New Shop?

[promdressers]

My wife and I are looking to open a new retail shop (B&M) retailing prom dresses, evening wear and mother of the bride, plus accessories. We aim to avoid stocking budget gear, and aim a bit higher. The nearest B&M completion is at least 10 miles in any direction, and we have found a 2000 sq ft unit with big windows and on a main traffic route through the town centre.

I can't be more specific, as we don't want to give the competition or the estate agent a heads up!

We know that "times are hard", and, inevitably, we ask ourselves if we are kidding ourselves. This will be a venture demanding a £30K - £40K outlay, as we want it to be a special place to try and buy.

Are there any established retailers able to let us know how depressed or otherwise this market is? Has the internet taken all the profit out of this particular business?

Thanks in anticipation

 

[Fatheadzuk]

im not an established retailer but i use the internet for all my clothes shopping it takes all the hassle out

 

[Leather Briefcase Company]

There's a reason why one in six shops are empty on the average High Street.
Is it in an affluent area?
Are the surrounding shops busy and viable?
Is there easy parking nearby for your clients who may want to stay an hour or more?
With a niche product do you need to be in a highly visible location - could be much cheaper on a side street - people will find you if you have exclusive merchandise.
Have you talked to suppliers - they can tell you who is doing well and what is selling.
Look at your competition. Watch how many visits they get on a busy day.
There's nothing worse than being in an empty shop all day, and the only visitor is the postman with the bills.

 

[promdressers]

im not an established retailer but i use the internet for all my clothes shopping it takes all the hassle out

Thanks,

I get that buying IN is easy. (Ignoring ordering 3 sizes and returning to the PO), for day to day clothes, I know that the IN has massively upset B&M wedding dress retailers.

Do you buy "special" dresses from the web, or just day to day?

 

[David1962]

You say it's a "venture demanding £30k - £40k".

Before you go any further you need to work out how much you are committing in funds until you reach a break in the lease.

For example if the break is in three years you need to work out how much this is costing in:-

Rent
Rates
Insurance
Utilities
Personal living expenses

Then you have the true cost of the business, which I'll wager is far more than £40k.

 

[The Byre]

Some random thoughts -

1. That figure seems unbelievably low! As David states, you don't seem to have factored in all your costs.

2. In today's World, you are up against the on-line boys who buy directly from the Far East in bulk and sell fairly good stuff at low prices and without the burden of a High Street location.

3. You are also up against Far Eastern manufacturers who sell directly to the punter and will even do made to measure.

4. The High Street is dying.

5. I buy almost everything on-line, except food (and many, many people buy that on-line today as well). In the past year I have bought clothing, scaffolding, a tractor and even a digger. I can't imagine wanting to pay High Street prices!

As I said, just random thoughts!

 

[businessfunding]

I'm not a retailer, nor am I in the fashion trade


I do know, however that (according to which stats you read) 17% of retail is done online - which leaves 83% that isn't - quite a large market.

It may or may not be true that 1 in 6 shops are empty, but it certainly isn't the case near me (in any of my local towns)

So really it boils down to demographics and target markets. Are you hoping to rely on passing trade or do you have draw to your shop? What other facilities are nearby? Do you have a database of potential clients etc etc..

 

[Paul Norman]

There is still an offline market. Although I sell a LOT online, I would not want to be without my offline sales!

Your business idea is fairly specialised. Often, that is a good thing. Very good specialised, and compact, stores, seem to be able to make a go of it.

You will already know this, but there are two things you must do.

1. You must find the right location. The right town, the right street, the right passing trade, the right neighbours etc.
2. Write a business plan. Be honest. Test the numbers

In theory, your idea is fine.

 

[warnie]

Some random thoughts -

1. That figure seems unbelievably low! As David states, you don't seem to have factored in all your costs.

True and many don't, it only hits them after a year of things not going well and they realise they're tied to another 4 years of losing money.

2. In today's World, you are up against the on-line boys who buy directly from the Far East in bulk and sell fairly good stuff at low prices and without the burden of a High Street location.

Surely these kind of high end dresses need to be made to measure or at least altered to suit? you can't do that online. Also that burden of a high street location is not a burden at all on the right high street.

3. You are also up against Far Eastern manufacturers who sell directly to the punter and will even do made to measure.

If my wife was spending big bucks on a dress there's no way I'd be letting her measure herself. I would leave that to the experts, also what happens when you get the dress mail order and it still doesn't fit right? yes you've saved a bit but are left with something that doesn't fit correctly and can't do sod all about it!.

4. The High Street is dying.

Some are dying, but please give the OP a little more credit then assuming he would be renting a shop in a deserted high street.

5. I buy almost everything on-line, except food (and many, many people buy that on-line today as well). In the past year I have bought clothing, scaffolding, a tractor and even a digger. I can't imagine wanting to pay High Street prices!

You do, but far more people still don't. It's also a myth that everything online is cheaper. Not anymore especially with the cost of goggle addwords and the government clamping down on rogue traders who sell for next to sod all and pay no tax to gain a footing in the market.

As I said, just random thoughts!

Mine too! don't shoot me!

 

[promdressers]

You say it's a "venture demanding £30k - £40k".

Before you go any further you need to work out how much you are committing in funds until you reach a break in the lease.

For example if the break is in three years you need to work out how much this is costing in:-

Rent
Rates
Insurance
Utilities
Personal living expenses

Then you have the true cost of the business, which I'll wager is far more than £40k.

Without question, you would win your wager, on your definition of "outlay". £40K will cover initial stock, and, in this particular unit, additional shop fitting. Our pal is to start with Ptom & evening, and develop in to MOBride as funds permit.

After visiting Moda at Birmingham NEC, it appeared that margins are healthy. We ran a successful retail / service operation for over 15 years, but margins were massively eradicated by the Internet sellers. Declining profits, and increasingly time wasting "potential clients", due to the nature of our business, made our decision too close when confronted with a health scare a reasonably easy decision.

For this reason, I was keen to understand how effectively territories were established. suppliers were unable to talk to us as they had outlets within 15 miles.

I was hoping that there may be some similar retailers willing to share some hard earned insights.