How To Run A Profitable Retail Store

Managing a brick-and-mortar store is a challenging task in today's business environment. Retailers who are trying to run successful businesses must be more innovative and focused in an uncertain economic and political climate that means increased competition from online retailers, a decline in foot traffic on the high street, and lower footfall on the high street.

An example of a retail business is a department store, which resells goods to the public. Some retail businesses require a large number of employees, while others are smaller, requiring only one or two employees. If you run a retail business, regardless of its size, you have to learn how to do it correctly.

Tips to run a retail store successfully

1. Research

You should always perform market research before launching your business. You can look for comparable retail businesses in your area. You should ask the owner or manager if it's going well, how long they've been in business, and if their product is well received. Don't copy what they're doing. Do it in your own way or in a totally different way.

For example- If you are opening a quilt shop in your area, you might want to try something different in order to attract other customers. If quilters buy supplies from you, you can provide them with a space to work for a small fee or even free. Adding a quaint coffee shop where people can read is a great idea if you wish to open a retail book store.

2. Business Plan

For any business to succeed, it needs a plan. In your business plan, you outline everything you want to accomplish with your retail store. This plan specifies what kind of goods or services you wish to offer and to whom. Business plans allow the owner as well as employees to determine what the focus of the company should be so that everyone can strive towards that goal. From businesses selling bottled and jarred packaged goods to the ones selling clothes and jewelry, a business plan is extremely important.

3. Advertisement

It is unlikely that people will come to your business if they do not know its location. Spread the word about you and your services as much as you can. If your business is local or you have a very targeted audience, you can send out emails as an advertising option. Advertising can also be done by making commercials and sending flyers. Ask your customers to promote you with word of mouth. Marketing your retail store on social media is also a great idea and it will encourage customers to visit it physically.

4. Enhance your retail store’s exteriors

Even if you can't change your store's physical location, you can maximize its appearance regardless of whether your store is in a retail strip mall or an industrial park and your customers come specifically to your store.

Look at your store's exterior, especially if you use a rear employee entrance every day. How does it appear to visitors? Is there professional signage identifying the name and purpose of your business? Do you need it painted or cleaned professionally? Displaying merchandise and enticing people with signage is one way you can utilize large windows. Are the merchandise and signage rotated quarterly?

5. Enhance your retail store’s interiors

Following your assessment of the outside of your store, write down what needs to be improved. Step through your store's front door as if you were the first person to walk through it. When a customer walks into your store for the first time, all it takes is seven feet and seven seconds to leave a lasting impression. It is the store itself that leaves a lasting impression on customers.

In-store marketing efforts such as store design, merchandise presentations, visual displays, and promotions will result in higher sales and profit for retailers. Retailers know this well. Do the windows and doors need to be cleaned? Is the carpet in good condition? Does it look worn, frayed, dirty? Are your entrance mats curled, thus posing a trip hazard? When people walk into a store, they usually look to their right to see what they will see first. What product display will they see first? How would you describe your store to others?

6. Merchandising

Merchandising involves selecting products, designing displays, packaging, and pricing products that stimulate and entice customers to buy. The bottom line: Your retail success depends on your products. The products displayed on your showroom shelves should be used for a specific purpose and targeted at a specific customer base. A variety of styles, price points, and options should be offered in each product category- a good, better, best selection will be an appealing mix of products that meet the needs and wants of the majority of shoppers.

• The power of a picture cannot be overstated
• Lighting makes all the difference
• Color can influence shopper behavior
• Attention is captured by the sound
• Scents have an effect on behavior

7. Service

Retail companies sometimes succeed only to the extent that their weakest employees allow them to. When hiring new retail employees, ensure they are aware of your company's business plan and encourage them to work hard to achieve it.

Ensure your employees are appropriately dressed for work. Create a dress code for your staff if your office has customers who can see them.

Customers, even those who are difficult, deserve respect from employees. Let employees leave outside concerns at home so that their work environment stays stress-free. When employees are chosen carefully, they can become a second family, working hard to ensure the success of your business.

It is ideal for your staff to know the products you have in your store. It is imperative that they understand what the product is, what its features and benefits are, and how to sell it effectively. Create category experts among your sales force. It's impossible for people to be experts in every category when your store has 5,000 products, but you can hire individuals who specialize in each category. If you are a retail business that has spirit bottles for sale, your staff should know how to persuade the customers to buy them.

8. Repeat Business

You want to keep your customers coming back once you get them. Create a punch card program to keep them motivated. Give a discount on a purchase or a free item to customers who reach a certain number of punches. Send emails to your customers when you have special sales to attract them. Provide postal options for customers without email addresses. Mail out bulk mailings to people in your local area who are not on your mailing list. Coupons can be used to increase sales and entice new customers.

Conclusion

So, these were the 8 basic tips to run a profitable retail store. Yes, owning a retail store and managing it comes with millions of responsibilities, but you can reduce the stress by hiring trustworthy and hard-working employees.