship.
• Growing demand for locally sourced products.
• Increasing emphasis on customer service and satisfaction.

Marketing Segmentation

The grocery store industry is comprised of a variety of different types of customers with varying needs and preferences. In the grocery store business plan template, to effectively target customers, the grocery store must determine which types of customers it will serve and create a marketing plan to reach them. The most common market segments that grocery stores target include:

• Households: Grocery stores typically target households with various needs and preferences, including convenience, health consciousness, budget consciousness, and more.
• Businesses: Grocery stores also target businesses, including restaurants, catering companies, and food service providers.
• Specialty Markets: Grocery stores may also target specialty markets, such as health food stores, ethnic markets, and more.

The grocery store must identify its target market and create a business strategy to reach them. To do this, the grocery store must determine its target customer base, understand its needs and preferences, and develop a unique selling proposition that appeals to them. The grocery store must also develop a marketing strategy to reach its target market, including traditional and digital marketing tactics.

Product Pricing

The success of a grocery store business depends on its ability to set competitive and attractive prices for its target customers. To do this, the grocery store must understand its target customers’ needs and preferences and determine the optimal price point for its products. The grocery store must also understand the pricing strategies of its competitors and use this knowledge to set its own prices.

6. Marketing Strategy

The marketing strategy for our grocery store will focus on building brand recognition and creating a positive customer experience. We will use a combination of traditional marketing tactics such as print media, radio, and television, as well as digital marketing tactics such as email campaigns, social media, and search engine optimization (SEO). We will also leverage our relationships with local businesses and organizations to build our customer base.

Our main goal is to create a positive customer experience and build brand loyalty. We will focus on providing quality products and services, competitive pricing, and excellent customer service. We will also use our website and social media platforms to promote our store and engage with customers.

Competitive Analysis

Our grocery store will be competing with a number of other stores in the area. Our competitors include local supermarkets, convenience stores, and online grocery store services. We will differentiate ourselves from our competitors by offering quality products, competitive pricing, and excellent customer service. We will also focus on building relationships with local businesses and organizations to gain their patronage.

Sales Strategy

Our sales strategy will emphasize customer satisfaction and quality service. We will train our staff to be knowledgeable of our products and services and to be attentive to customer needs. Our store is a zero-waste grocery store, and we will strive to deliver a positive shopping experience to our customers and to provide them with the best possible value.

Sales Monthly

Our goal is to generate $10,000 in monthly sales. To achieve this goal, we will need to attract at least 150 customers to our store each month. We will implement various promotional activities to reach our target audiences, such as discounts, loyalty programs, and special events.

Sales Yearly

Our goal is to generate $120,000 in yearly sales. To achieve this goal, we must attract a minimum of 1,800 customers to our store each year. We will continue to implement promotional activities to reach our target audience and focus on customer retention strategies to ensure that our customers continue to shop with us.

Sales Forecast

In the next five years, we anticipate an increase of 10% in sales per year. We will use traditional and digital marketing tactics to reach our target customers. We will also offer discounts and promotions to encourage customers to purchase from our store.

7. Personnel Plan

Company staff.

The personnel plan for the grocery store business will depend on the size of the store and the services offered. In how to find a location for the grocery store, Sany got help from brokers for the best location. The following positions are a general list of the positions necessary to run a successful grocery store business:

• CEO and Founder
• Store Manager
• Assistant Store Manager
• Shift Supervisors

Average Salary of Employees

The average salary of employees will depend on the services the store offers and the size of the store. Generally, cashiers and stockers usually earn an annual salary of between $20,000 and $30,000. Managers and assistant managers typically earn an annual salary of between $40,000 and $60,000. Salaries for deli workers, production workers, and other store personnel can vary depending on their experience and the services they provide.

8. Financial Business Plan for Grocery Store

The financial plan of this grocery store business plan is based on the start-up costs of $50,000. This includes the cost of rent, inventory, equipment, licenses, permits, and other miscellaneous costs. This start-up cost will be financed through a combination of personal funds, a bank loan, and an investor.

Important Assumptions

Grocery store business plan’s financial assumptions:

Changes in regulations or industries can have an impact on financial strategies.

Brake-even Analysis

The brake-even analysis for this grocery store business plan is based on the start-up costs of $50,000. This means that the store must generate $50,000 in sales to break even. This figure is based on the fixed costs of the store, such as rent, payroll, utilities, and other fixed costs.

Monthly break-even analysis

Projected Profit and Loss

The projected profit and loss statement estimate the expected revenue, expenses and profits over a certain period of time. This information can be used to make decisions about the store’s operations and investments.

Profit Monthly

Profit Yearly

Gross Margin Monthly

Gross Margin Yearly

Projected Cash Flow

The retail grocery store business plan also includes a cash flow statement, which will provide a snapshot of the store’s financial health at any given time. The following column diagram illustrates the projected cash flow statement and the sources and uses of cash associated with the grocery store business.

Projected Balance Sheet

The projected balance sheet will provide an overview of the store’s assets, liabilities, and equity. This statement will help to determine the store’s financial health and inform any potential investors. To create the statement, the store will need to calculate the value of its assets, such as inventory, equipment, and supplies. Additionally, the store will need to estimate the value of its liabilities, such as bank loans and debts.

Business Ratios

The business ratios are another essential part of a grocery store business plan. These ratios measure the performance of the business and provide valuable insight into the business’s overall health. As shown in the table below, the business ratios include profitability, liquidity, and efficiency measures.

• What is the most profitable part of a grocery store? The most profitable part of a grocery store typically is the center aisles, which are often referred to as the “center store” or “dry grocery”. These aisles contain items like canned goods, snacks, breakfast items, and other non-perishable food items. These items typically have higher profit margins than items located in the perimeter of the store, such as produce and meats.
• How hard is it to run a grocery store? Running a grocery store is a complex and challenging task. It requires a lot of hard work and dedication to ensure that the store is well-run and profitable. You must be familiar with retail operations and understand the needs of customers. You also need to be able to manage staff, keep up with inventory, and stay on top of financials. Additionally, you must be able to develop relationships with suppliers, create effective marketing strategies, and stay up-to-date with industry trends.

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Grocery Business Plan

There will be a market for groceries and other household goods because of the demand, and this can be a very profitable business venture. But opening and running a grocery store need thorough preparation, investigation, and attention to detail.

Are you looking to start writing a business plan for your grocery store? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a grocery store business plan template for you to help in start writing yours.

Free Business Plan Template

Download our Free Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Grocery Store Business Plan?

Writing a grocery store business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your products and services:, management team:, financial highlights:, call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name of the grocery store and the concept behind it: like are you opening a supermarket, small grocery store, mini grocery store, convenience store, or something else?
• Company structure of your supermarket whether it is a sole proprietorship, LLC, partnership firm, or others.
• Location of your supermarket and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your grocery store business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your small grocery store business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of a grocery store business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the product:

• Create a list of the services that your grocery store will offer: fresh produce, meat, poultry products, dairy products, turkey, cookies, chocolates, bread, grain, beverages, frozen food, and others.

Emphasize safety and quality:

Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Develop your unique selling proposition (USP):

Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.

Overall, the sales and marketing strategies section of your business plan should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.

6. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:

Hiring plan:

Operational process:, technology and equipment:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your grocery store business.

7. Management Team

The management team section provides an overview of the individuals responsible for running the grocery store. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe the key personnel of your company and highlight why your business has the fittest team.

8. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

9. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the grocery industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your grocery store business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This grocery store business plan sample will provide an idea for writing a successful plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready business plan to impress your audience, then download our grocery store business plan pdf .

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Frequently asked questions, why do you need a grocery store business plan.

A business plan is an essential tool for anyone looking to start or run a successful supermarket. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your grocery store.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your store.

How to get funding for your grocery store business?

There are several ways to get funding for your grocery store, but one of the most efficient and speedy funding options is self-funding. Other options for funding are

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your store, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your grocery store business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your grocery store business plan and outline your vision as you have in your mind.

What is the easiest way to write your grocery store business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any grocery store business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to write a business plan for a grocery store?

Creating a business plan for a grocery store is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a grocery store business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a grocery store?

• What information is needed to create a business plan for a grocery store?
• What goes in the financial forecast for a grocery store?
• What goes in the written part of a grocery store business plan?
• What tool can I use to write my grocery store business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a grocery store business plan in the first place.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your grocery store. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your grocery store to be in the next three to five years.

Once you have a clear destination for your grocery store, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your grocery store's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your grocery store.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your grocery store and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your grocery store's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your grocery store, let's explore what information is required to create a compelling plan.

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Information needed to create a business plan for a grocery store

Drafting a grocery store business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a grocery store

As you consider writing your business plan for a grocery store, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your grocery store.

Your market research may reveal that customers may be more likely to purchase organic or eco-friendly products, or that they might be looking for more convenience-focused items such as pre-prepared meals or ready-to-go snacks.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your grocery store.

Developing the marketing plan for a grocery store

Before delving into your grocery store business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a grocery store

Whether you are starting or expanding a grocery store, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A grocery store might incur staffing costs such as wages for grocery store employees, payroll taxes, and worker's compensation insurance. In addition, the grocery store might incur equipment costs such as refrigerators, freezers, shelves, and checkout counters.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your grocery store, it is time to start creating your financial forecast.

What goes into your grocery store's financial forecast?

The objective of the financial forecast of your grocery store's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a grocery store are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your grocery store forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established grocery store will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your grocery store

The balance sheet for a grocery store is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your grocery store's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your grocery store's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a grocery store is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your grocery store business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the grocery store is appropriately funded.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting a grocery store.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the grocery store, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of a grocery store business plan is understood, let's focus on what goes into the written part of the plan.

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The written part of a grocery store business plan

The written part of a grocery store business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your grocery store's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your grocery store, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

As you build your grocery store business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your grocery store to a third party financier, you could emphasize that it is located in a densely populated area with a large customer base that may have a need for a convenient grocery store. You could also point out that it is close to other businesses, providing additional foot traffic and potential customers. Additionally, you may note that the area has ample parking, making it easier for customers to access the store. You might also highlight any public transportation options that are nearby, making it easier for customers to get to the store.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your grocery store might offer fresh produce, grocery delivery, and ready-made meals for customers who want convenience, quality, and variety. Fresh produce would let customers purchase all of their fruits and vegetables in one easy spot. Grocery delivery provides customers with an easy way to shop without having to leave their homes. Ready-made meals give customers the option to purchase pre-made meals that are quick and simple to prepare. These options would make it easier for customers to get the food they need without having to worry about long lines or waiting for their orders.

4. The market analysis

When outlining your market analysis in the grocery store business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your grocery store, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your grocery store targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include busy professionals. They often don't have the time or energy to cook, so they shop for pre-made meals or ready-to-cook ingredients. They tend to be willing to pay a premium for convenience.

In the competition subsection, introduce your main competitors and explain what sets your grocery store apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your grocery store.

5. The strategy section

When you write the strategy section of your grocery store business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your grocery store faces numerous risks. One risk could be the possibility of theft. Your store could be targeted by shoplifters, who might steal items from your shelves. Another risk could be shipping delays. Your store may order large quantities of food and supplies, but they could be delayed due to weather, traffic, or other unexpected events. Both of these risks could cause financial losses for your store, as well as negatively impacting the customer experience.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your grocery store.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your grocery store's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You may have a range of key assets and intellectual property that your grocery store could have. For example, you might have a unique brand logo or mascot that your customers recognize and associate with your store. Additionally, your store could have exclusive recipes, such as for sauces or other products, which could give you an edge in the market.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a grocery store business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my grocery store's business plan?

In this section, we will be reviewing the two main options for writing a grocery store business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your grocery store's business plan

Using online business planning software is the most efficient and modern way to create a grocery store business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

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The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your grocery store's business plan

Outsourcing your grocery store business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your grocery store business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your grocery store's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your grocery store business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your grocery store business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your grocery store and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your grocery store business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a grocery store? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Business Plan Template for Grocery Store

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting a grocery store can be an exciting and rewarding venture, but it requires careful planning and strategy. That's where ClickUp's Business Plan Template for Grocery Store comes in handy!

