retail store business plan pdf

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Retail Business Plan Template – 14+ Word, Excel, PDF Format Download

Whether one is planning to have a restaurant or a cafe, or just venturing on any other retails and online store, it is necessary that you have a retail plan to make your job easier. It helps you analyze and review business commitments. The business action plan acts in providing a detailed account of one’s financial strategy, and offer makeshift plans involved in fulfilling these designed strategies. You May Also See Shop Business Plan Templates .

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14+ SAMPLE Retail Business Plan in PDF | MS Word

Retail Business Plan | MS Word

14+ sample retail business plan,  a retail business plan, benefits of having a business plan, elements of a retail business plan, how to write a retail business plan, why is a business plan necessary when starting a retail business, what are acceptable retail margins, how do you boost gross profit margins.

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What is  a retail business plan, 1. provide a brief description of your business., 2. incorporate data from the target market’s and industry’s analysis, 3. justify your products, 4. attend to operational requirements, 5. establish a formal organizational framework, 6. analyze marketing, 7. develop a financial strategy, share this post on your network, you may also like these articles, 12+ sample hr induction plan in pdf | ms word | google docs | apple pages.

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Retail Business Plan

A retail business plan is a document that gives you and your potential investors a roadmap on how your new retail business intends to get started and deliver its business goals over its initial few years (usually 5 years).

It is usually broken down into sections about the company, the industry it operates in, the competition it will face and a plan that covers marketing, financials and operations over the first few years in business.

Also check out this one-page Business Model Canvas for a retail business .

Retail Business Plan Template

You can download this free retail business plan template from the link below. You will be able to edit the word file and export it into PDF format afterwards.

In the coming sections, we will explain the different components that go into the retail business plan, which you can then apply to your own plan when completing the template.

Check out more free downloads .

Executive Summary

We recommend writing the executive summary at the end of the process, after you have filled out all the other sections in the retail business plan template.

In the executive summary you will cover the following points briefly:

• Types of products sold at the store
• Customers served by the store
• Company mission & vision
• Market share to be captured

You will also mention the total amount you will need to start this business, backed by the financial plan you prepared as part of this business plan.

The total amount that you want to borrow or have invested in your business will be the sum of pre-opening costs (initial inventory, equipment, rent,..) and the maximum negative cash flow as per your cash flow plan.

If you are writing this retail business plan for a financial institution to get a loan, mention how you expect to repay the loan, and you should have already included the loan installments in your financial plan.

If you are writing this plan for investors, mention how much equity they will receive in return for this investment and the expected return on investment, and expected cash distributions (dividends) based on your financial plan.

For example

An investment of 100,000$ in the business will result in the investor receiving 20% equity. We plan to distribute 50% of the profits every year, and based on our financial projections this will be a xx,xxx$ in the first year, xx,xxx$ in the second year, and xx,xxx$ in the third year,..etc.

Company Overview

Here you will write about your business and give a brief overview about the type of store you will be starting.

You can cover the following points:

• Store category (e.g. beauty store, toy store)
• Store location and brief description of the area
• Product categories carried
• Company legal structure

Industry Overview

Write an overview about the industry (retail/ecommerce) as a whole and the most recent trends specific to this industry.

Cover areas such as:

• Total retail sales
• Contribution of your retail category to the total sales (size of the market)
• Online vs. Brick & Mortar trends
• Recent industry trends and shifts in terms of products you are selling

You can find the most recent insights about retail in our Retail Statistics page.

Read Also: What is Retail ?

Target Market

Write about your target customers that you know will be interested in your products. Mention demographic and psychographic details in this section. This will help afterwards in drafting your marketing plan.

You can cover the following details:

• Age bracket
• Income level
• Educational level
• The specific needs that your products will fill for them

FOUNDATIONS OF MARKETING

• Learn the fundamentals of marketing
• See how they apply to buying, merchandising & pricing
• Real-life case studies and examples

Competition

List the current competition in the market that are serving your target customers. Mention your top 3 competitors in your area.

You can also include indirect competition, such as online stores or marketplace sellers, if you think this might affect your business.

Cover information about:

• No. of stores
• Size of stores
• Product categories they sell
• Pricing level
• Sales per day estimates
• Strengths & Weaknesses

You can also create a summary table like the one below

Competitive Advantage

What will make customers leave the competition and come to you? Use the weaknesses areas that you mentioned about the competition in the previous section, and mention how you will improve on them.

This could be by:

• Superior quality
• Better prices
• Convenience
• More variety
• Better shopping experience

Marketing Plan

Describe your marketing strategy for your store and which channels you are going to use.

