The internet is powerful, that is a fact, but did you know that around 70% of all retail purchases are still done through Brick-and-Mortar Stores instead of Online? According to the NRF (National Retail Federation), U.S. Retail Sales are projected to hit $3.9 Trillion USD in 2020. If 70% of sales are still done in physical stores, that means $2.7 Trillion USD will still be bought in-store rather than through eCommerce. Part of the fastest-growing segment in Retail is Discount Stores and Off-Price Retailers. Discount Stores are the most profitable of all retailers because the cost of goods (COG), also known as the cost of inventory, is so low. Buying from liquidators like us, Merchandize Liquidators, gives you the lowest cost for merchandise that you find in National USA Retail Stores, often at full price!
What is a Discount Store?
A Discount Store, also known as an Off-Price Retailer, is a retail store offering items at a lower price than regular department stores or online marketplaces. A few examples of discount and off-price stores are TJMaxx, Marshalls, Dollar General, Ollies, and many more. If you want to offer your customers the best deals in town, opening a discount store is the way to go.
How to Start a Retail Business
Retail is fun but a lot of hard work. What’s the most fun is creating a name and theme for the store and seeing happy customers shop while saving money. You’ll have a great opportunity in the local community to hire good workers and help feed their families along with your own. That sounds wonderful, but how do you start a discount store?
Location, Location, Location
Besides coming up with you discount store’s name and theme, you must keep in mind that your store has a physical location! Try driving around your city and suburbs and look at the available commercial real estate. You’ll want great traffic and similar discount businesses surrounding your store. If you pick the wrong location, maybe it’s too nice and surrounded by upscale retail, you might now fit in and you’ll jeopardize your future!
Save Money on Rent
Rent is one of the most important parts of running a successful retail store. Before talking to any landlords about rent, look at the surrounding area that you want to place your store and start googling the addresses of open properties. You’ll often find lease documents with opening rental prices. Now think about your own store and the sales it will need in order to cover the rental cost. If you think the rent is doable, or if you are confident in negotiating down the rate, then you have an opportunity for success.
Discount Stores are also profitable because of Word-of-Mouth Marketing. This type of marketing is when customers have a great experience and tell their family, friends, and coworkers about it. Simply make sure your customers save money and have fun doing it! Keep on stocking the store with great inventory and Word-of-Mouth Marketing will start generating more and more customers for your store!
Inexpensive POS System
Retail software can be expensive!!! Please don’t fall into the trap of buying $25,000 worth of retail software when you can find cheap retail software today. Use a company like Vend POS and save your money for marketing and inventory! You can try it for free to see if it’s the right fit for you!