How can i find out the average takings of a gift shop?!

[jodie jodie]

Hi there,
i think i was registered here in the past, but i lost my details!
I'm just wondering if anyone could tell me how i might find out the average yearly takings of a small gift shop here in the UK?
I have been thinking of starting a shop for a couple of years and may have found the right location in a popular tourist town.
Does anyone know roughly how much a small gifts shop (about 450 sq ft) on a busy high street might take per month or year?
Or where i could find out this information as I need to recheck this to make sure i would make my estimated target takings.
thank you for your help

 

[Newchodge]

A piece of string is about [ ]this long

 

[mhall]

Depends on a thousand things. Whatever you think it might be, divide by two for your figures!

 

[benb]

You may need to do some research; if you work out how many people are shopping in the high street you could try and figure out average order, then profit etc.

 

[Chris Ashdown]

Go to business for sale companies and they will show turnover rents rates etc

Its a hard market as notwhat you may like but what tourists want and often if nat always cheap rubbish over quality

 

[MOIC]

The fact that the OP needs to ask this question does not bode well for the success of their venture.

Surely, befor you commit to a lease you should be aware of the potential business in the area without the need to ask this type of ambigious question.

I would be curious to see the business plan and would advise some help from an accountant to fully understand what is involved.

Getting involved with a lease can have many serious legal obligations.

My advice is to seek professional help before embarking on the business.

Best of luck (You will probably need it)

 

[Deleted member 59730]

A good way of doing research is to ask potential trade suppliers. Some towns are much better than others and some streets are better than others. As a supplier to shops in the westcountry for 30 years I found that Newquay, Paignton and Bournemouth were black holes. Although the shops there appear to do good business they didn't for me. Lyme Regis, Glastonbury, Polperro were much better even though they are smaller towns.

 

[harper101]

A good way of doing research is to ask potential trade suppliers. Some towns are much better than others and some streets are better than others. As a supplier to shops in the westcountry for 30 years I found that Newquay, Paignton and Bournemouth were black holes. Although the shops there appear to do good business they didn't for me. Lyme Regis, Glastonbury, Polperro were much better even though they are smaller towns.

Just find this a helpful tip!
Agree with you, doing business really varies from town to town, and sometimes market response is different of what we thought!

 

[Twoscoops]

As Chris Ashdown says take a look at some businesses for sale. Present yourself as a serious buyer and an agent will book viewing appointments for you. From experience I can advise telling the agent that at a meeting you want to see turnover, GP and net profit figures for at least two years. While this is not unreasonable I have travelled a long way to see a business owner only to find that they haven't a clue what these figures are, so a wasted journey. You may in the process decide that buying a business is the best way forward, it is certainly worth considering over starting with an empty shop (which I have done twice).

 

[Gallows]

Find a currently operating shop in a similar situation to where you are thinking of. Sit outside with a pen and notepad, count the number of people walking by, count the number of those that actually walk in the shop, and count those that buy. Do this at different times of the day and week to give you an idea of actual sales quantity. Multiply that by the average price of the goods you may stock, and get an aproximate figure for £ per day/week/month/year. It will give you a starting point

 

[Vectis]

Find a currently operating shop in a similar situation to where you are thinking of. Sit outside with a pen and notepad, count the number of people walking by, count the number of those that actually walk in the shop, and count those that buy. Do this at different times of the day and week to give you an idea of actual sales quantity. Multiply that by the average price of the goods you may stock, and get an aproximate figure for £ per day/week/month/year. It will give you a starting point

And then half the figure you get, because, if the shop you're sitting outside counting customers is in the same town as where you are hoping to open your own shop (and it would be a bit pointless to do the exercise in a different town) then if you open a competing shop you'll likely split the trade between you. Just something to think about, rather than if shop XYZ is turning over £100k per annum then if I move in next door I'll get the same turnover too by selling similar goods.

Obviously you wouldn't move in right next door, but you get the drift. Err on the side of caution with your business plan and remember it's probably seasonal too.

 

[MIKE-1]

Even if you managed to come up with an average figure it might be misleading to use it for your shop as it depends on so many variables. Location, size, passing trade, quality of your advertising, shop front display etc

 

[jimmii]

As suggested above I would say go and sit outside a shop in a similar location and see what the footfall is like and how many people seem to be buying I own a small gift shop (about 1ksqft) and it really is impossible for anyone to give an accurate answer as its so dependent on stock, location, competitors etc it could vary from struggling to hit 100k to comfortably knocking out a million a year.