Modern consumers demand a high level of transparency from the companies that create and sell, the food they eat.
As a grocery store entrepreneur, you can meet your customer’s standards by making sound business decisions.
This includes selecting the right space for your new store, hiring quality employees and making use of reliable technology that can help you manage your business efficiently and profitably.
Find the Right Commercial Space
A grocery store needs a large retail space with high visibility and foot traffic.
In recent years, malls and other large commercial spaces have become vacant as retailers downsize, go out of business, or emphasize online sales.
This means that commercial landlords may be eager to work with you, offering excellent properties at attractive leasing terms.
Furthermore, owners should set up shop in a location that’s an appropriate distance away from competition.
Develop a floor plan based on your product offerings to help you assess the size of store you will need.
Ample parking space is another requirement for any grocery store: Few customers wish to fight for a parking spot just to pick up frozen dinners or dishwashing detergent.
Ideally, rent a space from a newly-closed former store: Your business will already have the advantage of being recognized as a store location. Additionally, you might get shelving and other remaining items at a steep discount.
Grocery Shop Estimates
- Medium Shop – Ksh 200,000
- Large Shop – Ksh 500,000 to Ksh1,000,000
The capital we have listed above is for big groceries and not the ones which are everywhere besides the road. We mean a grocery in a clean and spacious room
Identify a room which does not have very high temperatures.
Groceries contain perishable goods, so it’s always advisable to so store them in a cool and dry place. A good room in Nairobi can cost between Ksh15, 000 to Ksh40, 000 per month. Other towns are even cheaper.
Ensure you buy a fridge to store some of your goods. This is a must have in a grocery if you don’t want some of your products to rot.
Select and Purchase Equipment
Opening a grocery store requires purchasing equipment. Some necessary items will include freezers for perishables,
Use the floor layout plan to envision additional items: The produce aisle, for example, needs carts, sponge matting to hold the fruit and vegetables, misters, plastic bags, weights, and additional shelving to hold less perishable items such as dried fruit and nuts.
Go through the other sections including frozen foods, bakery and the deli area and perform this basic task. Jude Ramsey, author of “The Everything Guide to Starting and Running a Retail Store,” states equipment is often the second-highest cost of starting the business.
You can purchase equipment as an up-front cost, buy it used or opt to lease equipment as a way to keep costs low.
Research and Purchase Technology
Technological devices assist store owners with managing inventory, determining consumer demand for certain products and keeping track of purchases. Find vendors capable of installing RFID scanners and purchase checkout equipment and anti-theft devices. Also assess if you wish to purchase self-checkout stands. While these stands require spending more money up-front as a fixed cost, your variable labor cost will be significantly reduced over time as a result of this expenditure.
Ciree Linsenman explains in the book, “Start Your Own Retail Business and More,” that grocery store owners should also be prepared to buy technology equipment including credit card terminals, point-of-sale or POS software, touch-screen monitors and customer pole displays.
Locate Stock for Store Shelves
You can’t have a grocery store without any food to sell. There are several ways to obtain stock to start filling up store shelves. You’ll want to start off researching prices of a few wholesale food distributors, which is where you will likely get the bulk of your items.
Next, go straight to major manufacturers and see if you can get a discount for buying in bulk.
Finally, consider using local farmers for fresh produce. This reduces the chance of receiving a shipment of fruits or vegetables that has gone bad in transit.
Hire Good Workers
Staff the store with checkout workers, stock clerks, deli and bakery counter employees and supervisors.
You may need to wait a few months into the store’s opening before hiring the full number of workers you anticipate you’ll need. This time will allow you to assess the workflow and consumer demand, thereby enabling you to adjust your labor projections higher or lower.
Obtain a business license from your town council.
In Nairobi you can go to Nairobi County offices which are located opposite Nairobi Law courts. The license can cost between Ksh 7,000- Ksh 15,000.