Our comprehensive template is designed specifically for entrepreneurs and business owners looking to start a grocery store. With this template, you can outline your goals, operations, financial projections, marketing strategies, and other key details required to attract investors, secure financing, and guide the successful establishment and management of your grocery store.

Take advantage of our template to create a solid business plan that will set you on the path to success. Start planning your grocery store today with ClickUp!

Business Plan Template for Grocery Store Benefits

Starting a grocery store can be a daunting task, but with the Business Plan Template for Grocery Store, you'll have all the tools you need to succeed. Here are just a few benefits of using this template:

• Clear roadmap: The template provides a structured outline that helps you define your goals, strategies, and operations, ensuring you have a clear roadmap to follow.
• Investor-friendly: With detailed financial projections and market analysis, the template is designed to attract investors and secure financing for your grocery store.
• Efficient planning: By using the template, you can save time and effort by leveraging pre-built sections and prompts that guide you through each step of the planning process.
• Strategic decision-making: The template encourages you to think critically about marketing strategies, competitive analysis, and customer segmentation, enabling you to make informed decisions and stay ahead of the competition.

Get started with the Business Plan Template for Grocery Store and pave the way for a successful and thriving grocery store.

Main Elements of Grocery Store Business Plan Template

When it comes to starting a grocery store, having a well-crafted business plan is essential. ClickUp’s Business Plan Template for Grocery Store includes:

• Custom Statuses: Track the progress of your business plan with statuses such as Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Add important details to your business plan, like references, approval status, and section, using custom fields.
• Custom Views: Access different views to manage your business plan effectively, including Topics view to organize key areas of your plan, Status view to track progress, Timeline view for visual planning, Business Plan view for a comprehensive overview, and Getting Started Guide view to assist you in using the template effectively.

Start your grocery store journey on the right foot with ClickUp's Business Plan Template.

How To Use Business Plan Template for Grocery Store

If you're starting a grocery store and need a comprehensive business plan, you're in luck! ClickUp has a business plan template specifically tailored for grocery stores. Follow these steps to make the most of it:

1. Define your vision and mission

Before diving into the specifics, it's important to establish a clear vision and mission for your grocery store. This will help guide your decision-making and set the tone for your business. Are you aiming to provide organic and locally sourced products? Or do you want to focus on offering a wide variety of international foods? Clearly defining your vision and mission will help you stay focused on your goals.

Use a Doc in ClickUp to articulate your vision and mission statement.

2. Conduct market research

To create a successful grocery store, you need to understand the market you're entering. Conduct thorough research on the local competition, target audience, and consumer preferences. Identify any gaps in the market and opportunities for differentiation. This will help you tailor your offerings and marketing strategies to meet the needs of your customers.

Use the Table view in ClickUp to organize your market research findings and track key insights.

3. Develop a marketing plan

A well-crafted marketing plan is essential for attracting customers to your grocery store. Determine your target audience and develop strategies to reach them effectively. Consider implementing digital marketing tactics, such as social media advertising and email campaigns, as well as traditional methods like flyers and local partnerships. Your marketing plan should outline your promotional activities, pricing strategies, and how you'll differentiate yourself from competitors.

Create tasks in ClickUp to outline your marketing plan and assign responsibilities to team members.

4. Plan your inventory and suppliers

One of the most vital aspects of running a grocery store is managing your inventory and working with reliable suppliers. Determine the range of products you'll offer, taking into account factors like seasonality, customer preferences, and local demand. Research and establish relationships with suppliers who can consistently provide high-quality products at competitive prices. Your business plan should include a detailed inventory management strategy to ensure you have the right products in stock at all times.

Use custom fields in ClickUp to track your inventory, supplier information, and pricing details.

5. Financial projections and funding

No business plan is complete without financial projections and a funding strategy. Estimate your startup costs, ongoing expenses, and projected revenue to determine the financial feasibility of your grocery store. Consider factors like rent, utilities, staffing, inventory, and marketing expenses. Additionally, outline your funding strategy, whether it's through personal savings, loans, or investors.

Utilize the Dashboards feature in ClickUp to create financial projections and track your progress towards your funding goals.

By following these steps and utilizing the Business Plan Template in ClickUp, you'll have a comprehensive and well-structured plan to guide your journey towards opening and running a successful grocery store.

Get Started with ClickUp’s Business Plan Template for Grocery Store

Entrepreneurs looking to start a grocery store can use the Business Plan Template for Grocery Store in ClickUp to streamline their planning process and ensure all important aspects are covered.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to outline and organize different sections of your business plan, such as Executive Summary, Market Analysis, Operations, Financial Projections, and more
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• Utilize the Timeline View to set deadlines and milestones for completing each section of your business plan
• The Business Plan View provides a holistic overview of your entire plan, allowing you to easily navigate between sections and make edits
• Use the Getting Started Guide View to access helpful resources, tips, and instructions on how to effectively use the template
• Customize the Reference, Approved, and Section custom fields to add additional information and track the status of each section
• Collaborate with team members, assign tasks, and set reminders to ensure timely completion of your business plan.
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A Sample Mini Grocery Store Business Plan Template

Are you about starting a grocery store? If YES, here is a complete sample grocery store business plan template & feasibility study you can use for FREE. A grocery store is a retail outlet where different food and household products are sold on shelves and cabinets.

People love to do their shopping in a grocery store because of the convenience it gives them to shop for everything they need in a grocery store without moving from one store to another. Starting a grocery store is a very easy business and it is not so capital intensive.

Getting the right products that people want to buy and good stock keeping records are the secrets of running a grocery store. A grocery store can be run offline in the conventional retail store or online on an online e-commerce retail site.

You can also venture into mini-grocery sales. When people are looking for specialty foods or ingredients that can’t be found at the corner store or neighborhood Supermarket, they typically head to small grocers, also called mini-grocery stores.

Such retail establishments sell food and items that are uncommon and not carried by bigger stores. Opening a mini-grocery can be a lucrative business venture, especially if you live in a city with little competition. There are several things you can do to help your mini-grocery store succeed.

The information contained in this article can be beneficial to those individuals currently in the grocery business, those who are considering starting or investing in a grocery, or a community wishing to attract or retain a grocery store.

1. Industry Overview

Grocery stores, including supermarkets, account for the largest share of food store sales in the US. In 2013, grocery stores accounted for 90% of the country’s food and beverage store sales, while supermarkets accounted for 95% of the total grocery store sales.

The food retail industry is a high-volume, low-margin business, with cutthroat competition from all quarters. It includes grocery stores and supermarkets, as well as convenience stores. The staples offered at these stores make the industry non-cyclical.

In addition, grocery stores and supermarkets offer an alternative to restaurants during tough economic times, as buying groceries for home cooking is one alternative. Buying prepared foods, which are new higher-margin offerings at grocery stores, is an additional alternative to restaurants.

However, offering new higher-margin items such as gourmet foods, prepared foods, and general merchandise is making this industry more cyclical than in the past, creating pressures on revenue during the recent economic downturn.

Small chains and independent grocers still dominate this industry, but national chains, such as Kroger, are increasingly growing in dominance. Mass merchants, such as Wal-Mart, are competing with grocery stores at their “supercenters” by offering lower prices through lower cost structures.

Wal-Mart is now the world’s No. 1 seller of groceries. Warehouse clubs, such as Costco and SAM’S CLUB ( owned by Wal-Mart ), can also compete on price by selling in large bulk. Supermarkets have responded to these threats by building larger “superstores.”

Conventional supermarkets are grocery stores with over $2 million in revenue, with average square feet of 15,000. Grocery stores that have less than $2 million in annual revenue sell almost entirely packaged and perishable goods, and are mostly independently owned. Superstores are supermarkets with about 30,000 square feet, averaging $12 million in revenue.

They often have an extended selection of food and nonfood items, with specialty departments such as florists, delis, bakeries, banking, pharmacy, and video rentals. Combination stores are hybrids of superstores and drugstores under one roof, with an average of 55,000 square feet.

The supermarket and grocery stores industry is a major sector of the economy of the united states which generates a whooping sum of well over 2 billion annually from more than 42,539 outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 2,624,650people. Experts project the supermarket and grocery industry to grow at a 1.4 percent annual rate. The establishment in this industry that has a dominant market share in the United States are; Albertson, Kroger and Publix Super Markets Inc.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from retail consumption of which the supermarket and grocery stores industry contributes greatly.  This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.

In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / grocery stores industry negatively which may result in the closure of some supermarket / grocery stores.

In recent time, the retail landscape has seen tremendous changes in the last 20 years; it has grown from the usual mom and pop outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical store is located.

It is interesting to note that more supermarket / grocery shops especially lager retail outlets have started to include self-serve checkout lanes in their stores. It creates shorter lines that appeal to consumers; the average customer would not want to stay longer on queue.

Over and above, the supermarket and grocery store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner like the average mom and pop business or you can chose to start on a large scale with several outlets in key cities.

2. Executive Summary

Peak Lane Grocery Store, Inc. is a standard and registered grocery store business that will be located in one of the busiest streets in Orlando, Florida. We have been able to lease a facility that is big enough ( a 15 thousand square foot facility ) to fit into the design of the kind of grocery store that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Orlando, Florida.

Peak Lane Grocery Store, Inc. will retail a wide range of durable goods and non – durable goods at affordable prices from different brands. We will engage in retailing general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products et al.

We are aware that there are several large and small chains of supermarket / grocery store outlets all around Orlando, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering. We have self – service options for our customers, and our outlet is well secured with the various payment options.

Much more than selling the goods and products of top brands in the manufacturing and food industry, our customer care is second to none in the whole of Orlando, Florida. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit our grocery store and also to become our loyal customers and ambassadors.

Peak Lane Grocery Store, Inc. will ensure that all our customers are given first class treatment whenever they visit our grocery store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when making some business decisions.

We are aware of the trend in the retail / supermarket and grocery store industry and we are not only going to operate a system where our customers would have to come to our store to make purchase or whatever they want but we will also operate an online store and our customers can order grocery online and they will get it delivered to their houses or any location they want us to deliver the goods to within Orlando.

Peak Lane Grocery Store, Inc. is a family business that is owned by Bernie Vandross and Family. Bernie Vandross has a B.Sc. in Business Administration, with well over 15 years of experience in the retailing / supermarket and grocery store industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Orlando – Florida, but there is a plan to open other outlets all around Florida.

3. Our Products and Services

Peak Lane Grocery Store, Inc. is in the supermarket and grocery store industry and we will ensure we go all the way to make available a wide range of goods and products from top manufacturing brands in the United States and other countries of the world.

We will have available in our store a wide range of durable goods and non – durable goods at affordable prices. Our product offerings are listed below;

• Fruit and vegetables
• Fresh and frozen meat
• Dairy products
• Beverages (including alcohol)
• Frozen foods
• Other food items
• Other non-food items
• Drugs and health products

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the supermarket and grocery store industry in Florida and to establish a one stop grocery store in Orlando and in other cities in Florida.
• Our mission is to establish a grocery store business that will make available a wide range of goods and products from top manufacturing / production brands at affordable prices to the residents of Orlando, Florida and other cities in Florida where we intend opening of chains of grocery stores.

Our Business Structure

Peak Lane Grocery Store, Inc. do not intend to start a grocery store business like the usual mom and pop business around the street corner; our intention of starting a grocery store business is to build a standard and one stop grocery store outlet in Orlando, Florida.

Although our grocery store business might not be as big as Albertson, Kroger or Publix Super Markets Inc., but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders ( the owners, workforce, and customers ).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of goods are kept and our racks and warehouse does not run out of products
• Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls  goods distribution and supply inventory
• Supervises the workforce in the grocery sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Help to ensure consistent quality of goods and products on our rack
• Responsible for the purchase of goods and products for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning the store facility at all times
• Ensure that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Our intention of starting just one outlet of our grocery store in Orlando, Florida is to test run the business for a period of 2  to 5 years to know if we will invest more money, expand the business and then open other outlets all over Florida.

