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Retail Business Plan

Retail Business Plan

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Published by Arihant
Praxis Business School, Batch 2007-09
Praxis Business School, Batch 2007-09

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Published by: Arihant on Nov 21, 2009
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04/17/2013

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The group conducted a primary research on the local kirana stores with respect
to their financials. The assumptions for the model store EBITDA are based on the
research findings.

The sample size was of 20 kirana stores of size of approximately 200-250 sq. ft.
The research frame was around the areas of Bowbazar, Sealdah, Kalighat,
Bhawanipore and Kasba. The logic for choosing these localities was that all of
them are proper residential areas where the population is mostly SEC B and C.
The research findings are given below:

i)

The monthly turnover is around Rs. 4, 00, 000.

ii)

The Gross Margin on sales is approximately 10-15%.

iii)

Pilferage is about 1% of sales.

iv)

Operational expenses vary according to the floor space. For a 250 sq. ft.
store it is approximately to the tune of Rs. 25, 000 -.

v)

There is high level of customization according to the location and
consumers’ tastes and preferences.

vi)

The catchment area of a store is about 1-1.5 kilometers.

vii)

Most of the stores are owned property.

viii)The average bill value of a SEC B customer is about Rs. 4000- Rs 5000 per
month.

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