Cover the following areas:

• Brand Positioning
• Branding Strategy (Persona, tone, language,..)
• Product Strategy (Key products and product features that will attract your customers)
• Pricing Strategy
• Promotional Strategy
• Marketing Channels

Operations Plan

Write how you will operate your store and include details about your manpower plan.

This will include the management that you will hire for the store, visual merchandisers, sales staff and cashiers.

Cover the following:

• Management structure (store manager, supervisor,..)
• Staff plan (3 sales associates, 2 cashiers, etc.)
• Brief role descriptions
• Compensation structure

Read Also: Retail Scheduling

RETAIL OPERATIONS MANAGEMENT

• Managing Store Operations
• Areas of Responsibility
• Assessing & Managing Performance

Financial plan

List estimates for the capital you will need to start and financial projections for the following years.

Capital Needed

Start with how much capital you will need to start the business

This will include:

• Initial rent
• Initial product order (Inventory)
• Initial staff salary
• Store fixtures
• Store equipment

Read Also: How Much Capital You Will Need For a New Retail Store?

Financial Projections

Include a 5-year financial projection for the business based on your forecasted sales and costs.

• Monthly income statement (P&L) for the first year
• Yearly income statement for the following 4 years
• Monthly cash flow projection for the first year

Learn how to create a sales budget for a new store, and 3 years financial projections in our Retail Budgeting Course

RETAIL BUDGETING & PLANNING

• The step by step retail budgeting process
• Set monthly targets adjusted to seasonality
• Templates download & practice exercise

Break Even Point

Include a snapshot of the 5-year P&L plan here and mention the SPD (sales per day) you need to breakeven, based on your P&L numbers.

We have created a sample table with retail data in the business plan template, and you can fill it with your own numbers.

Key Assumptions

Mention the assumptions you used for creating your financial projections.

For example , you assumed that sales per day for the first year will be 1000$ and then will grow by 20% in the second year, 15% in the third year and 10% in the fourth year, etc.

Retail Business Plan Tips

Sales projections.

We recommend being very realistic about your initial sales per day projections, as your entire financial plan will be directly affected by it.

When you then forecast your growth for the coming years, you should also be realistic about how much you will grow year-on-year.

From our experience, retail stores typically see higher growth after the first year and then this starts to level off from the third year onwards.

Having said that, there might be other growth drivers that can affect your business and accelerate your growth in the following years. This could be for example that your new store is in an area that is still under development and will be fully developed by the third year.

What we want to say is, do your due diligence thoroughly and based on that set realistic expectations.

Inventory Projections

The biggest asset you will hold and the biggest part of the investment/loan you will need to start your retail business will go for inventory.

So it is important to calculate your inventory needs correctly.

This will be based on your sales forecasts and the inventory turnover rate you expect or the forward stock cover you intend to maintain.

For example, if your inventory turnover target is 2, this means you maintain a 6 months cover. If your inventory turnover is 3, you maintain 4 months stock cover,..and so on.

We recommend checking out the benchmarks we have listed for different retail categories for inventory turnover and reading our complete Open to Buy guide to get started with calculating exactly how much inventory you will need.

Good luck in your new venture!

THE PROFESSIONAL RETAIL ACADEMY (PRA) ™

• In-depth retail management courses
• Learn the best practices of the industry
• Download ready-to-use professional templates
• Get certificates of completion for each course
• One membership = Access to all courses

More Resources

Thank you for reading this article on Retail Business Plan. We recommend the below free resources as well:

• Retail Management
• Starting a Retail Business
• Buying a Retail Business

Join the academy and get all access to all our resources, which will help you manage your retail business more efficiently.

CONNECT THE DOTS

Learn how to manage a retail business end-to-end.

We’ve put together a curriculum, specifically designed for retail owners or retail professionals who want to advance into senior management roles.

Learn how to connect the dots of the business and take the basic knowledge to the next level of application . 

Retail Store Business Plan Example

Regardless if you’ve been operating for a long time already, by writing up a business plan for your retail store, you can get an overview of what you want to achieve with your business, and guidelines for how you’ll achieve your goals. A retail business plan is a solid foundation for the success of your business, whether you seek funding or not. It helps you see clearly what your business looks like and how it’s positioned in your target market. If you need to get funding, your retail business plan will work as proof that you and your business are good for investment. Studies suggest you can double your chances of securing a loan with a business plan and grow your business.