We are quite aware that there are several supermarket and grocery stores all over Orlando and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Peak Lane Grocery Store, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Peak Lane Grocery Store, Inc.;

Our location, the business model we will be operating on (physical store and online store), varieties of payment options, wide range of products and our excellent customer service culture will definitely count as a strong strength for Peak Lane Grocery Store, Inc.

A major weakness that may count against us is the fact that we are a new grocery store outlet and we don’t have the financial capacity to compete with multi – billion dollars supermarket and grocery store outlets like Albertson, Kroger, Publix Super Markets Inc. and co when it comes to retailing at a rock bottom prices for all their goods.

• Opportunities:

The fact that we are going to be operating our grocery store in one of the busiest streets in Orlando, Florida provides us with unlimited opportunities to sell our groceries to a large number of people. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our grocery outlets; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new supermarket, grocery store or retail outlet in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

Supermarket and grocery store business has been in existence for as long as human started trading goods, but one thing is certain, the supermarket and grocery store industry is still evolving. The introduction of technology and subsequently online grocery cum retail store has indeed helped in reshaping the industry.

It is now a common phenomenon for supermarkets and grocery outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their shop to meet their needs; in essence, the use of technology help retailers to maximize supply chain efficiency. No doubt data collected from customers goes a long way to help supermarkets and grocery stores serve them better.

Another common trend in the supermarket and grocery store industry is the pricing system. Aside from having varieties of products in a store, one of the easiest ways for supermarket and grocery stores to sell the goods on their racks as fast as they can and keep re – stocking is to ensure that the prices of their goods are a bit lower than what is obtainable in elsewhere.

For example, it is common to see items with prices in this format; $3.99, $99.99 and $199.99 et al as against $4, $100 and $200. Supermarkets and grocery stores also engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.

8. Our Target Market

Perhaps the supermarket and grocery store industry has the widest range of customers; everybody on planet earth has one or more things that they would need in a supermarket or grocery store. It is difficult to find people around who don’t patronize supermarket and grocery stores.

In view of that, we have positioned our grocery store to service the residence of Orlando, Florida and every other location our grocery stores will be located all over Florida. We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of groceries to the following groups of people;

• Bachelors and Spinsters
• Corporate Executives
• Business People
• About to wed couples
• Expectant Mothers
• Sports Men and Women

Our Competitive Advantage

A close study of the supermarket and grocery store industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading supermarkets and grocery stores in Orlando, Florida.

Peak Lane Grocery Store, Inc. is launching a standard grocery store that will indeed become the preferred choice of residence of Orlando, Florida. Our grocery store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Orlando, Florida. We have enough parking space that can accommodate well over 100 cars per time.

One thing is certain; we will ensure that we have a wide range of products available in our store at all times. It will be difficult for customers to visit our store and not see the product that they are looking for. One of our business goals is to make Peak Lane Grocery Store, Inc. a one stop shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category ( startups supermarkets and grocery stores ) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Peak Lane Grocery Store, Inc. is in business to retail a wide range of groceries to the residence of Orlando, Florida. We are in the supermarket and grocery industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

In essence, our source of income will be the retailing of a wide range of durable goods and non – durable goods at affordable prices. We will retail groceries such as;

10. Sales Forecast

One thing is certain when it comes to supermarkets and grocery stores, if your store is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Orlando, Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the supermarket and grocery industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Orlando, Florida.

Below is the sales projection for Peak Lane Grocery Store, Inc., it is based on the location of our business and other factors as it relates to supermarkets and grocery stores start – ups in the United States;

• First Fiscal Year-: $50,000
• Second Fiscal Year-: $150,000
• Third Fiscal Year-: $450,000

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Peak Lane Grocery Store, Inc., we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Orlando, Florida. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the supermarket and grocery industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Orlando.

In other to continue to be in business and grow, we must continue to sell the groceries that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Peak Lane Grocery Store, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our grocery store in a grand style with a party for all.
• Introduce our grocery store by sending introductory letters alongside our brochure to organizations, households and key stake holders in Orlando, Florida
• Ensure that we have a wide range of groceries from different brand at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our grocery store
• Position our signage / flexi banners at strategic places around Orlando
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our bar.

11. Publicity and Advertising Strategy

Despite the fact that our grocery store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our grocery store. Peak Lane Grocery Store, Inc. has a long term plan of opening outlets in various locations all around Florida which is why we will deliberately build our brand to be well accepted in Orlando before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Peak Lane Grocery Store, Inc.;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Orlando, Florida
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Peak Lane Grocery Store, Inc. and the products we sell
• Advertise our grocery store business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that gives leverage to supermarkets and grocery stores, it is normal for consumers to go to places (retail outlets) where they can groceries at cheaper price which is why big player in the supermarket and grocery industry like Albertson, Kroger and Publix Super Markets Inc. will attract loads of consumers. Products in their store are tagged with the cheapest price you can get anywhere in the United States.

We know we don’t have the capacity to compete with Albertson, Kroger and Publix Super Markets Inc., but we will ensure that the prices of all the products that are available in our store are competitive with what is obtainable amongst supermarkets and grocery stores within our level.

• Payment Options

At Peak Lane Grocery Store, Inc., Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money
• Payment with check from loyal customers

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a grocery store business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Orlando, Florida – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services ( software, P.O.S machines and other software )
• Marketing promotion expenses for the grand opening of Peak Lane Grocery Store, Inc. in the amount of $3,500 and as well as flyer printing ( 2,000 flyers at $0.04 per copy ) for the total amount of Grocery Store Business Plan
• Cost for hiring Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months ( salaries of employees, payments of bills et al ) – $60,000
• The cost for Start-up inventory (stocking with a wide range of groceries) – $100,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for serving area equipment (plates, glasses, flatware) – $3,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of Launching a Website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $500,000 to successfully set up our grocery store in Orlando, Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Peak Lane Grocery Store, Inc.

Peak Lane Grocery Store, Inc. is a private business that is solely owned and financed by Bernie Vandross and family. They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If any of these factors is missing from a business (company), then it won’t be too long before the business close shop.

Peak Lane Grocery Store, Inc. will ensure that all the factors listed above are reinforced on a regular basis and also we will engage in continuous capacity building of our workforce. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more.

We will make sure that the right foundation, structures and processes are put in place to ensure that staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner. We have the plans of

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – suppliers of groceries: In Progress

More on Wholesale & Retail

Grocery Business Plan Template & Guidebook

Owning a grocery store can be a rewarding and challenging experience, especially if you are starting from scratch. To make sure that you have the minimum amount of stress and the maximum profitability, you need to craft a detailed business plan. With the #1 Grocery Business Plan Template & Guidebook, you can easily design and create an effective plan that will help you stay on track and exceed your goals. Get ready to take your grocery store to the next level with this ultimate business planning tool!

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Grocery Business [11 Steps]
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How to Write a Grocery Business Plan in 7 Steps:

1. describe the purpose of your grocery business..

The first step to writing your business plan is to describe the purpose of your grocery business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a grocery business:

The purpose of our grocery business plan is to provide our customers with a wide variety of quality, affordable groceries in a clean and convenient shopping environment. We strive to create a positive shopping experience for all customers and promote our commitment to providing quality products and services at competitive prices.

2. Products & Services Offered by Your Grocery Business.

The next step is to outline your products and services for your grocery business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your grocery business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your grocery business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your grocery business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a grocery business?

• Business license
• Cash register
• Point of sale (POS) system
• Refrigeration equipment, such as refrigerators and freezers
• Scales for weighing produce
• Grocery bags and other packaging materials
• Stock shelves and other display units
• Inventory control software
• Security system including cameras and alarms

5. Management & Organization of Your Grocery Business.

The second part of your grocery business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your grocery business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Grocery Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a grocery business varies based on many different variables, but below are a few different types of startup costs for a grocery business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your grocery business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your grocery business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your grocery business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Grocery Business Plans:

Why do you need a business plan for a grocery business.

A business plan is essential for a grocery business, as it provides direction and outlines the goals and objectives for the business. It serves as a roadmap to guide operations, and helps identify potential risks, opportunities, and areas of improvement. It is also valuable when seeking financing from banks or investors. Additionally, a business plan can help ensure that all necessary steps are taken to successfully start and manage the grocery business.

Who should you ask for help with your grocery business plan?

You should ask for help from a business consultant or a mentor who has experience in the grocery business. You could also seek advice from a Small Business Administration (SBA) representative in your area.

Can you write a grocery business plan yourself?

Yes, it is possible to write a grocery business plan yourself. Depending on the complexity and scope of your plan, it may be beneficial to seek assistance from an experienced business consultant or accountant. Additionally, there are many resources available online or through industry associations and organizations that can provide guidance and helpful advice on how to create a successful business plan.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Table of Contents

A clear blueprint is key in building a successful grocery business, 1. initial costs and investment, 2. projected income, 3. customer loyalty, retention, and upselling strategies.

• 4. Grocery Marketing Plan

5. Efficient Systems and Processes

Finding the building blocks to execute on your grocery store business plan, 5 steps to build the ideal grocery store business plan.

A highrise can’t be built without proper foundation, and your grocery store won’t see the success you want unless you take the proper steps to build and grow it correctly.

Statistics say a small retailer closes every 12 minutes. Starting any new business is a daunting task, and competing with big box stores makes the grocery industry even more difficult to survive.

With the right grocery store business plan and point of sale system, your store can thrive and find success in the market. We’re here to help provide you with five key steps that can help you build a solid strategy to help your grocery store or market get off the ground.

The right business plan and strategy must take into account key considerations, including: 

Cost structure 

Calculating projected income 

Attracting prospective customers 

Creating a marketing plan 

Employing the right systems to optimize grocery efficiency

Putting together a growth plan from conception to building to execution is important, as it can help you with considering all possible outcomes or challenges. Running a grocery store comes with specific challenges and processes that can be made easier with the right planning and systems in place.

Operational costs play a central role in balancing revenue and expenses for your grocery store. Initial investments to consider include: 

Building costs or rent deposit, 

Registration fees, 

Licensing fees, 

Developer costs, and 

Product inventory costs. 

Creating a budget and planning for any obstacles or surprise costs is important in setting yourself up for success. Working with contractors and developers to find cost-efficient ways to get your store looking the way you want it to, whether you’re leasing a space or building from scratch, is a  great way to cut costs. 

Investing in a top-of-the-line POS system from the start can also help to optimize efficiency for your store from the get-go, and can help you save money from having to deal with any sort of hardware or software transition in the future. Moving from one system to another requires downtime, and downtime (no matter how big or small) leads to reductions in profit.

Taking into consideration how long it might take you to pay off any loans or debt is also an important factor. This is a great exercise in being able to manage money in versus money out. On the opposite side of budget are income calculations and revenue projections, which are vital parts of the success equation.

Investing in a trustworthy grocery POS system from the start is key. Learn how IT Retail can help get you started with a demo . 

Cost of goods sold and labor expenses are the key cost drivers for grocery stores. Profit margins should be considered and assessed from the start — calculating your business’ profit margins will give you insight into potential revenue or income. Creating a sales forecast will assist with anticipated monthly revenues, and a careful study of your potential market will help you arrive at realistic numbers.

Comparing your total revenue against labor, maintenance, and other operational expenditures can help you assess whether you’re on track to be profitable. Revenue projections and estimated income also come from identifying foot traffic and average sale per customer. 

An efficient grocery POS system like IT Retail can help provide you with the data points in order to put together revenue projections, and better understand how products are moving on your shelves.

Maintaining traffic and revenue rely heavily on attracting new customers, and developing customer loyalty. Simply put, bring in more people and keep them there. 

Loyalty programs can help you identify and reward “good” and loyal customers, and can direct you to who you need to focus your attention on retaining. This can look like offering new customers discounts, coupons, or perks for coming back.

For returning and loyal customers, the next step is to increase their average order value. Are they coming in to buy a single loaf of bread every couple of days? Information like this can help drive strategies to increase their spend. Position those items close to other items that pair well with it, or set up an enticing display, to test if the average order value increases.

