This publication contains a set of very practical tools to describe, analyze, and forecast a company’s sales, profitability and portfolio performance. They are accompanied by professionally designed charts to help communicate the outcomes and can…
All About the Retail Industry
Retail, as we know, is the process of selling goods or services through multiple channels of distribution to earn a profit. If there’s a demand, the retail industry will satisfy the needs by providing supplies. The term itself signifies as a service to provide small orders out of a large number of consumers or end-users. Retail either gets their supply by connecting with a wholesale distributor or directly from the manufacturers.
Retailing has been a long-standing way of selling products or services, even dating back to what we used to call peddlers. Due to advancement in civilization, retail shops transformed from little booths into big shops or malls. Competition in the retail industry is also plentiful, thus, retailers make up various strategies such as types of stores, target market, product assortment, customer or support services, the location of the store, etc.
Now that we are in the digital era, the retail industry didn’t hesitate to jump in the fray to this platform of an untapped market, ready for the taking. Branching out into broader markets by selling through multiple channels from brick and mortar to online retailing. Consumers are also adapting to the digitization of retailing, thus, there is a rise in needs to pay through online channels, services for delivery, advisory, stylist, etc.
Types of Retail Businesses
As simple as it sounds, a retail business sells finished goods to the end-users or consumers in exchange for money. The business comes in many forms such as stores, kiosks, sometimes even by mail, and the latest way, through the internet. Also, service-related businesses such as beauty salons, rentals can also be considered as retail businesses.
You might be wondering what types of businesses are considered as retail. So, we listed the following as to categorized the retail businesses in a retail industry.
- Grocery Stores – These are stores that sell various kinds of food and non-food products such as produce, meat, health and beauty products, cleaning products, etc. The size of the store varies according to the location and the size of the demand.
- General Merchandise Stores – These are stores which include department stores, mass merchandisers, retail outlets, that sell merchandise at a discount. The store sells various merchandise such as clothing, sporting goods, toys, bags, auto parts, etc.
- Specialty Stores – These are stores that sell larger volumes of specialty products such as bookstores, motorcycle parts, sporting goods, public medicines, coffee, office and school supplies, pet products, etc. The size of the stores is usually smaller than the usual retail stores since they spend more expenses and have a limited or specific target market, but they also resolved this via marking up the prices of their products.
- Non-Store Retailers – In this kind of retailing, they don’t have the usual brick and mortar store, instead, everything is handled either by mail or online retailing. Nowadays, online retailing has become a trend which somehow threatens the existence of the usual on-site retail stores. Also, most of their budget is invested in marketing to attract more customers.
- Restaurants – Eating outside has become a habit for people whether in certain occasions or simply because of having no time to prepare food for themselves, thus, restaurants, fast food chains, and other dining establishments, became essential in the economy. This is also considered as retailing, not just for selling food, but also services to the consumers.
- Specific Service Shops – These are shops that sell specific services such as beauty salons, dry cleaning, car wash, etc.
Nowadays, it is almost impossible to not spot a retail business. This only proves, that no matter what era it is, retailing will always stay as one of the biggest and fast growing industries that existed.
Starting a Retail Business in The Retailing Industry
Businesses that are selling goods or providing services to consumers, all fall under the scope of retailing. Retail business is all about showcasing the products, describing the features and benefits of products, stocking products, processing payments and doing everything it takes to get the right products with the right price to the right customers at the right time. Usually, the retail business is dominated by small family-run or regionally targeted stores, but nowadays, huge companies are taking over the Retail Industry, which is even more capable compared to smaller companies, raising the competition a notch higher.
Retailing stands as a final link in the supply chain in between the manufacturers and consumers. This, in turn, gives it a solid position that’s critical to satisfying the demands of the market. So, even though the competition is tough and there are many factors that changed the traditional way of retailing, those factors also brought about a huge opening to gain and gather more target market.
The potential of going global is not out of reach which encourages businessmen or entrepreneurs to jump in and start their own retail business. Thus, helping the Retail Industry grow even more and becoming one of the best Industries that are easy to start a business in. But when there’s a big opportunity like this, there will be more additional numbers of interested parties, flocking to start a retail business. The competition will be even more rough, not just towards the new startups but also against the old timers in the retail industry.
Retail Business Financial Planning
How will you make sure to survive in this industry? How to ensure that your business will last longer and will be financially feasible for the next coming years? Or will your business be able to give you a good number of profit ratio? Retail Business Financial Planning is the answer.
If you are an entrepreneur or a startup businessman planning to start a retail business, you need to prepare an effective business plan or a financial model to visualize your goals and standing of your business in the near future. Forecasting the circumstances or events that will either affect your business positively or negatively, managing the cash flow and overall management of your business.
Retail business financial planning is critical to surviving against the heavy competition in the Retailing Industry. This also applies to other businesses in different Industries. So, strategizing to prepare ahead of time is the best way to go.
Downloading Financial model Templates for Retail Business
Business planning and financial planning go hand in hand but creating them from scratch would be inefficient and too time-consuming. So, to help you in your dilemma, here we have a list of financial model templates in Excel above, which you can easily download. Specifically designed financial model templates for retail business, which are ready-made for application and easy to edit with instructions for you to follow.
These Excel templates will be your basis to create your Retail business financial planning. Helping you determine your business’s financial feasibility for the coming years, also to keep track of your business’s cash flow and other projections you need for planning.
If you are looking for a specific financial model template and couldn't find it in our inventory, feel free to comment here: Missing Financial Model Templates, so that our Vendors will pick up that project and will soon add in our still growing inventory.
If you found the template but need help with customization of your preference, we also offer financial modeling services which you can avail here: Custom Financial Modeling Service.
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