Advice for start up of baby retail store

[Kayleigh86]

Hi

I live in a small town that does not have anything for growing families. Our nearest large town is 15-20 minutes away. Our mother are shut down in 2020 so we are very limited we have a John Lewis and a Smyths toy store which have a small section for these items.
I want to look into this more with the idea of selling prams/pushchairs and nursery furniture but have the space for parents to come and view and push them around etc.
There is a family run business about 40-45 mins away that does something similar but as it’s not local it’s not something people go to.
My question is where is best to start in terms of making a plan. How do you look at getting in the stock etc would I need to go to baby events to start looking? Would just love to chat to anyone who has done something similar.

Thank you for reading

 

[finleydesign]

I've seen so many people fall in this trap, don't wish to pee on your fireworks, but the reason the baby type business constantly fails is no one uses them, if your mother care closed and you think your other competition is John Lewis and Smyths, who as you say have limited stocks, if you feel your business plan is more switched on than John Lewis, then you maybe in for a shock.

Locally It became a local joke on facebook where the only people who kept demanding baby shops were the towns 16 year olds, in fact a year ago someone actually listened and opened one, it closed 2 months ago.

I'd go back to the drawing board, you have to ask first, if there isn't something, theres always a very good reason, there isn't thousands of people wanting to buy baby things in shops just waiting around, with no one clever enough to think of opening a shop, retail is controlled by the consumer, the consumer has chosen they don't need a baby shop where you are, otherwise there would be one!!

 

[Mark T Jones]

I'd start by doing some detailed market research.

This type of shop has a very high failure rate with several potential reasons.

High on the list is simply lack of 'natural' demand (ie not enough babies)

But also, the propensity of indie shop owners to stock what they like, rather than getting a deeper understanding of what the customer actually wants.

 

[Paul Kelly ICHYB]

It is great that you have enthusiasm, but, sorry, I have to share the other posts views.

If a Mothercare has closed down, why?

Find out the demographics of your area i.e. how many children, how many families, how many women who could have children etc. This will help you build a picture of potential demand.
Have a look here for a big picture view.

What can you do that other high street stores don't do?

How can you compete with online pricing (important for those expensive items like pushchairs).

 

[IanSuth]

On a more positive note

A long while ago my aunt set up a "from home" business buying and selling old children's clothes as they are grown out of before they are worn out. She had a very simple pricing model so no haggling and it developed into a sort of party plan style business with 3 other mums working for/with her. She stopped when her youngest started secondary and she went back to her marketing career.She would have people come in give her a black bin bag of clothes, her say "that is £20 credit" they would pick out a load of replacements she would say "£40 less your credit £20 please" whilst they sat around drinking tea and eating biscuits. She would obviously clean clothes before reselling so that was a cost and storage was an issue but she expanded it into kids oys as well as those with small houses just cant keep it all.

Maybe you could look at doing something similar if you have a space but ALSO offering some new furniture/prams, the 2nd hand stuff would get people in the door and then they would see the higher margin stuff.

Just an idea but it would give you a low risk in if you have premises already

 

[Paul Kelly ICHYB]

That's a good idea.

ou could develop this further, as you build the base of users, and do dropshipping and affiliate sales....?

 

[Nick Holmes]

Brick and mortar are likely to fail without a unique in-store experience - I don't mean good customer service and a great layout. I'll give you an example: estate agents where I live now have bars inside them so potential homeowner buyers can relax with a drink. Perhaps, in your case, you make it a baby shop, but there's a coffee section and, next to it, a soft play area for babies.

 

[Mark T Jones]

Brick and mortar are likely to fail without a unique in-store experience - I don't mean good customer service and a great layout. I'll give you an example: estate agents where I live now have bars inside them so potential homeowner buyers can relax with a drink. Perhaps, in your case, you make it a baby shop, but there's a coffee section and, next to it, a soft play area for babies.

These are kind of brain storm ideas - the problem with indies is that they often grab an idea like this and run with it rather than thinking it through and asking key questions:

Will it attract paying customers?
Will it just turn me into a free creche?
Are there insurance implications?
Are thee licence implications?

Etc.

 

[fisicx]

My daughter has recently delivered a sprog. She hasn’t had to buy anything new. Everything has been donated, charity shops and eBay. As the baby grows the smaller clothes get passed on to the next new mum.

There is a whole local network of new parents on Facebook and nextdoor all swapping and sharing.

 

[DoolallyTap]

All the replies are great, although the most important topic has not been mentioned. How much cash have you got access to? Ask yourself, how much cash can you afford to loose?
Just write the business plan complete with the P/L forecast and see how much it looses in the first year, then think of something else.

 

[fantheflames]

Obviously the comments are not what you wanted to hear, but what you needed to hear. There is so much risk in going through with your business idea.