Grocery-specific POS systems like IT Retail can provide you with the right customer data points — increasing the efficiency and effectiveness of promotional activities in order to continue attracting net new business. Develop promotions strategically and seasonally, and use analytics tools to assess how successful your targeted promotion was at attracting new customers and increasing the order value for repeat customers. 

Everyday low pricing, zone pricing strategies, and loyalty discount programs are great campaigns to test on your customers and their habits.

4. Grocery Marketing Plan  

A marketing plan for a grocery store can provide guidance for any new business owner, and help them find a niche or loyal following. Potential marketing tactics include paid advertisements, sales promotions, public relations, and pricing and customer service initiatives. 

Combining these marketing disciplines with your store’s specific strengths or unique offerings can help you pursue the right kinds of customers. Local newspaper ads, social media , direct mail, and email marketing are great ways to invite new customers to your store.

You may want to start with a fixed budget before developing your strategies in order to give yourself clear boundaries to work within. You can also determine a budget after coming up with campaign ideas. 

Regardless, calculating the cost of implementation and execution on your marketing strategies is necessary to work within your financial means, and not burn more cash than you can afford. Budgeting, combined with key customer data points and information to drive marketing campaigns, will help you attract, retain, and grow your customer base.

A full scale all-in-one grocery POS solution can significantly improve the growth and performance of your store. A solid system is a core piece of the other steps we’ve listed to create a solid business plan. 

Reporting and analytics can help you see top-selling items, and create noise or promotional campaigns for popular products. Grocery point of sale systems like IT Retail come with inventory management and analytics that give you insightful data and a clear picture of potential promotions to run.

Sales reports and customer loyalty are also key functionalities that can help set you up for success in attracting and retaining customers. IT Retail also provides a simple, easy-to-use system so your employees can focus on providing a world-class customer experience.

Now that you have a better understanding of the five core elements a grocery store business plan should include, constructing one for your small business should seem like a more accessible reality. Systems like IT Retail make execution significantly easier by providing an entire full scale end-to-end solution that can help you manage every area of your business with ease. Inventory management, reporting and analytics, and marketing campaigns can all provide actionable insights to help you optimize your business plan for success. 

IT Retail also has a dedicated support team to ensure you have no issues with hardware or software. If you want to get started with planning for your grocery store, or if you already have one and you want to execute on a business plan or strategy, get in touch with us and we can help you supercharge your grocery store’s success with our full- scale grocery store POS solution.

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Grocery Store Business Plan Template [Updated 2024]

Grocery Store Business Plan Template

If you want to start a Grocery Store or Supermarket business or expand your current Grocery Store business, you need a business plan.

The following Grocery Store business plan template can be used to create a grocery store business plan, supermarket business plan, or a small grocery store business plan.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of your Grocery Store business plan:

Grocery Store Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Click below to see each section of our free grocery store business plan template. You can also click here to get our small grocery store business plan pdf .

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Grocery Store Business Plan Sample

This grocery store business plan will review how to start a grocery store business. Opening a grocery store can be fun and fulfilling if you have properly identified the appropriate grocery store business model to implement. Whether you plan to open a small grocery store, a mini supermarket, or a full-scale supermarket, a solid grocery business plan is essential to ensure your success. In this article, we will provide you with an overview of the key components of a grocery store business plan and guide you through the process of creating one.

If you’re considering starting a grocery store business, having a well-thought-out grocery store business plan is crucial to its success. A business plan serves as a roadmap for your business, outlining your objectives, strategies, financial projections, and potential obstacles. Here are some essential steps to consider when creating your grocery store business plan:

Before opening a grocery store, you need to decide on your business model. Will you be starting or opening a small grocery store, a supermarket, or a general store? Each model has different considerations, such as the size of the store, the types of products sold, and the target market.

Knowing your target audience is crucial in creating a successful grocery store business plan. Consider factors such as age, income level, and shopping habits when identifying your target audience. Understanding their needs and preferences will help you select the right products, set appropriate pricing, and design the store layout.

Market research is critical in understanding the demand for your grocery store setup in the area you plan to open. It will help you identify the competition, assess their strengths and weaknesses, and determine the unique selling points of your store.

Your marketing strategy should focus on attracting customers to your grocery store. Determine the best ways to reach your target audience, such as social media, print advertising, or flyers. Plan promotions, such as discounts or loyalty programs, to incentivize repeat business.

Starting or owning a small grocery store requires significant financial investment. Know how much to open or start a grocery store. Plan your finances carefully by identifying startup costs, fixed and variable expenses, and projected revenue. Determine how much you’ll need to finance the business and where you’ll obtain the necessary capital.

The operational plan outlines how your grocery store will function on a day-to-day basis. It includes the store’s hours, staffing requirements, inventory management, and customer service policies.

The store layout is critical in attracting and retaining customers. Consider the flow of the store, the sections and placement of products, and the overall aesthetic of the store. A well-designed layout can help customers find what they’re looking for and increase sales. 

Starting a grocery store requires compliance with numerous legal requirements, including obtaining the necessary permits and licenses, registering for taxes, and complying with safety regulations. Ensure that you understand and comply with all legal requirements.

If you’re considering opening a supermarket, mini grocery, or retail store, the steps outlined above are also applicable. However, there are some additional considerations specific to these types of businesses.

When opening a supermarket, you’ll need to consider factors such as the size of the store, the number of employees required, and the range of products offered. You may also want to offer additional services such as a pharmacy, bakery, or deli to attract customers.

Mini groceries are typically smaller than supermarkets and may specialize in certain types of products such as organic or gourmet foods. When opening a mini grocery, it’s important to carefully consider the product selection, pricing, and target market.

Retail stores can sell a wide range of products, including clothing, electronics, or home goods. When creating a retail store business plan, you’ll need to consider factors such as inventory management, staffing requirements, and marketing strategies. Regardless of the type of business you plan to open, a comprehensive entrepreneurship business plan is essential. It should include market research, financial projections, marketing strategies, and operational plans. A well-crafted business plan can help attract investors and secure financing.

In summary, opening a grocery store, supermarket, mini grocery, or retail store requires careful planning and consideration of various factors. By creating a comprehensive business plan and following the steps outlined above, you can increase the likelihood of success and achieve your entrepreneurial goals.

1.0 Executive Summary

“Jolly Groceries Ltd. ” operating as “Jolly Groceries” (The Company), was incorporated on January 5, 2021, in the state of New York by Neil Stallen and Tim Wilson. Jolly Groceries is a specialty grocery store founded to meet a strong neighbourhood need for quality, Middle Eastern grocery options in the Brooklyn and Downtown New York area. 

The Brooklyn area of Downtown New York currently lacks any good grocers or reliable shops to get fresh or specialty products from the Middle East. Mr. Stallen and Mr. Wilson currently operate another grocery store on the other side of town (Macky Market, 837 Bidwell Street, New York) and regularly talk to downtown residents about their need for a specialty ethnic grocery store in their communities. Aside from offering hard-to-find grocery products in Jolly Groceries, their pricing will be more competitive with 0.5% less mark-up on most international products in the store. 

Mr. Stallen (15 years of grocery experience) and Mr. Wilson (with 10 years) will be co-owners of the store with 51% and 49% share respectively. Their combined experience and leadership will contribute to the success and rapid growth of the Company.  Jolly Groceries’ target customers include Turkish, Iranian, and Arabic immigrants who now live in Downtown New York. They crave the nostalgic tastes of their home country that they can’t find anywhere else locally.  

Jolly Groceries is currently seeking a $250,000 loan under the SBA Loan Program to help with launch activities and essential capital and equipment purchases. The shop plans to open in June 2022.  The Company seeks to contribute to a world where everyone has access to their favourite foods from their home country or region, no matter where in the world they live. These foods from home will be affordable and easy to find or sourced through Jolly Groceries.

2.0 Business Overview

Jolly Groceries is a new specialty ethnic grocery store opening in June 2022 in the trendy Downtown New York neighbourhood of Brooklyn. The store will carry local and international foods from the Middle East and open seven days a week from 9 am to 10 pm to serve the local community and local Middle Eastern Immigrants.

The Company will be a partnership between Mr. Neil Stallen (owning 51%) and his business partner Mr. Tim Wilson (owning 49%). Mr. Stallen currently owns another grocery store (Aria Market) in New York, where Mr. Wilson is the manager. The two partners have a combined 25 years of experience in the grocery industry. 

The store is for the whole community, but the main draw will be for the specialty Middle Eastern products that Aria Market doesn’t have room to stock. It will be physically larger than their Bidwell location, with over 7,000 sq ft of retail space plus 3,900 sq ft of back office, food prep, and inventory storage in the back. 

Jolly Groceries will fill a local need for a local grocery store for residents and tourists alike.  During the summer months, as the tourist population in New York increases, the market expects to see increased demand for their products, which will lead to a growth in sales.  

The Company plans to become a local hub for the local Middle Eastern community. As such, the Company will: 

• never compromise on freshness
• always provide friendly customer service
• Focus on sourcing the best diet-specific foods (including keto and gluten-free products) options for their customers. 

2.1 Industry Overview

The grocery industry is not expected to become obsolete anytime soon. Consumers are looking to get all their everyday grocery staples and specialty items from one place. With the COVID-19 pandemic, many restaurants were shut down, so customers turned to more fresh food and produce, so grocery stores saw a dramatic increase in success and profitability. 

Now, as we’re coming to the end of the restrictions put in place by the pandemic and restaurants are beginning to reopen, the industry is expecting a temporary drop throughout the rest of 2021 as people buy fewer groceries and eat out more. All economic indicators and predictions show this drop to last no more than one to two years before average growth returns for the industry. 

Jolly Groceries keeps a close eye on how consumers’ grocery buying habits are evolving. Consumers are becoming more health-conscious and are looking for healthier produce, organic products, and gluten- or GMO-free groceries. This is a need that Jolly Groceries can cater to. 

2.2 Mission & Vision Statement

Jolly Groceries’ mission is to create a world where everyone has access to their favourite foods from their home country or region, no matter where in the world they live. 

Jolly Groceries’ vision is to become a hub for the Downtown New York community to get fresh local produce and specialty grocery items from the Middle East without travelling far or paying a premium. 

2.3 Goals and Objectives

In terms of business growth, the Company has set the following revenue goals:

• Earning $200,000 per month by the end of year one
• +15% growth during year two
• +25% growth during year three

Jolly Groceries also hopes to become a hub for Middle Eastern immigrants in the neighbourhood. 

2.4 Core Values

Jolly Groceries staff and managers will make all business decisions and day-to-day operations with the Company’s four core values in mind:

• Customer-focused : Jolly Groceries’ priority is satisfying its loyal customers.
• Quality : The Company provides quality, fresh produce and offers personalized, quality service that you expect from your neighbourhood grocer. 
• Compassion : In today’s world, a little kindness can have a considerable impact.
• Goal-oriented: Jolly Groceries believes that goals are an effective growth strategy in business and personal lives.

2.5 Key Success Factors

The success of Jolly Groceries is dependent on the following key external drivers : 

• Per Capita disposable income : As the economy begins to bounce back after the COVID-19 Global Pandemic, the unemployment rate will decrease. This will create a situation where families have increased disposable income to spend on specialty and imported groceries. 
• Consumer Price Index for Food : Food and grocery costs skyrocketed in 2020 during the pandemic. Low oil prices and the depressed value of the American dollar played prominent roles. This index is expected to rise 2.3-3.3% annually for the next five years, parallel to the rise in costs of consumer products in general. 
• External Competition for Supermarkets and grocery stores : With online grocers (like Amazon) and the increasing number of brick-and-mortar grocery stores, there is often intense competition in this sector. Retailers who offer specialized or niched products (ethnic-focus, vegan, gluten-free) will stand out from the competition. 
• Population trends : Population has a direct correlation to the success of grocery stores. As of the last available American census data from 2016, New York’s population was estimated at 633,000 people. About 42% are immigrants , and 6.2% are from West Central Asia and the Middle East.  
• Proximity to key markets : A critical success factor for grocers is opening shops in key neighbourhoods and heavily populated areas . Clear exterior signage and access to parking can provide additional access to food traffic. 

