Table of Contents
- 1 What is the profit margin in a grocery store in India?
- 2 Why departmental stores are not popular in India?
- 3 Is grocery store a profitable business?
- 4 How much does it cost to rent a departmental store in India?
- 5 How to start a departmental store?
- 6 Should you invest in a franchise or start your own departmental store?
What is the profit margin in a grocery store in India?
Gross margins – the selling price of goods minus their cost – are lower in India than in developed markets. So food and grocery retailers typically have a 14 per cent gross margin in India, compared with around 17 per cent in developed markets.
Why departmental stores are not popular in India?
Departmental stores have not been popular in India. It cannot be opened in remote villages or small towns. They require huge capital and high managerial talents, which is lacking in India.
Is grocery store a profitable business?
Overall it’s all about economies of scale. The scale of operation makes grocery a profitable Business. The key to the success of some of biggest grocery chains is centralized procurement. Therefore, they can offer committed discounts to customers.
What are the disadvantages of departmental store?
The main demerits or disadvantages of departmental stores are as follows:
- Large investment of capital. Large amount of capital is required to operate departmental store.
- Limited number of customers.
- Lack of personal contact.
- High operational expenses.
- Unsuitable location.
- Difficulty in management.
What are the limitations of departmental store?
The limitations of departmental stores are as follows:
- Lack of personal attention: Large size of the store.
- High possibility of loss : Due to large-scale.
- High operating cost : Because of the various services offered by ttte store to its customers, the operating cost is high.
How much does it cost to rent a departmental store in India?
The rent for a place can be as small as Rs 10,000 to Rs 10 lac depending upon the city, location and size of the departmental store. The rent of a store shouldn’t be more than 4\% of sales on the safer side.
How to start a departmental store?
Having said that, here’s what should be considered while starting a successful departmental store: Location: As it always plays a crucial role in any business. Of course, getting the required licenses and permits is the first step.
Should you invest in a franchise or start your own departmental store?
If you plan to plant your own store from scratch: Self-started departmental stores are less expensive than buying a franchise. Investment is based on your budget and place you choose to sell. Design your store according to local tastes which leads to better relate-ability with your potential customers.
Is opening a grocery store in India a good business idea?
Starting up a small grocery store in India is a lucrative business idea as the population is increasing and the purchasing power of the average person is rising, so a grocery store is a good business option.