Retail formats include department stores, supermarkets specialty stores, and online retailers. They play an important role of connecting customers and manufacturers. A retail business plan is crucial if you want to start a new, expand your current, or purchase an existing retail business.
In future, there will be fewer, better stores. With smaller portfolios of stores, retailers will be able to invest more to ensure these stores meet the needs of their consumers. During this period of disruption in retail, innovation has continued with many retailers taking the opportunity to reconsider the role their physical stores play in delivering the overall customer experience.
As traditional retailers are closing stores and reducing the size of their store portfolios, a new wave of stores are opening, bringing new brands, services, and experiences to the industry. Traditionally, concept stores have been small outlets in carefully chosen locations to test new concepts and new technology with limited risk. However, we are increasingly seeing retailers innovating at scale; opening large concept stores. Large format retail will therefore increase.
In the grocery sector, innovation has focused on small urban store formats, where there is more margin to play with and is redefining the nature of convenience around the customer experience and sustainability. The way that consumers shop evolves the model of retail, which adapts to meet consumer needs and behaviour.
New Models of Consumption
A focus on more sustainable models of consumption is creating opportunities for new brands, services and platforms to emerge, focused on re-commerce and thrifting as consumers look to recycle and reuse the products they buy. Consumers want to buy products and follow fashion trends and they want the freedom to express their individuality and personality through establishing their own personal edit.
Social is the new shop window: the place that consumers browse to find ideas and inspiration. With the rise of social discovery, comes the rise of the social influencer in retail. Retail sales rose 2, 6 % year-on-year in November 2019, following an upwardly revised 0, 4 % increase in October, and beating market expectation of a 1, 5 % gain. It was the strongest rise in retail activity since April, likely influenced by Black Friday discounts. On a seasonally adjusted monthly basis, retail sales advanced 3, 1 %; after a revised 0, 1 % gain in the previous month.
Higher sales were recorded mostly for food, beverages and tobacco (6, 2 % versus 4, 8 % in October); general dealers (3, 2 % versus 0, 7 % in October); household furniture, appliances, and equipment (3, 2 % versus 3 %); and textiles, clothing, footwear and leather goods (2, 7 % versus -0, 6 %). Conversely, pharmaceuticals, medical goods, cosmetics and toiletries was the only category posting a decrease (-1,9 % versus -0, 6 %).
Key elements of a coherent Retail Business Plan:
•Executive summary: This section gives readers an overview of your business. It includes the goals and objectives of the company. Introduce your business and state your mission and vision.
•Business summary: Discuss the company structure and ownership, general location, and products and/or services.
•Market research: This section describes your target market and consumers. It should outline the size of the market, as well as the demographic and psychographic profile of the people who would buy your products. This section also considers competitors,market trends, and forecasts.
•Marketing plan: This section discusses your position in the market, competitive edge, pricing strategy, branding strategy, promotional tactics, sales process, and retail experience.
•Management plan: The management plan describes the management team, staff, resources, and how your business ownership is structured. Provide readers with insight to your organisational structure.
•Logistics and operations plan: Detail all the processes that need to occur to deliver your products to customers.
•Financial projections: Documents including the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortisation schedule, and fixed asset schedule of the business. Ratios, charts, graphs, and calculations are included.
•Annexures: Include statutory information required by funders in an application (contact DTC for the complete list).
At DTC…
We understand the complexities of the criteria and requirements for an accurate and detailed business plan. Our developments are often used to create a vision for businesses, secure funding, secure non-repayable business grants, attract team members and/or manage the company. No matter the use of the plan (to raise funding and/or non-repayable business grants), we guide you through the process and provide access to our funding network.
For more information and assistance with your Retail Business Plan – Contact us