Internal factors that will be pivotal to the success of Jolly Groceries include:

• Maintaining an unwavering commitment to customer satisfaction
• Always providing low-price/high-quality products
• Hiring the right staff to help make the Company a success. 
• Maintaining good relationships with suppliers and distributors.

2.6 Staffing

Many staff are required to keep the store operational. In their experience operating Aria Market on Bidwell Street in New York, they found most of their qualified applicants through in-store signage. For Jolly Groceries, staff will be recruited the same way.  

A few key staff member positions for the store include:

• Cashiers : Applicants must demonstrate an ability to work in a fast-paced environment and keep their cool in the presence of customers. Proven success in providing excellent customer service will be critical, and they must have a collaborative spirit to become a great team player. 
• Cashier and Produce Supervisors : We require store supervisors to have at least three years of experience in a grocery store. This experience means that they understand the inner workings of a grocery store and likely also have valuable leadership skills, which is another requirement for any applicant in this position. 
• Prep Room and Produce Workers : Applicants for this position require a proven ability to work in a fast-paced environment. They must work well with others and can lift up to 50lbs. 

Staff will be paid between $15.65 and $18 per hour in the first year, $16.25 – $19 per hour in year two, and $17 – $20.50 per hour in year three of operation.

2.7 Management Team

Mr. Stallen started his experience in the grocery industry as a convenience store manager for two years. He went on to be the owner of Aria Market for 15 years. He has experience in all aspects of grocery store operations. 

Mr. Wilson will be the store manager as he has extensive experience as the store manager for Aria Market. He will be paid $60,000 per year in year one, $72,000 in year two, and $78,000 in year three. 

Mr. Tim Wilson

I am an efficient and experienced retail sales manager capable of assessing customer needs, managing a team and preparing staff schedules. I am a fast learner who is good at multitasking, prioritizing tasks and ensuring all targets are met or exceeded. 

Academic Qualifications

• B.Sc. in Industrial Engineering| University of Isfahan, Iran | 2009-2013.
• Leadership Preparation Diploma with CO-OP|ISS Language & Career College of BC| 2019.

Work Experience

Retail sales manager | Iran | 2010-2016

• I managed a successful sales territory that showed consistent sales growth of 20% per year.
• I was responsible for managing a team of staff in the place.
• I was responsible for creating employee timesheets and handling requests for time off.
• I was interviewing new staff and determining their suitability.

Store Manager | Aria Market, New York, US | 2018-2020

• I liaised with customers and suppliers daily.
• I am responsible for ordering stock and stock control.
• We are maintaining the high standards of the place.

3.0 Products & Services

To be competitive in the market, Jolly Groceries will reduce its product mark-up. Competitors typically mark-up grocery products 2x, but the Company will only mark up 1.5%.

It is expected that meat and produce will make up the majority of revenue, at 40% and 25% respectively. General grocery sales will contribute 20% of the total business revenue. Overall sales for the first few months are expected to be slower as Jolly Groceries becomes known in the community. Within six months, the Company plans to double its average monthly revenue to coincide with the busy winter and holiday months. 

3.1 Products

Jolly Groceries will mix local and international (mainly Middle Eastern) produce and grocery products. This includes departments for Halal meat, general grocery, nuts, deli, and bakery.

The Company is planning to stock popular, reliable brands of Middle Eastern grocery items, including: 1&1, San Remo, Sadaf, Krinos, Badr, Golestan 

To offer customers the best possible prices, Jolly Groceries will purchase from several reputable wholesale suppliers, including: Krinos Food, San Remo Rods, M&H, Baloot Bakery, Saman Bakery, Van Whole Produce, Fresh direct

To ensure a good mix of local and imported products, we will also offer locally grown produce, including Ambrosia apples, tomatoes, berries, and beets.

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4.0 Operations

The grocery store will open in June 2022 in the trendy Downtown New York community of Brooklyn.

Business Address : 120 Tanker Street, New York, BC

The owners choose this location due to its proximity to a main transportation route in and out of the downtown core. Its corner location includes large windows to entice and attract people from anywhere in the intersection. 

The purchase of this location includes over 10,700 sq ft:

• 7,000 sq ft of retail space
• 800 sq ft office space
• 1,200 sq ft prep room
• 2,700 sq ft storage room

4.1 Equipment

In addition to spending $350,000 on renovations to the existing space, Jolly Groceries plans to make the following purchases: 

• Walk-in cooler and freezer: $18,000
• Lightning: $14,000
• Security cameras: $6,000
• Security alarm system: $7,500
• Shelving: $80,000
• Prep room equipment (scales, sealer, label printer, computer): $7,000 
• Cashier station (software license, computer, scale, printer): $16,000 
• Freezer (purchase and installation): $32,000
• Fridge (purchase and installation):  $90,000

4.2 Inventory

The Jolly Groceries location includes 7,000 sq ft of retail space for inventory and a 2,700 sq ft storage space. The stock kept on-site will change seasonally and will be purchased based on demand. 

Initially, the Company will use $180,000 from the SBA Loan Program to purchase inventory for opening. 

4.3 Health & Safety Guidelines

As a grocery store, all employees and Company will always follow WorkSafe NY guidelines, local laws and bylaws, as well as any particular recommendations and regulations by Public Health. This includes:

• Federal Government food safety laws
• New York Provincial food safety laws
• Local municipal legislation

5.0 Market Analysis

The need to buy groceries isn’t going away anytime soon. However, how and where consumers get their produce and groceries is changing. During the global COVID-19 Pandemic, grocery spend increased by 12% as expected. However, the industry is preparing for a -7% dip in 2021 as the economy reopens and many consumers start eating in restaurants again. This drop will be short-lived until 2023 when the market shifts back to a growth phase.

IBISWorld predicts that supermarkets and grocery stores will begin increasing their stock of ethnic foods over the coming years as the immigrant population in US grows:

“In addition to organic foods, IBISWorld expects supermarkets and grocery stores to increase their stock of ethnic foods. US is culturally and ethnically diverse, with a large immigrant population from Europe and Asia. As immigration is expected to be the primary reason for overall American population growth, demand for ethnic foods in US is expected to increase over the next five years. Consequently, industry participants that devote more retail space to ethnic food products are anticipated to outperform their competitors over the coming years.” IBISWorld

Supermarkets & Grocery Stores in US (NAICS Report 44511CA)

Industry profits are expected to remain relatively stable over the next five years. A key driver for future earnings in this market is the projected increase in consumer’s disposable income. In addition, Americans are becoming more health-conscious. There is increasing demand for specialty produce and products to cater to niche foods, high-end foods, organic items, gluten-free, and non-GMO foods. These products often come with a higher sticker cost, so as disposable income increases, so will spending on these items. 

5.1 Competition

IGA Food Stores https://www.igastoresbc.com/  

Nesters Market https://www.nestersmarket.com/  

Choices Markets https://www.choicesmarkets.com/  

5.2 Competitive Advantage

One of Jolly Groceries’s most significant advantages is that its prices are lower than most of the Company’s competitors. Competitors mark up most products by 2x, whereas Jolly Groceries will only be 1.5x. This extra 0.5 % savings can be passed on to customers. 

Other key differentiators include:

• Always fresh produce : If it’s not fresh or expires before it’s purchased, it will be taken out of the store’s retail area. 
• Unique Middle East Products : The Company plans to sell specialty Middle East grocery products that you can’t find anywhere in Downtown New York. 
• Focus on Quality : The Company will provide high-quality fresh produce and provide quality customer service as the neighbourhood grocer. 

5.3 Risk Analysis

Risk: In a business that provides fresh produce and groceries, rodent control is paramount. Rodents on the premises could mean being shut down by Public Health and could cause health issues. 

To mitigate this risk, rodent traps will be installed in inconspicuous areas of the shop, and fresh produce will be covered overnight.

Risk: The summer months and November through December are commonly busy times for grocery stores. Jolly Groceries expects to see higher revenue during these months. In the lower revenue months, the Company could experience cash flow irregularities. 

To mitigate this risk, extra profits from the busier months will be saved to cover costs during the slower months if necessary. 

Risk : Retail stores are at risk of being hit by vandals and thieves. Stolen goods and damage to the property can be expensive and tarnish the reputation of the business. It can also put the safety of staff and customers at risk. 

To mitigate this risk, Jolly Groceries is installing state-of-the-art security cameras and alarm systems in the shop. These measures are likely to deter or eliminate any thefts or break-ins. 

Risk : Improperly managed stores risk stock building up faster than it can be sold. Excess stock not only creates a mess in storerooms but can also expire more quickly than it can be sold, leading to un-saleable merchandise and a loss of profits. 

To mitigate this, the Company is using the expertise of both partners who understand the buying cycles of grocery products to reliably predict when to reorder products to minimize overstocking and storage complications, especially when it comes to fresh groceries and produce. 

6.0 Sales & Marketing Plan

The Brooklyn area of Downtown New York, where the shop will be situated, has a growing Iranian population. People and families from throughout the Middle East (including Turkish, Iranian, and Arabic) also live in the nearby neighbourhoods of Olympic Village and Chinatown. The store’s primary target customer will live within 20 km from the store, but those from outlying communities who come into the city for work may also stop by for groceries on their way to or from work. 

As much as they love their new home in the US, they have a deep love of the food and grocery products from their home countries. And, when they have relatives visiting from back home, they want to show them that New York has some of their favourite foods.

Some of the foods they find challenging to buy in New York include some authentic dried fruits, dates, spices, herbs, teas, and fresh vegetables. Now that the pandemic is nearly over, their disposable income is increasing, and they can afford to get these specialties from the grocery store again. 

Family is a key value for Jolly Groceries’ target customers. They enjoy eating great food with their friends and family. They may also want to introduce Middle Eastern specialty meals and foods to their American friends. 

The customers living in Brooklyn are also craving more local choices for fresh produce, regardless of their ethnicity. The store will cater to that need in the local neighbourhood. 

6.1 Key Channels

While a large portion of Jolly Groceries’ customers will be walk-ins who pass by on the street from the local neighbourhood, the Company will also be engaging in several marketing tactics to attract customers and keep them up-to-date about the business. 

Social media will be a primary channel, and Jolly Groceries will start with a Facebook Business Page and an Instagram account. The primary goal of these channels is to build up a sense of community by sharing valuable information about the store and community. Mr. Wilson will manage these accounts.

Jolly Groceries will also create a Google listing, so the Company appears on Google Maps. The Company will run Google Ad campaigns to target more specific and localized demographics. 

Print flyers and ads will be created and distributed through US Post to local residences in Jolly Groceries’s target neighbourhoods. 

6.2 SWOT Analysis

Have questions looking to get started, 7.0 financial plan, 7.1 income statement .

7.2 Cash Flow Statement

7.3 Balance Sheet

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Get in touch with us or visit our office

How to Open a Grocery Store in 5 Steps: Getting Started

People always need food and what better place to stock up on the essentials for the week than a grocery store? Due to this demand, many people have thought about opening a grocery store business of their own. Do you know how to open a grocery store? This business idea is similar to opening a restaurant , opening a coffee shop , opening a food truck , or opening a bakery . 

Grocery stores, otherwise known as supermarkets, sell food and household items. They’re the main source for all consumer home food needs. Aside from food, they’re also the ideal place for cleaning products, soft drinks, types of alcohol , and self-care items. Grocery stores are important local resources because they’re the go-to location for so many products. 

In the United States, the grocery store industry is worth $682 billion. Since the 1990s, grocery sales have doubled and are only expected to increase over time. Popular big box chains have grown to dominate the market with their private label brands (see Private Label Definition ) and products. These include Walmart private labels and Target private label brands . 

Despite the intense competition from big-box grocers and other small chains, there is still room for franchise or independent grocers to thrive. If you’re interested in exploring how to open a grocery store, keep reading for the details.

Costs of Opening a Grocery Store 

When you think about opening a grocery store, you might ask, “How much does it cost to open a grocery store?” or you may wonder how to open a grocery store in general. It’s a fair question and an important one. The costs of opening a grocery store vary based on the business model you choose, like a direct to consumer business model . 