I think going back to the drawing board and consider your options.

 

[BubbaWY]

If you live in a small town, then is there going to be a big enough demand for what you are going to be selling to make it viable?

 

[DoolallyTap]

My daughter has recently delivered a sprog. She hasn’t had to buy anything new. Everything has been donated, charity shops and eBay. As the baby grows the smaller clothes get passed on to the next new mum.

There is a whole local network of new parents on Facebook and nextdoor all swapping and sharing.

Why a sprog, why not a beautiful new baby grandchild, I have 5 now and they are definitely not sprogs.

 

[Mr D]

Hi

I live in a small town that does not have anything for growing families. Our nearest large town is 15-20 minutes away. Our mother are shut down in 2020 so we are very limited we have a John Lewis and a Smyths toy store which have a small section for these items.
I want to look into this more with the idea of selling prams/pushchairs and nursery furniture but have the space for parents to come and view and push them around etc.
There is a family run business about 40-45 mins away that does something similar but as it’s not local it’s not something people go to.
My question is where is best to start in terms of making a plan. How do you look at getting in the stock etc would I need to go to baby events to start looking? Would just love to chat to anyone who has done something similar.

Thank you for reading

If you do decide to open a shop then stock wise you would need to get in touch with suppliers. There's various trade fairs around the country most of the year and probably trade press too.
However just because you buy something doesn't mean you are able to sell it.

A shop has rent, business rates, utilities, outfitting - maybe you also want to have some time off occasionally so that's staff too.
Going to open 6 days a week or 7?


Many times have seen people open shops because they see a need in the town. And the shop then shuts months later because there's not enough need to cover the bills.
Sure, some sales. Nothing like getting £1000 in sales and having £2000 in bills to pay out.

 

[LPB 123]

I think your demographic is mostly shopping online now (as I am your demographic) and also using Vinted / FB marketplace.
There is local pram centre nearby that has been there a long time but they have diversified into 3d/4d scans etc.

 

[MiekeClaerhout]

Hi Kayleigh,

​

I love your idea because it sounds like it's coming from your heart and not from your mind.
Despite all the above comments that I understand and partially agree with, I'd like to say that - for any kind of local business, the most important thing is the passion you feel for it.

If this is what you REALLY want to do, then you should do it but obviously with decent thinking and planning ahead. Passion will make you fight for your goal and continue to work to make it happen. Having the 'right reasons' or 'enough demand' are never the right reasons to set up a small business, and definitely not to maintain it.

Your new business can and will succeed but of course you need quite a bit of preparation and knowledge to maximise your chances. Besides the regular things such as a decent plan, some fundamental marketing materials and a clear idea how you will 'bridge' the first 2 years (that's usually the maximum period of time a new local business needs to start making profit) the most important things for this specific shop will be: uniqueness (to make sure that your future customers will come to you and you only), authenticity (to make sure that your future customers LOOOOOVE you and your shop and spread the word of mouth for you) and differentiation (to make sure you become their go-to for children's stuff and they're not interested to go somewhere else anymore).

I hope this inspires you a bit

If you'd like to get more inspiration, I make videos about this topic regularly. Just find me on youtube @MiekeClaerhout

Good luck!!

Mieke Claerhout Local Shop Guidance

 

[Mark T Jones]

Hi Kayleigh,

​

I love your idea because it sounds like it's coming from your heart and not from your mind.
Despite all the above comments that I understand and partially agree with, I'd like to say that - for any kind of local business, the most important thing is the passion you feel for it.

Funny you should say that - passion/passionate is in my top 5 'groan' words in a hospitality business plan (I know this isn't hospitality, but the same applies)

If you're interested, the other 4 are

Good cook
People person
Hard working

And the winner,by a country mile

Dream

 

[m4hmo]

Small independent shops are dying for a reason. Unless it's something like plumbing/electrical supplies or "pound shops". Better off doing a fried chicken shop even.

You won't be able to compete with online.

 

[Mr D]

Small independent shops are dying for a reason. Unless it's something like plumbing/electrical supplies or "pound shops". Better off doing a fried chicken shop even.

You won't be able to compete with online.

Or can sell online too.

Online can't compete as well with those who also have a B&M shop. Some suppliers won't deal with online only businesses.

 

[nikkim1982]

Hi

I live in a small town that does not have anything for growing families. Our nearest large town is 15-20 minutes away. Our mother are shut down in 2020 so we are very limited we have a John Lewis and a Smyths toy store which have a small section for these items.
I want to look into this more with the idea of selling prams/pushchairs and nursery furniture but have the space for parents to come and view and push them around etc.
There is a family run business about 40-45 mins away that does something similar but as it’s not local it’s not something people go to.
My question is where is best to start in terms of making a plan. How do you look at getting in the stock etc would I need to go to baby events to start looking? Would just love to chat to anyone who has done something similar.