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• 1. Retail Store Every day you get our best. Business Plan [YEAR] John Doe 10200 Bolsa Ave, Westminster, CA, 92683 (650) 359-3153 [email protected] https://upmetrics.co
• 2. Table of Contents Executive Summary 4 Company Profile Summary 5 Market Research Summary 5 Marketing Summary 5 Finance Summary 5 Company Profile 7 Business Overview 8 Company History 8 Management 8 Location 8 Legal Structure 9 Vision & Mission 9 Market Research 10 Industry Profile & Market Size 11 Local Market 11 Target Market 11 Competitor Analysis 12 GT Pet Foods 12 Features 12 Strengths 12 Weaknesses 12 Smith Pet Boutique 12 Features 13 Strengths 13 Weaknesses 13 Keys to Success 13 Customer Survey Summary 13 SWOT Analysis 13 Sales & Marketing 15 Products and Services 16 Pricing Strategy 16 Marketing Strategy 16 Primary Marketing Activities 16 Marketing Objective 17 1 / 27
• 3. Positioning Statement 17 The Sales Process 17 Strategic Alliances 17 Operations 18 Location(s) 19 Legal Issues 19 Insurance Issues 19 Human Resources (Or Team) 20 JOHN DOE 20 JOHN DOE 20 JANE DOE 20 Process/Production 20 Risk Assessment 20 Financial Plan 22 Startup Funding & Capital 23 Start-Up Costs 23 Sales Forecast 24 Cash Flow 24 Projected Profit & Loss 24 Appendix 25 2 / 27
• 4. Easy to use Business Plan Software Get started using a business plan template is always the fastest way to write your business plan, but as you know, you can't just fill in the blanks along with a template. You will need a collaborative tool that guides you on every step of your planning. Upmetrics can help. With Upmetrics, you can easily bring your team to write a professional business plan with automated financial forecasts. You can also do: 200+ Sample business plans Get access to hundreds of sample business plans covering almost all industries to kick start your business plan writing. This helps you to get an idea how the perfect business plan should look like. View Sample Business Plans Step-By-Step Guide You'll receive step-by-step instruction as soon as you select any business plan template. We made business planning easy with prompt help and examples on every step of your business plan writing. See How It Works Conduct accurate financial projections Do not worry about not having accounting skills. With Upmetrics, Simply enter your sales and costs figures, and we'll prepare all of your monthly/quarterly and yearly financial projections. See How It Works [YEAR] Business Plan | Retail Store 3 / 27
• 5. 1. Executive Summary Company Profile Summary Market Research Summary Marketing Summary Finance Summary [YEAR] Business Plan | Retail Store 4 / 27
• 6. An Executive Summary is the first and most basic piece of the accomplishment of the business plan. The Executive Summary offers an abstract of your business plan and features the key focuses you need to address in the rest of your document. This chapter of your business plan is urgent in light of the fact that it is the place you should catch the reader's attention with the goal that the person will be constrained to keep reading. Company Profile Summary Start Writing here... This section is an overview of your basic business. It describes what business you are in, what your business will do, what are your goals for your business. This section includes the following: Market Research Summary Start Writing here... This section is a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulation. Marketing Summary Start Writing here... This section should define the basics of your marketing plan. It should disclose who the customers are, where the business is conducted, and the products and services that will be sold. List a set of marketing strategies are you're going to apply. Finance Summary To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 5 / 27
• 7. Start Writing here... Your financial summary should provide your company’s current value as accurately as possible. In this section, you should consider adding charts, tables, and graphs to guide your investors and readers with the figures in your company. To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 6 / 27
• 8. 2. Company Profile Business Overview Company History Management Location Legal Structure Vision & Mission [YEAR] Business Plan | Retail Store 7 / 27
• 9. Note: Don't try to get creative when writing this section. Use easy-to-read, common terminology that people can relate to. You never want to assume that those reading your business plan have the same level of technical knowledge that you do. Business Overview Start Writing here... It should include your business structure, Established year, legal name, location, and the goods or services offered. Company History Start Writing here... This section is not for startups, If it's already an established organization, let's say a few words about company history and achievements. Management Start Writing here... In the Management section, the information included should show that your retail business has the necessary human resources to be successful. This part answers questions about your key management personnel and their backgrounds, explains how the store will be staffed, and details all personnel compensation and benefits, including employment policies and procedures. Location To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 8 / 27
• 10. Start Writing here... Where does it locate? if you have multiple branches write down about them all. Legal Structure Start Writing here... Describe legal structure here Vision & Mission Start Writing here... This is when you really start getting into the core of why your business exists, what you hope to accomplish, and what you actually stand for. To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 9 / 27
• 11. 3. Market Research Industry Profile & Market Size Local Market Target Market Competitor Analysis Keys to Success Customer Survey Summary SWOT Analysis [YEAR] Business Plan | Retail Store 10 / 27