Opening a franchise grocery store won’t cost the same as opening a small corner store. For example, franchises require a one-time franchise fee which can cost you between $50,000 and $75,000. A small mom-and-pop grocery store can cost you about $25,000 to $50,000. 

There are other costs that you should also take into consideration. These include supplies, inventory, permits, licenses, and bonds. Renting a location that is already designed to be a grocery store, or deciding against franchising your grocery store, can help you cut your costs.

Grocery Store Startup Costs

In order to calculate the startup costs for your grocery store, you have to figure out the fixed costs, one-time costs, and ongoing expenses. These expenses include the cost of real estate, insurance, wages, business taxes, franchise feeds, inventory pricing, equipment, and signage. 

When it comes to funding your startup costs, you can turn to the Small Business Administration  (SBA). They help new businesses secure startup capital through loans and grants. You can also consider business credit cards.

How to Open a Grocery Store

A grocery store can be run as a brick and mortar shop or an online store. You can decide the type of grocery store business you want to open, including the size and product offerings.

The five steps to opening a grocery store include: 

• Creating a grocery store business plan
• Forming a legal entity and setting up taxes
• Setting up bank accounts
• Obtaining permits, licenses, and insurance
• Defining the brand

1. Creating a Grocery Store Business Plan

All new business ideas should start with a business plan. You should write a business plan that helps you map out the success of your business. It should outline your business model, identify your niche market , and include financial predictions, such as the break even point . 

Consider adding the following points to your grocery store business plan: 

• A thorough explanation of your business idea
• Cost and profit projections
• Business size
• The products you’re going to sell
• Your target market
• A competitive analysis
• The location of your grocery store business
• Potential problems and their solutions
• Potential grants that you can secure

2. Forming a Legal Entity and Setting Up Taxes

Establishing a legal entity is crucial for a business. Common business structure types can include limited liability company or LLC, sole proprietorship, corporation, and partnership. An LLC or legal business entity can protect you from being held personally liable if a situation occurs and your grocery store is sued. 

Before you open a business, you’ll have to set up federal and state taxes through various registration methods. In order to do this, you’ll have to obtain an EIN or Employer Identification Number. 

3. Setting Up Bank Accounts

Having a dedicated banking and credit account for your business is crucial when it comes to personal asset protection. This will help you keep your personal and business assets separate in case your business is sued. 

When you build business credit, you can become eligible for credit cards and financing for your business. This is can help you get higher lines of credit and better interest rates. A business bank account is also required for you to apply for a business loan. You can explore some of the best banks for small businesses to ensure you choose the right one. 

A Net 30 account can help you establish and build business credit. It is also useful for increasing business cash flow. With this kind of account, businesses can purchase goods and repay the balance within a 30-day period. 

4. Obtaining Permits, Licenses, and Insurance

To prevent having your business shut down, it’s best to obtain the proper permits, licenses, and insurance ahead of time. Each state has different licensing requirements. 

It’s best to check your state and local business licensing requirements before opening a grocery store business. Each state and local jurisdiction will have an SBA (Small Business Association). This will help you figure out what licenses and permits are necessary for your business. 

With business insurance, your business can operate in a safe and lawful manner. Business insurance will protect your company’s financial well-being in various situations. You can explore various insurance options and policies based on the risks you want to protect. General Liability Insurance is a great place to start. 

5. Defining the Brand

Your brand is how your business is perceived by the public. A strong brand will help you stand out from the competition. Having a logo will help increase brand association. QR codes can also be great for business cards and publications to direct clients to your website. When defining your brand, be sure to understand the B2B and B2C meaning .

In terms of marketing, you should start promoting your business sooner rather than later. Effective locations to promote your grocery store business include college campuses, apartment complexes, and social media (see Social Media ROI ). Using word-of-mouth advertising and O2O marketing efforts may also be beneficial. 

It's also crucial for you to create a website for your brand. The website should include an about us page , like one of the about us page examples . Don't forget to also create a privacy policy .

How to Start a Grocery Store Online?

Starting an eCommerce grocery store can be a challenging task. However, it’s a profitable business model as the rise of eCommerce sales continues. Here are the steps to do it.

• Choose a suitable eCommerce platform . The main factors for choosing a suitable platform are the number of expected visitors and the integration opportunities. If you plan your grocery store to have clients only from the local area, you can opt for some of the well-known eCommerce platforms. However, if you’re planning to scale and build a nationwide brand, it’s recommended to choose a custom-made solution. So, before you ask yourself how to start a grocery store online, make sure you know what the needs for your future project are.
• Integrate the inventory . Having impeccable integration between physical and online stores is crucial for proper inventory management. If you’re researching how to open a grocery store online, make sure you can integrate the online platform with the current software.
• Marketing is essential . Plan your marketing strategy ahead of time. In fact, you should start running brand awareness marketing campaigns even before the online grocery store goes live. Don’t be afraid to experiment with out-of-the-box marketing ideas. Even though the majority of people who buy from online grocery stores are young, consider solutions for elderly people as well. For example, you can create different subscription plans for people with disabilities or mobility issues. ‍
• Constantly improve the UX . Shopping at an online grocery store should be as easy as (and even easier than) going to the supermarket. Make sure to do various A/B tests that help you improve the UX. If you’re wondering how to start a grocery store that’s profitable and well-recognized online, improving the user experience is a key element.

Grocery Store Business Plan

A successful business starts with a business plan, like a restaurant business plan , winery business plan , or eCommerce business plan . This is no different for a grocery store business. A grocery store business plan will help you ensure that your business is set up to thrive.

Your grocery store business plan should include the following sections:

• Executive summary
• Company overview
• Customer analysis
• Industry analysis
• Financial plan
• Marketing plan
• Operations plan
• Management plan

Within your business plan, you should explain the kind and type of grocery store that you plan to operate. Be sure to include a background of the business. This plan should map out how to open a grocery store.

Your grocery store business plan should answer the following questions: 

• Why and when do you plan to start the business?
• What breakthroughs (sales goals, new store openings, etc.) have you achieved so far? 
• What legal structure (LLC, sole proprietorship, S-corp) are you looking into?

Frequently Asked Questions About Opening a Grocery Store Business

What is a grocery store.

A grocery store is a business that sells a large variety of food and household products. These include fresh produce , meat products , dairy , packaged and canned goods, pharmacy products, household cleaners, and pet supplies. This kind of business differs from convenience stores, warehouse clubs, superstores, and the meal subscription business , like a meat subscription box . 

How Much Profit Do Grocery Stores Make?

Standard grocery stores have an average profit margin of roughly 2.2%. Grocery stores that target the organic, natural, and gourmet target markets see an average profit margin of about 5-10%. 

What Items Are the Most Profitable in Grocery Stores?

The most profitable items in grocery stores include: 

• Prepared foods
• Non-grocery items
• Cosmetics and beauty supplies
• Butcher and wholesale meat
• Deli meats and cheeses
• Over-the-counter and brand name medications

It's important to keep the food supply chain in mind when picking the products for your grocery store. Look into " what is the food supply chain ?", for a better understanding.

How to Start a Grocery Store

Grocery stores sell food and other household items. Often called supermarkets, grocery stores are go-to sources for a home’s food needs. They similarly sell important kitchen utensils, disposable items, cleaning materials, candy, alcohol, soft drinks, and self-care items. Today’s grocery stores are great resources for many products, making them important local resources.

Learn how to start your own Grocery Store and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a grocery store by following these 10 steps:

• Plan your Grocery Store
• Form your Grocery Store into a Legal Entity
• Register your Grocery Store for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Grocery Store
• Get the Necessary Permits & Licenses for your Grocery Store
• Get Grocery Store Insurance
• Define your Grocery Store Brand
• Create your Grocery Store Website
• Set up your Business Phone System

We have put together this simple guide to starting your grocery store. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Grocery Store Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your grocery store?

Business name generator, what are the costs involved in opening a grocery store.

When startup investment is considered, grocery store owners can expect to spend between $70,000-$100,000 on equipment. A good point-of-sale system will require another $40,000. Initial inventory can be a massive investment, sitting around $160,000. Pre-opening expenses, including rent and insurance, can add another $10,000. These expenses, when combined with grand opening advertising, security deposits, and working capital, can easily surpass $500,000.

What are the ongoing expenses for a grocery store?

In some states, you can pay your employees between $7.25-$10 per hour, although in major cities that number could be much higher, and there are also currently 12 states with a minimum wage over $10 per hour. Utilities can be expensive, costing a grocer as much as $5,000 per month, depending on the size of their freezer section. Food needs to be restocked, which is a varying expense. To save money, purchase goods in bulk.

Who is the target market?

Preferred customers are locals. Because the grocery store business is competitive, small grocers thrive on local communities. Many shoppers choose to go to big-box stores like Walmart, Costco, Kroger, or Target for their food. Because of this, a new grocer will need to prioritize small communities, individual households, and college campuses by offering affordable food.

How does a grocery store make money?

Grocery stores generate most of their volume selling processed foods, but they also make money by offering fresh meats and produce, cleaning products, and alcohol.

Grocery store prices vary wildly, as they offer a huge selection of products. Lesser food items may cost as little as $1, while packaged meats can cost as much as $20. As a rule of thumb: offer lower prices for multiple purchases. Again, your low-value offers will win your spot in the local market.

How much profit can a grocery store make?

In 2016, the average American supermarket had total sales over $17 million. However, grocery stores are volume businesses with thin margins, as the average supermarket has a profit margin of just 1% to 3%. Even then, a successful independent store can profit up to $300,000 annually. Of course, these rates vary greatly on the area, the store’s specialty, and its size. For this reason, the average grocery store owner’s typical income is a bit unclear.

How can you make your business more profitable?

The easiest way to increase your store’s profitability is to stock the front of the store with impulse buys. Items like magazines and batteries can have profit margins of up to 70%, meaning that selling just a couple of these items can bring back the same profits as another shopper’s entire cart. Also, diversifying your store by adding amenities like a coffee shop can dramatically increase your profit potential.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your grocery store is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

In most states, it is necessary to obtain a grocer’s license. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

In particular, if you want to sell alcohol at your grocery store, you will need a liquor permit, the specificities of which vary locally.

State & Local Business Licensing Requirements

Grocery store businesses may also wish to look into applying for a resale certificate , which allows retailers to purchase goods intended for resale without paying sales tax. For more information about local licenses and permits:

• Check with your town, city or county clerk’s office
• Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Food Regulations

When selling food, you will need licensing from a local health department, because all establishments serving food are required to pass a health inspection. Check out these tips for faring well on health inspections .

There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business .

Certificate of Occupancy

A grocery store is generally run out of a physical location. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a grocery store.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a store :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your grocery store will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Grocery Store needs and how much it will cost you by reading our guide Business Insurance for Grocery Store.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a grocery store

Grand opening promotion should be widespread. A successful grocery store will promote in apartment complexes, college campuses, nearby stores, and on social media. Because grocery store products have such a steady demand, they cater to a wide-ranging audience. As for marketing, grocery stores survive and thrive from word-of-mouth advertisement. Once your grocery store becomes known for its low cost, high-quality food — or for its unique options — it will market itself.

How to keep customers coming back

Customers will be attracted to your store through typical marketing campaigns, but retention is more difficult. Because a grocery store needs to target mass audiences instead of individual customer types, it needs a “selling point,” which is usually low prices. However, a bit of creativity can create your own allure. Specialize in fresh meat, add a sushi station or hot bar, etc. Find out what local competitors are doing, and offer something different.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Any individual who enjoys point-of-sale work, food, management, or finance can open a grocery store. The grocery business is competitive, but those who have a knack for making strong selling plans, capital-intensive business plans, or retail plans definitely have a shot. A grocery store owner should understand food very well, and they should have a passion for providing the best food around town.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a grocery store?

A grocery store needs to stock a variety of products. They also have to help customers find, carry, and buy them. These products include ethnic foods, organic foods, frozen foods, and more. They must restock any perishable food before its expiration date. Additionally, the grocery store will need to stay competitive by offering low-priced options. Daily management includes cleaning, restocking, auditing, and selling.