Thank you for reading

hi, i am hoping to open a baby store too! I am looking to stock high end prams. Iv completed my business plan and seen a potential venue so am now looking at how you become a stockist for certain brands and obviously need to work out exactly how much money i need to start up. I’m wondering if there are any government backed grants but completely accept i may have to take a business loan. How far have you got with your idea? nik

 

[Paul Kelly ICHYB]

I’m wondering if there are any government backed grants

For stock, extremely unlikely!

 

[nikkim1982]

For stock, extremely unlikely!

no not for stock, for actual start up, as in shop fit etc

 

[Paul Kelly ICHYB]

You might get support for training & knowledge, but, again, extremely unlikely for shop fit.

 

[Mark T Jones]

hi, i am hoping to open a baby store too! I am looking to stock high end prams. Iv completed my business plan and seen a potential venue so am now looking at how you become a stockist for certain brands and obviously need to work out exactly how much money i need to start up. I’m wondering if there are any government backed grants but completely accept i may have to take a business loan. How far have you got with your idea? nik

There are any number of threads on here about grants - do a forum search.

Broadly; grants tend to be linked to specific causes & outcomes so unless you are (for example) in a regeneration area it's highly unlikely. In many cases time & effort spent looking for grants will be far better spent on the business itself.

You might qualify for a start up loan, and various other forms of funding might be available

 

[nikkim1982]

There are any number of threads on here about grants - do a forum search.

Broadly; grants tend to be linked to specific causes & outcomes so unless you are (for example) in a regeneration area it's highly unlikely. In many cases time & effort spent looking for grants will be far better spent on the business itself.

You might qualify for a start up loan, and various other forms of funding might be available

thank you for this ?

 

[DoolallyTap]

hi, i am hoping to open a baby store too! I am looking to stock high end prams. Iv completed my business plan and seen a potential venue so am now looking at how you become a stockist for certain brands and obviously need to work out exactly how much money i need to start up. I’m wondering if there are any government backed grants but completely accept i may have to take a business loan. How far have you got with your idea? nik

Deep, very deep pockets full of cash. fitout, stock and other costs how many 'high end prams do you need to sell to make it work.

 

[fisicx]

There used to be a pram shop near my parents. They were well known and very popular.

Then sales started to fall. Nothing they did halted the decline. It seems that parents would visit and test the prams then go home to ‘think about it’. What they really meant was go onto Amazon and get it cheaper online.

@nikkim1982 - unless you have very rich backers and a huge marketing budget and have the cash to buy in bulk you will struggle with the idea of a pram or anything else shop.

 

[kantanLiving]

Hi Kayleigh,

As others have said, to have an actual shop would incur high overheads. However, if you are determined, good on you and all the best on your venture.

I would like to throw some ideas at you incase you find them helpful.

For example, i wear an eyewear glasses brand called parasite, which practically have no presence in the UK, they have only one stockist since its so niche. I contacted the opticians but they didnt have any models i liked. But they said they could order the ones i like from the supplier/,manufacturer for £15 a pair. I was surprised the optician had that kind of service and so i am looking to order a few so i can try since it is not easy to get a hold of the glasses to try.

So the idea is, instead of you stocking a bunch of products which would cost you upfront. Maybe try to introduce a custom shopping service. when the customer comes to your shop, you may have 2 or 3 physical prams(could be ones you really want to advertise), then have an online catalogue to show them you can order a certain brand/type for them to try, they just need to pay p&p something like that. Obviously you would strike a deal with your supplier or manufacturer regarding how this would work.

Maybe offer a rental service for baby prams which later turn into your sale? so customers can try before they commit. Set a deadline, like lets say your margin is 40% on a pram. You tell customer ok you can rent it for £30 for a week. If you purchase within the week, get 5 or 10% off the pram purchase?

Fisicx has made a good point, which in todays world alot of customers just go to the shop to try the product and then go home to buy it cheaper elsewhere. So maybe consider an additional service.
For example John lewis are very clever to offer its customers 2 year warranty on there products instead of the standard 1 other retailers give. yes in some instances, JL will need to pay for the 2nd year warranty claimed by customers, but then you can weigh this. Does a pram fail in one year? , maybe you can give extended 1 year warranty and in your t&c's only cover actual manufacturer faults and not cover wear n tear. Example, i was upgrading my monitor, it was an LG brand, it was £10 or £20 cheaper on LG compared to another retailer i saw online, but i went for the more expensive retailer, why? because they offered an extra year of warranty. Now i know its unlikely my monitor will break down after 1 year or 2 year, got the retailer got my business purely for that extra just incase.

There are lots of baby shows that happen throughout the year. Just google baby event calender. Try mums net as well, usually full of useful info.