• 12. Industry Profile & Market Size Start Writing here... The industry profile section describes data centered on an area of business that outlines and describes the major components of that area. Profiles often provide an overview of the industry and may make projections about future trends. Based on market research describe the size of your market. The example is as shown below : Available Market 10k Served Market 7k Target Market 5k Local Market Start Writing here... It is a retail industry, there should always include some data related to the local market. What is the location of the current market? where the potentials customers are located around the market? Target Market To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 11 / 27
• 13. Start Writing here... To define a target market for your business plan, you should research the potential buying audience for your product. This could range from a few thousand individuals if you are opening a retail store in a small town. If you are catering to the consumer market, narrow your potential customer base to a defined demographic group. By doing so, your business will not only be more Competitor Analysis It's important for new businesses to complete a competitive analysis during the business planning stage. Competitive intelligence can also be useful for marketing, pricing, managing, and other strategic planning for retailers at any stage of their business. Before you can know your competitive edge, you must know your competitor. Here is an example of a competitive analysis of the few GT Pet Foods Features Open to customer feedback on products to carry Strengths Canada's largest chain of pet food stores specializing in natural, holistic and organic foods and supplements! Health food store for pets Weaknesses Limited selection of products and services Each store does not have the same level of knowledge ability or service Smith Pet Boutique To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 12 / 27
• 14. Features Responsive to the local community in offering premium pet food products and pet care advice Strengths Locally responsive premium pet food store – owner is extremely knowledgeable and known in the community High-quality products Weaknesses New store so will need time to establish credibility and build reputation Keys to Success Start Writing here... List keys to success your business, For retail business most effective keys to success if store location. How many possibilities of getting more customers based on location? Customer Survey Summary Start Writing here... The customer survey is an essential part of your business plan, By conducting a survey you know what are the market needs? What exactly the customers are looking for? SWOT Analysis To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 13 / 27
• 15. Strengths Experience and understanding of the fashion industry Unique shopping experience with exceptional customer service Great downtown location The large and growing consumer base S Weaknesses An untested market in Pleasantville While the market is large, it is a niche market (Baby Boomers) W Opportunities The outstanding shopping experience will lead to repeat business Growing online clothing store Booming Boutique Establish a Booming Boutique clothing line O Threats Cost and effectiveness of marketing to women “Baby Boomers” New retail shops that may or may not open in the future T [YEAR] Business Plan | Retail Store 14 / 27
• 16. 4. Sales & Marketing Products and Services Pricing Strategy Marketing Strategy Primary Marketing Activities Positioning Statement The Sales Process Strategic Alliances [YEAR] Business Plan | Retail Store 15 / 27
• 17. Products and Services Start Writing here... This section of the business plan is most important to retailers in the midst of developing a business. The Products and Services section describes the goods and services offered, how they are provided, information about the vendors, and any plans for the future growth of your product lines. Pricing Strategy Start Writing here... Describe which pricing strategies you are going to use to acquire more and more customers? Before you can determine which retail pricing strategy to use in determining the right price for your products, you must consider the product's direct costs and other related expenses. These two key elements of overall product cost are termed the cost of goods and operating expenses. Marketing Strategy Start Writing here... A retailer needs to decide as to what it wants to achieve for its customers. It has to decide the target market and then select the appropriate combination of product, price, place, and promotion to create his marketing strategies. Primary Marketing Activities Start Writing here... List out the marketing activities or campaigns you are going to run as a part of your marketing strategy. To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 16 / 27
• 18. Marketing Objective Start writing here... The overall objective of retail marketing is creating and developing services and products that meet the specific needs of customers and offering these products at competitive, reasonable prices that will still yield profits. Positioning Statement Start Writing here... The positioning statement is defined “as the design and implementation of a retail mix to create an image of the retailer in the customer's mind relative to its competitors. The Sales Process Start Writing here... This section describes how you are going to sell your products or services. Don't go into detail just define the process with a few steps. Strategic Alliances Start Writing here... List of strategic alliances with other retail outlets or service providers from where you can get leads. To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 17 / 27
• 19. 5. Operations Location(s) Legal Issues Insurance Issues Human Resources (Or Team) Process/Production Risk Assessment [YEAR] Business Plan | Retail Store 18 / 27