What are some skills and experiences that will help you build a successful grocery store?

First, a grocery store must have a competitive pricing plan. It should also have unique amenities, like a fresh meat deli. Some grocery stores gain competitive advantages by offering in-house craft beer stations, too. Over time, a successful grocery store will be a preferred local hotspot. To become this hotspot, you’ll need to browse your area’s demographics—targeting the most lucrative segments.

What is the growth potential for a grocery store?

Grocery stores account for the largest share of food sales within the United States. In 2013 alone, grocery stores accounted for about 90% of the country’s overall food and beverage sales. The food retail industry is a low-margin, high-volume business. It has quite a bit of competition, and much of that competition is from well-established providers. If a small grocer doesn’t create a niche selling point, they may be outclassed by the big-box stores.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a grocery store?

Make sure your highest-selling goods don’t perish quickly. If they do, market the store as a preferred “fresh market” of sorts. Vegan food and other organics are in high demand, and a newly started grocery store can thrive if it creates a niche for itself. That said, any additional costs will need to be leveraged against the revenue gained from your specialization.

How and when to build a team

For a grocery store of any size, your beginning team will probably need to have at least five people. Grocery stores are hard to manage, and you’ll need constant support to micromanage sales, restock inventory, help customers, and provide security. If you’re a small grocer who’s specializing in niche products, you may be able to get by with only having three workers. As your store grows, you’ll need at least ten employees, and possibly far more.

Read our grocery store hiring guide to learn about the different roles a grocery store typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.

Useful Links

Truic resources.

• TRUiC's Grocery Store Hiring Guide

Industry Opportunities

• National Grocers Association
• Franchise opportunity

Real World Examples

• Profiles on several small grocery stores
• Experience of former grocery store manager
• Large grocery store franchise
• Small independent grocery store

Further Reading

• Important information about opening a grocery store
• Information on rising trends in the grocery industry

Have a Question? Leave a Comment!

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10 ways to save money at the grocery store before you're shocked in the checkout line

Using coupons, planning meals in advance and shopping at different stores based on sales can help you save money on your groceries.

Americans feel the pinch at the grocery store and gas pump: Sen. Marsha Blackburn

Sen. Marsha Blackburn, R-Tenn., reacts to President Biden's new student debt relief plan as Americans struggle to pay for groceries on 'Kudlow.'

Does your grocery store bill make you nauseous? 

Grocery bills can rack up very quickly for families. With high grocery prices, it can seem impossible to save money when it comes to food and sustenance for your family. While it can be challenging to cut down on food costs, it's not impossible.

Below are 10 things you can do to save money at the checkout line. 

Food can be a big bill for families. Using coupons, taking advantage of sales and planning meals ahead of time can help you save money.  (Paola Chapdelaine for The Washington Post via Getty Images / Getty Images)

SAVE MORE MONEY: 10 CLEVER WAYS TO CUT SPENDING ON UNNECESSARY ITEMS 

• Don't skip the coupons
• Shop at different stores
• Buy in bulk if it makes sense for your family
• Don't shop on an empty stomach
• Buy generic
• Check expiration dates on items
• Take advantage of cash back credit cards
• Sign up for store loyalty programs
• Avoid delivery

1. Don't skip the coupons 

It can be a pain to go through coupons, but they can save you in the long run. 

Luckily, the process of finding coupons today is easier than it used to be. While stores do offer paper coupons you can still cut out, many stores also have digital coupons that you can pull up on your phone. 

Before heading to the store, look for coupons you can use to bring your bill down. 

2. Meal plan

If you head through the doors of the grocery store with no idea what you're going to cook for the week, you're going to overspend. 

Before you go, think about what dishes you plan on making, check to see what ingredients you already have and then write down those you need. 

Plan out your meals ahead of time and make a grocery list of everything you need before heading to the store.  (iStock / iStock)

When it comes to snacks and meals for the week, take inventory of your pantry and fridge first to make sure you aren't wasting money on duplicate items. 

Once you have your list together, stick to it as best you can.

3. Shop at different stores

Different stores have different weekly deals. One store may be having a sale on fruit, while another may have a sale on chicken.

If you have the time, going to different stores to buy items on sale can save you money. When you have your list together, figure out if any of your items are on sale. If they are, make a note to buy that specific item at that store. 

MISSISSIPPI, KANSAS, OTHER TOP STATES WHERE YOU CAN COMFORTABLY SAVE MONEY

If the multiple stores you are stopping at are far apart, and you'll be spending more on gas than saving, so this hack is not worth it. But if there are stores in proximity, it may be worth the extra trip.

You may have to visit different stores to find the best deals.  (Gabby Jones/Bloomberg via Getty Images / Getty Images)

4. Buy in bulk if it makes sense for your family

Buying in bulk from wholesale stores like Costco can save you money if it makes sense for your family size. 

There are memberships for these stores. So, if you aren't shopping there often, the membership cost may not be worth the price.

You'll also need to keep in mind that you'll need more storage space for larger items. If you live in a small apartment, buying in bulk might not work for you.

Again, compare the prices at stores like Costco to other grocery stores to determine if buying in bulk makes sense for you.  

5. Don't shop on an empty stomach

If you're shopping while hungry, you're most likely going to buy more than you would if you were full. 

Maybe you'll grab a snack while you shop, the cookie aisle will look more enticing, and you will find yourself with more items in your cart than planned. 

Plus, being hungry is distracting. You'll be more worried about getting in and out of the store as fast as you can, so you can get something to eat instead of focusing on saving money.

6. Buy generic

An easy money-saving swap you can make is buying generic rather than buying name-brand items.

FIGHTING INFLATION: EXPERTS SHARE WHAT BEHAVIORAL CHANGES, HABITS CAN SAVE YOU MAJOR CASH IN 2024 

Even just switching some of your purchases to store-brand is a good start to saving money. 

7. Check expiration dates on items

Before you put an item in your cart, especially dairy and meat, check the expiration date. 

It's better to check this while you're at the store, rather than at home realizing that you have a few days to guzzle a gallon of milk. 

8. Take advantage of cash back credit cards

Cash back credit cards are exactly what they sound like. You get cash back for the money that you spend. Since you have to spend money on food, you may as well be rewarded for it. 

You can then use your cash rewards on future grocery purchases. 

Sign up for a rewards credit card that gives you cash back for your purchases.  (Thomas Cooper/Getty Images / Getty Images)

9. Sign up for store loyalty programs

Sign up for loyalty programs at your favorite stores. Signing up can unlock perks, like exclusive deals, special coupons and sometimes even gas savings. 

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Many loyalty programs are free and easy to sign up for, but others have fees associated with them. Make sure you read the fine print before signing up. 

10. Avoid delivery

While the convenience of having your groceries delivered right to your door is hard to beat, this method of shopping is not going to help your wallet. 

If you intend to save money, do your shopping on your own. Make it a more enjoyable experience by popping in a headphone and listening to music while you shop or going shopping with a friend so you can engage in conversation as you look for the items you need. 

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Kroger, Albertsons — still hoping to merge — agree to sell more stores to satisfy regulators

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Supermarket chains Kroger and Albertsons said Monday they will sell more of their stores in an effort to quell the federal government’s concerns about their proposed merger.

The companies now plan to sell 579 Kroger and Albertsons stores in markets where they overlap to C&S Wholesale Grocers, a New Hampshire grocery supplier and operator, for $2.9 billion. Under the initial divestiture plan , announced in September, C&S had planned to purchase 413 stores for $1.9 billion.

It’s unclear if the new plan will satisfy regulators. In February, the U.S. Federal Trade Commission sued to block the $24.6 billion merger between the grocery giants, saying the lack of competition would lead to higher grocery prices and lower wages for workers.

The FTC also said the initial plan to divest 413 stores to C&S was “inadequate” and would give C&S a hodgepodge of unconnected stores and brands, leaving it ill-equipped to compete with a combined Kroger and Albertsons.

Under the updated plan, Kroger would sell its Haggen banner to C&S. C&S would also license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. C&S would also get access to some private-label brands in the stores. Under the proposal, C&S would keep all of the stores open and honor any labor agreements.

“We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come,” C&S CEO Eric Winn said in a statement.

Kroger and Albertsons announced their planned merger in October 2022. The companies say it’s necessary so they can better compete with Walmart, Amazon and other big rivals.

Business | Kroger and Albertsons propose selling off more…

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Business | Kroger and Albertsons propose selling off more Illinois stores in bid for merger approval

Under federal scrutiny over their plans to merge, supermarket chains Kroger and Albertsons said they will sell off about 20 more Illinois grocery stores than originally planned in an updated divestiture plan announced Monday.

In September, the grocery companies said they planned to sell off the Mariano’s brand name and  14 Kroger-owned grocery stores  in Illinois. At the time, a spokesperson for Kroger-owned Mariano’s confirmed that at least some Mariano’s stores would be sold. On Monday, the company said its Illinois divestitures would include a total of 35 Kroger and Albertsons-owned stores.

Kroger owns about 44 Mariano’s grocery stores in Illinois in addition to some Food 4 Less stores; Albertsons owns 183 Jewel-Osco grocery stores in Illinois. A spokesperson for Kroger declined to specify how many stores under which banners would be sold in Illinois.

The companies now plan to sell a total of 579 Kroger and Albertsons stores in markets where they overlap to C&S Wholesale Grocers, a New Hampshire grocery supplier and operator, for $2.9 billion. Under the initial divestiture plan, announced in September, C&S had planned to purchase 413 stores for $1.9 billion.

It’s unclear if the new plan will satisfy regulators. In February, the Federal Trade Commission sued to block the $24.6 billion merger between the grocery giants, saying the lack of competition would lead to higher grocery prices and lower wages for workers.

The FTC also said the initial plan to divest 413 stores to C&S was “inadequate” and would give C&S a hodgepodge of unconnected stores and brands, leaving it ill-equipped to compete with a combined Kroger and Albertsons.

Labor unions and various elected officials have also raised concerns about the impact the merger could have on consumers and grocery workers. In February, Illinois Attorney General Kwame Raoul was one of nine attorneys general who filed a lawsuit challenging the merger in federal court. In a statement at the time, Raoul expressed concern the merger would lead to increased grocery prices and decreased consumer choice “at a time many families are struggling to keep up.”

Under the updated plan, Kroger would sell its Haggen banner to C&S. C&S would also license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. C&S would also get access to some private-label brands in the stores. Under the proposal, C&S would keep all of the stores open and honor any labor agreements.

“We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come,” C&S CEO Eric Winn said in a statement.

The companies first announced their planned merger in October 2022.

The Associated Press contributed. 

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Tom Thumb, Trader Joe’s and Costco plan new stores in D-FW

H-e-b isn’t the only grocery retailer building in dallas-fort worth..

By Maria Halkias

11:37 AM on Apr 24, 2024 CDT

Tom Thumb said it will open the first supermarket in Sunnyvale. Trader Joe’s will open soon in Coppell. Costco has three local warehouse clubs in the works.

A quick look at the growing list of new grocery stores in North Texas shows everyone is active, it’s not only about H-E-B’s major Dallas-Fort Worth expansion.

Tom Thumb will build a new store in Sunnyvale at the Gateway Park retail center on Belt Line Road and Town East Boulevard.

The Sunnyvale City Council approved a $3 million incentive to ensure an opening no later than 2026. The new store is part of a $120 million, 240,000-square-foot new development under construction at Gateway Park. City officials said they are spending economic development funds because they want to get a grocer soon.

The latest on retail openings, closings and trends in D-FW.

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Salser Development Group is building the store. CEO Deric Salser said he’s worked on bringing an upscale, full-service grocery store to Sunnyvale has been a vision of his 25 years. He said the store, which will also have fuel pumps and a convenience store, could open by late 2025.

According to U.S. Census data, the town’s population of 8,392 has a median household income of $152,632 and a median home value of $496,500.

