Tips for Small Retailers in 2022

If you are planning to launch a coffee shop or have your own clothing brand, you are moving into a very competitive arena; retail was hit hard by the pandemic and has an ongoing war with e-commerce. Online shopping didn’t destroy the retail sector, but it did result in radical changes; electrical products vanished, as did sporting equipment and businesses that do well are coffee shops, restaurants, spas and novelty stores, which always seem to survive!

Here are a few tips to help you navigate the tough world of retail.

• Crunch the numbers – Simply put, you need to know how much money you have to take in a day to break even, you could even break that down to the hour. Make sure to include absolutely all your outgoings and ask yourself, ‘is this figure achievable?’. Retail space is never going to be cheap, then you have staff costs, security, maintenance and let’s not forget the utilities; all in all, it adds up to a chunk of money and before invest a single dollar, you should know your break-even point and have a plan on how to reach your target. Retail requires a big investment and your business plan should reflect the extensive market research that you have done, while clearly showing how you plan to market the business.
• Insurance – You can find cheap retail insurance online from a leading US insurance company, which you will need when you lease your retail space; they can tailor the policy to suit your needs and you get instant cover and a certificate of insurance issued. Once on the insurer’s website, click on ‘get quote’ and within a few minutes, you have a premium cost.
• Social media – The power of social media cannot be ignored and a small retailer should have a Facebook page, a Twitter and Instagram presence, announcing specials and live events. Introduce ‘bring a friend’ promotions and offer seasonal discounts to regular customers; if you aren’t IT savvy, talk to a local digital marketing agency and they can handle all your social media accounts, which generates a large following and that means more people in your store. In fact, a survey by Lightspeed found that 40% of small retail businesses who did not maintain an online presence during the 2020 holiday season didn’t see any increase in sales. Here are a few investments you might not have considered.
• Signage & display – This is a critical aspect of drawing in passing shoppers and it can be broken down to interior and exterior. As for exterior, you want to catch the shopper’s eye; neon is great and a local signage company can create something unique that reflects what you are about, while in-store ambience keeps people in your space. There are lots of free online resources about retail store layout and design that can help you fit the store in an effective way; use a professional shopfitting outfit and you can be sure of a stunning job. Calls to action should be in all the right places and the signage should blend with the décor and be readable from all store locations.

Once you have registered your business and your business plan is complete, you can get to work and before you know it, that big launch day will be here!