• 20. This chapter describes the outlines for separate operations and development sections for your retail business plan. Under operations, divide your contents by typical business functions such as Locations, accounting, administration, marketing, legal issues, human resources and technology, Production, and Risk assessment. Location(s) Start Writing here... Detailed descriptions about store locations, Proper site selection for your business influences whether you succeed or fail in making money. Your business location analysis should take into account demographics, psychographics, census, and other data. Although a great location may not guarantee success, a bad location will almost always guarantee failure. A new Legal Issues Start Writing here... For the retailer, the Most common Legal issues are considered as Business License, Food safety license, Non-Disclosure Agreements, Zoning, partnership agreements, etc. Insurance Issues Start Writing here... Store insurance requirements to save it from physical disasters. To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 19 / 27
• 21. Human Resources (Or Team) So-called retail Staff, Includes Management Team, Salesman Team and Supplier Team, etc. JOHN DOE Manager- [email protected] Describe his skills, Achievements and experience. JOHN DOE [email protected] Describe his skills, Achievements and experience. JANE DOE [email protected] Describe her skills, Achievements and experience. Process/Production Start Writing here... For retail, Goods are coming from either self-manufacturing units or some third party suppliers, Define your inventory process and goods supply chain. Also, describe where the raw materials are coming from? Risk Assessment To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 20 / 27
• 22. Start Writing here... This section is for actions that has been undertaken for assessing risks. To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 21 / 27
• 23. 6. Financial Plan Startup Funding & Capital Start-Up Costs Sales Forecast Cash Flow Projected Profit & Loss [YEAR] Business Plan | Retail Store 22 / 27
• 24. One of the more difficult parts of the business plan, the Financial Plan, involves the company's revenue and profitability model. This part of your business plan assesses the amount of capital the retail business needs. It also addresses the proposed use of these funds as well as their expected future earnings. The financial plan includes Break-even Analysis, Sales Forecasts, balance sheets, and cash flow statements. Make sure you break down the financial on a Startup Funding & Capital Start Writing here... Enter the funding information, How much money you're going to borrow either from investors or bank loans? Start-Up Costs Start Writing here... We have automated financial forecasts to calculate summary startup costs, Input numbers into financial modeling and it all calculate your summary costs and necessary metrics. To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 23 / 27
• 25. Sales Forecast Choose the product revenue stream in a financial modeling tool, enter the price, production volume, and inventory tracking information it will calculate revenue summaries. Cash Flow Under this section add a cash flow report to generate reports use our automated financial forecasting tool. Projected Profit & Loss Under this section add an income statement report to generate reports use our automated financial forecasting tool. To unlock help try Upmetrics!  To unlock help try Upmetrics!  To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 24 / 27
• 26. 7. Appendix [YEAR] Business Plan | Retail Store 25 / 27
• 27. Start Writing here... A business plan’s appendix is like its own mini-library. It holds the entire plan's supporting documents in a clear, well-organized fashion. The appendix consists of an array of documentation that ranges from receipts and bank statements to contracts and inventories. It should be used on an as-needed basis and include only essential information. To unlock help try Upmetrics!  [YEAR] Business Plan | Retail Store 26 / 27
• 28. Want to make it more presentable? Want help tips on each section? You'll save time and can write your professional business plan effectively and faster with Upmetrics' business plan software. Every feature you need to convert your great business idea into a reality. Write your plan easily and faster without any hassles. Structure your idea and create stunning pitches that awe your investors. Get access to Upmetrics software, invite your team members and start writing your business plan. Join over 100k+ entrepreneurs who have used Upmetrics to create their business plans. Start writing your business plan today 1. Get tried and tested tips Upmetrics business plan builder gives you everything you need to stay in sync and guides you on every step of your business plan writing. 2. Write an interactive plan Use our business plan sections - competitive Analysis, comparison tables, SWOT Analysis, charts, timelines, milestones, etc to create a visually impactful business plan. 3. Stunning business plan cover pages Upmetrics business plan builder comes with beautifully designed cover pages. Choose professional, creative cover pages to make your business plan stand out. 4. Financial forecasting With Upmetrics you don’t have to worry about navigating complex spreadsheets. Just input your numbers and we’ll provide you with well-structured financial reports that you and your investors understand. 5. Share easily with anyone Upmetrics plans are easily shareable in pdf and word documents. And if either doesn’t work, you can share it with a quick link too and track the reader's activity! 6. Real-time and Collaborative Invite your team members to initiate conversations, discuss ideas and strategies in real-time, share respective feedback, and write your business plan. [YEAR] Business Plan | Retail Store 27 / 27

Retail Store Business Plan

This Retail Store Business Plan can serve as a starting point for your new business, or as you grow an existing enterprise.

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10+ Retail Business Plan Examples [ Online, Cosmetics, Clothing ]

Retail Business Plan

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Number 1: Walmart

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