Tom Thumb has stepped up its new store plans this year and last week opened in Frisco , its third new store in the northern suburb. Two more stores are under construction in Forney and Waxahachie and it converted a Grapevine Albertsons to Tom Thumb earlier this year after closing one store. It’s also announced a store in southern Dallas at the redeveloped RedBird.

Trader Joe’s

Trader Joe’s will open soon a 15,476-square-foot store in Coppell at 120 E. Denton Tap Road at the intersection of E. Sandy Lake Road. There’s a Tom Thumb across the street. Trader Joe’s spokesperson Nakia Rohde said she didn’t have a timeline to share but a second Texas store in Sugar Land will also open this year.

Planning documents with the state say the store which will open in late September. Trader Joe’s is renovating a former Tuesday Morning store in Coppell. Tuesday Morning closed all its stores last year after filing for bankruptcy a second time.

Trader Joe’s has five stores in Dallas and one each in Fort Worth, McKinney, Plano and Southlake, but hasn’t opened a new store here in years. It’s got room to grow.

Costco Wholesale

Costco Wholesale, which operates 39 stores in Texas including 13 in D-FW, has three local clubs in the works.

A store in Prosper is scheduled to open on the northeast corner of W. University Dr. and FM 1385 in October, according to planning documents filed with the state.

The Celina Costco will open in January, according to Costco’s website. It’s on the southwest corner of Preston Road and Ownsby Parkway

Costco will open in early 2025 at 310 Center Point Rd. in Weatherford in Parker County. Construction is scheduled to begin in July.

The warehouse clubs are 160,000 square feet and will have gasoline pumps in its parking lot, according to the filings.

X: @MariaHalkias

Looking for more retail coverage? Click here to read all retail news and updates. Click here to subscribe to D-FW Retail and more newsletters from The Dallas Morning News.

Maria Halkias , Staff writer . Maria Halkias has covered the retail scene for The Dallas Morning News since 1993. She has chronicled the stark changes in grocery, malls, e-commerce, major bankruptcies and local retail entrepreneurs.

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Grocery Store Business Plan Template

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‘The bane of retail.’ To prevent theft, many big chains now lock up all kinds of merchandise

Security glass once locked up electronics, sudafed and a few other items. but stores have gotten more aggressive in efforts to confront retail theft..

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Detergent and deodorant, toothpaste, the entire shampoo aisle.

“It’s all locked up,” Corey Potter sighed, describing shelves encased behind security glass at a Target near her Echo Park home. “I hate it.”

Potter recalled once waiting 15 minutes for an employee to unlock a case at another Target location. These days, if she sees several other shoppers waiting for too few frenzied workers, the 30-year-old video editor typically skips items on her list and later does something she doesn’t feel great about: buys more home essentials on Amazon.

“Rather than go to Target and wait,” she said, shrugging, “I’ll just give Daddy Bezos my hard-earned cash.”

Shoplifting is as old as shopping itself. And retailers have long played a game of cat and mouse with thieves, searching for ways to thwart them while still giving paying customers easy access to merchandise.

The true severity and scope of the problem remain an enduring mystery of the free market, as national chains eagerly point to retail theft as a key drag on profits, but are reticent to publicly discuss internal numbers on shrink — the industry term for theft and other types of loss — or specifics of new anti-theft measures. Adding to the murkiness, the issue has become more politicized in recent years as some voters and elected officials in Los Angeles, San Francisco and other city centers clamor for a response to what they see as a worsening problem.

But what is clear to anyone who has shopped at a drug, grocery or home improvement store in L.A. in recent years is that retailers are increasingly resorting to the drastic step of barricading entire swaths of their stores behind lock and key.

Does your drugstore lock up more products than other L.A. stores? We ran the numbers

Drugstores are locking up more products, frustrating shoppers. The Times surveyed stores and found vastly different approaches to preventing theft.

Nov. 21, 2022

Using a tactic once reserved for a few pricey, high-demand items — cold medication, electronics, baby formula and razors to name a few — big chains now routinely lock up almost every type of merchandise. A shopper looking to grab a box of condoms or a $1.99 set of crayons, ointment to remove calluses or a container of instant coffee, now often has no choice but to hit a button to summon a store employee with a key and wait.

Executives focused on their companies’ bottom lines are no happier about taking the drastic step to deter shoplifters. Although they’re in the business of selling as much as possible, they’ve been left to make the seemingly backward calculation that thefts require them to make it harder for paying customers to buy things.

“Locking a product,” a spokesperson for CVS said in an email, “is a measure of last resort.”

Retail theft has become a priority for California leaders in recent years.

In September, Gov. Gavin Newsom sent $267 million to cities and counties to increase arrests and prosecutions of organized retail crimes. A few weeks earlier, L.A. Mayor Karen Bass announced a task force focused on such crimes, following a string of robberies at high-end stores such as Gucci and Yves Saint Laurent that garnered a flurry of media attention and helped further cement a new phrase into the zeitgeist: A smash-and-grab.

In February, California Atty. Gen. Rob Bonta filed criminal charges against a woman he called the ringleader of a retail theft group prosecutors say stole nearly $8 million in beauty products to resell on her Amazon storefront. And last week, the coalition behind a tough-on-crime ballot initiative that would roll back the landmark Proposition 47 by stiffening penalties for some retail thefts in California submitted enough signatures that it appears the measure will go before voters in November.

The initiative was bankrolled largely by big chains, including Walmart, Target and Home Depot.

While the companies work publicly to change California law, they are taciturn about discussing their efforts to stop shoplifters, making it hard to quantify how much more merchandise is now locked up and which stores have embraced the strategy.

Representatives for several of the region’s largest retailers — Target, Vons, Rite Aid and CVS — either didn’t respond to requests to discuss internal deliberations on stemming theft or sent brief statements about their anti-theft measures.

David Johnston, vice president of asset protection and retail operations at the National Retail Federation, said that locking up more merchandise is “an unfortunate necessity” to combat theft and what he characterized as a rise in organized retail crime and violent incidents in stores.

Retailers know that the additional supplies and labor needed to lock up more merchandise cut into their bottom line and frustrate customers, Johnston said, but some have decided it’s a necessary trade-off to keep shelves stocked with often-stolen items such as baby formula and medications.

“Right now, the best approach in many instances is putting it behind lock and key,” Johnston said. “These measures are last-ditch efforts.”

Opinion: Grocery stores used to be my happy place. Then they started locking up the detergent

Locked cabinets safeguarding merchandise are now ubiquitous in retailers. Anti-theft measures like these erode customers’ spirits and our social fabric, even though it’s unclear whether shoplifting has become the national crisis some claim.

Aug. 9, 2023

Joe Budano, the chief executive of Indyme, a San Diego-based company that makes buttons to beckon sales associates to specific aisles, estimated that frustration over waiting for locked merchandise leads to a 10% to 25% reduction in sales, calling the cages “the bane of retail.”

His company also has developed technology — the Freedom Case, they call it — that allows shoppers to open cases themselves using personal information such as their cellphone number or by scanning their face.

More than 40 retailers are testing the Freedom Case in stores, Budano said, including a national chain he declined to name.

To combat theft, Budano said, companies often scrutinize missing merchandise using individual SKUs, the most granular data possible.

“They know all the way down to which flavor of Oil of Olay is most stolen,” he said. “The pace at which things have gotten locked up tells you the magnitude of the problem.”

But that magnitude — which retail industry groups say has reached “ unprecedented ” and “ epidemic ” levels, despite data showing such characterizations are overblown — varies by city.

The Council on Criminal Justice, a nonpartisan research organization, tracked shoplifting trends in 24 cities from 2019 to the middle of 2023 and found that rates were down in more than two-thirds of the cities. New York City and L.A. were the two biggest exceptions, logging increases of 64% and 61%, respectively.

Even in light of the recent surge in L.A., the rate of reported shoplifting incidents in L.A. County in late 2022 was slightly lower than it had been 2014, according to a report from the Public Policy Institute of California, a nonpartisan think tank that analyzed state Department of Justice statistics. During that eight-year period, only three of the state’s 15 most populous counties — all in the San Francisco Bay Area — saw increased rates of shoplifting, a misdemeanor crime defined as stealing goods valued at less than $950.

The report’s author, Magnus Lofstrom, said that rates of reported shoplifting dropped in much of the state, including L.A. County, when stores emptied out during the 2020 shutdowns. But the region saw a steady rise in the summer of 2021, he said, and by late 2022, the most recent data at the time of his report, the rate was at least 10% above the pre-pandemic level.

In recent months, several companies, including the 99 Cents Only chain and Target, have cited theft or shrink as a reason that factored into their decisions to shutter locations.

Charis Kubrin, a professor of criminology at UC Irvine who studies retail theft, said that although some stores lock up lots of merchandise, others cage almost nothing.

“It’s kind of an uneven distribution,” she said. “A mixed bag.”

A Times analysis from 2022 found that stores in higher-income areas locked up fewer items even in places where property crime rates were higher, creating an additional burden for shoppers in certain neighborhoods. And inconsistencies in how locked merchandise is released to customers — sometimes workers hand you items to put in your cart, other times they escort merchandise to the register — raise the same questions of racial profiling that have long plagued retail establishments.

“The owners and employees have wide-scale discretion,” Kubrin noted.

The scale of merchandise theft, Kubrin added, is sometimes overblown by a retail industry happy to pin its problems, which include market forces such as inflation and a shift to online shopping, on stolen merchandise.

Crime, she acknowledged, is part of the equation. As a consumer, Kubrin distilled her frustration with locked merchandise down to the same word many other shoppers used: “Annoying.”

A man posted on TikTok recently that CVS was treating a bag of Werther’s Original caramel candies like a controlled substance and on Reddit someone said the anti-theft measures should force an entire genre of retailer to rebrand themselves:

“Inconvenience store.”

In interviews with five employees at retail locations across the Southland, workers said rushing to unlock merchandise for often-peeved customers has made their slammed shifts more hectic.

“I apologize a lot and I get yelled at a lot,” said a supervisor at a Vons in Pasadena.

But several workers said they understood their employers’ decisions, noting that around late 2021 or early 2022, they’d noticed an uptick in people putting multiples of a single piece of merchandise into big bags and walking out — boosters, as they call shoplifters they suspect will resell the merchandise.

The criminal complaint filed by Bonta’s office this year included text messages suggesting that the defendants, who prosecutors say targeted beauty retailers Ulta and Sephora, used that method.

“I’m not stealing regular I’m going to start filling up my bag quick,” one defendant wrote. “I want to know stuff I can grab.”

Rogelio Madrigal, a shift supervisor at a CVS in San Pedro, started 16 years ago and has noticed changes through the years.

There was a time, he said, when the main thing they locked up was Sudafed. Eventually, items such as Plan B and razors got added and then, a couple years ago, he noticed more people swiping Tide Pods. Now, he mainly sees people walk out with boxes of diapers and cosmetics.

“It was happening before,” he said, “but not as bad as now.”

On a recent morning at a Rite Aid in East Hollywood, the lone cashier greeted customers who walked through a doorway lined with security alarm panels.

“Welcome in,” he said.

Many of the aisles were lined with anti-theft mechanisms, including red magnets at the end of metal prongs holding items like eyelash curlers and an individual plastic cage around a $22 box of lice treatment. Some sections, including all the toothpaste and most of the detergent, were locked behind long, clear cages.

A customer steadying himself with a cane peeked through a cage at a bottle of Tide and shrugged, settling instead on a small container of Persil, one of the few non-caged detergents, before walking to the register.

At a nearby Vons, the greeting cards and candy were out on shelves, but an assortment of school supplies, including a ruler for $1.47, was locked up.

In the medication aisle, a woman with a full cart sighed when she realized that one of the last items she needed — a small bottle of Claritin, an allergy medication — was locked up. She pressed the button and an automated refrain that, during busy hours, rings out like the store’s soundtrack played: “Thank you, someone will be with you shortly.”

Less than a minute later, when a worker with a key ring rounded the corner, her eyes widened in surprise.

“That was fast!” she told him.

“We try,” he said.

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Marisa Gerber is an enterprise reporter at the Los Angeles Times. A finalist for the Livingston Award, she joined The Times in 2012.

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