Gift & Homeware shop Advise

[samkma]

I am looking into opening a gift/homeware shop in a town that is a main tourist place. The shop available is with a retail A1 use. Rent is £21 K/annum for 620 Sq ft. floor space with storage to the rear w/access offices on first floor. The town has a 4m visitors each year and has 89% occupancy rate on total shops available.

The town has a population of 20K only as all buildings are hotels and B&B's.

I have worked in the retail for about 15 years & I am currently an online seller - Amazon and Ebay with my own website and have been doing this full time for last 7 years, there are 3 other similar shops in the town, one being TheGiftCompany.

What is your advise? thoughts? tips? I like to hear from you on both sides of the coin.

 

[Jeff FV]

We supply the gift shop trade.

5 or 6 years ago, we had circa 400+ indepent gift shops that we supplied, now it is a handful.

Part of that reduction is because we've changed our business model (now back to where we started - selling direct to the public through various online channels), but a significant part of that reduction is because many, many of them have closed.

Not saying it won't work, but it's a tough gig now.

 

[samkma]

Thanks for the input Jeff, I am bit confused as I had been to the Spring Fair at NEC 2 weeks ago and both days I was there, Gift and home was the kost crowded area and few pwholesalesrs I spoke to said 90% of the orders they took were from indpendent retailers.

 

[mhall]

Thereare still loads of us independent gift Retailers around. It is hard and finding suppliers who don't rip you off or go into competition with you by selling on line takes up most of my day. We have dumped dozens of suppliers in the last few years. Some would sell to anyone, even our neighbours. Two opened up Christmas Pop Up shops just down the road from us but most of the ones we dumped opened up a web site and sold stuff cheaper- using us as a window for their products. There are suppliers you can trust who will work with you but it takes ages to find them and build up the trust. Be honest with them up front and as soon as you smell a lie - walk away.

 

[samkma]

mhall... Thanks for the response.

I am currently trading as a sole trader with no VAT, I want to go down the company route (LTD) and also register for VAT.

Then how do I move my current stock to the company?

Really sorry for the number of typos in my last message! I am just ashamed that I posted one like that.

 

[Scalloway]

Then how do I move my current stock to the company?

I would make up an invoice from the sole trader business for the value of the stock. It would be a sale in your self assessment.

The stock would be a purchase in the books of the ltd company. The other side of the entry would be Director's Loan Account (DLA). The company could then pay you when it had money to do so.

 

[Mr D]

Having a physical shop will open you up to more suppliers that will not supply online only sellers.
Whether your shop can do well enough to be cost effective....
Four of the shops selling gifts in my local town are relatively close together - two on the same street as each other, two in the same 7 unit shopping centre next street over. All have been going years so to me it looks possible for a town to support multiple gift shops.
Sadly have to agree with mhall about suppliers. We have dropped over a dozen for messing us about.

 

[samkma]

Thanks guys, I have been using the Spring Fair catalouge to find some suppliers to start.

 

[Mr D]

Gift Focus and Gifts Today magazines can be useful for suppliers too. And Giftware Association can be good.

 

[samkma]

Thanks Mr D - How much does it cost to be a member of Giftware?

 

[Mr D]

Off top of my head so much a month. 20 something? Been a little while for me.
Have a look at their site and see if it's worth it for you. They are pretty good to talk to as well.

 

[mrjonathanbrown]

we are a supplier in the gift trade if you would like to contact us.