A PROJECT REPORT ON RETAIL BUSINESS PLAN ON

GENERAL STORE

HABIB-UR-REHMAN
ROLL NO 19
BBA 7th
2017-21

Supervised by: Dr. Ghulam Nabi

DEPARTMENT OF PUBLIC ADMINISTRATION

FACULTY OF MANAGEMENT SCIENCES
 UNIVERSITY OF KOTLI AZAD JAMMU AND KASHMIR
Executive Summary

The retail industry shows a constant positive demand especially for food and

related products. Compared to other business activities this kind of business has low

risks because of low required investments. New forms of cost cutting and store

optimization will help to set up a successful business. The return on this retail

business has a growth rate of about 3% to5% per year. A company that provides

additional service activities for the customers can be sure to have a high demand and a

strong competition advantage General Store is located in the Kurti Road, located near

University of Kotli. The operation of a General Store business that offers a range of

food and beverage products is the core of this start-up. A strong focus of this business

placed on the development of new and innovative strategies for the customers that

deliver a significant value. One central goal of the proposed business strategy is the

development of an own identity. Such identity created customer loyalty and help gain

a competitive advantage Therefore, Store is planned to provide new &interesting

services to the customer. The General Store concept, as shown in my plan, has an

excellent profitability level and growth rate. My competitive edge, along with new

retail techniques and technology, puts my store in the forefront of the retailing of

perishable and non-perishable consumer goods. We are living in an age where unique

grocery store environments are in great demand. The store will differ from the

traditional grocery store because of their added personal touch.

1. Objectives

i. Obtain necessary funding.

ii. Achieving Sales Turnover of Rs.40, 000 Per month in next year.

iii. Hiring 5 five new employees for the Store.

iv. Repay debt from original financing by the end of the next three years.

2. Mission

The most fundamental philosophy of The Ghosia General Store is the concern

for people. The Stores primary objective is to create a new and revolutionary

distribution outlet that will significantly reduce prices for its customers and provide

greater services with an equal level of quality.

2.1 Company Analysis

2.1.1 Company Summary

The Ghosia General Store is a premier regional grocery retailer based in Kotli

City. It is doing business more than 15 years and The Ghosia General Store do sales

more than 130 private label and national brand products to more than 90

independently owned products.

2.1.2 Company Ownership

The Ghosia General Store is a sole proprietorship. Currently it is owned and

operated by Mr. Habib-Ur-Rehman and His Father.

2.1.3 Location

The store has located at the ideal store location for the operation. The store is

located at the Kurti road near university of Kotli. The store is only selling the grocery

products. The Store is fulfilled all the customer need.

2.1.4 Hours of Operation

Store hours are 7 days a week from 08:00 A.M. until 09:00 P.M. Checks &all

the credit cards are accepting. A food stamp policy along with other policies will be in

place.

2.1.5 Start-up Summary

Start-up costs financed through a combination of owner investment, short-term

loans, and long-term borrowing. The start-up chart shows the distribution of

financing. 2.2 About the Store Products

The Ghosia General Store sold the same products as other convenience stores

in the same packaging sizes, quality, and quantity as other stores. This includes,

Spices, Soft drinks, Snacks, Tea, Coffee, Hair oil, Ghee, Oil, Cheese, Paneer,

Ketchup, Ready to cook Products. & Sugar, Pulses, Spices, Butter, Oil, Cheese,

Paneer, Ketchup, Ready to cook products, Moong flour (green), Moong flour (white)

and Corn flour.

2.3 Sales Forecast

The Ghosia General Store forecasted sales for years One & Two respectively

are Rs.48 00,000; Rs.60,00,000, This gives us an average 25% increase from year to

year. This may seem very high, but considering the level of initial sales and the

growth possibilities, management actually considers this to be achievable. These sales

figures are based on a current Sales Turn over and walk-by traffic with an average

purchase amount conforming to industry averages. Sales by Years of Ghosia General

store as
2.3 Personal Plan

The Ghosia General ' store operated virtually 12 hours a day 7 days a week.

Although the store’s opening hours will be officially 08:00 a.m. to 09:00 p.m.

Assumptions regarding personnel have been made for year 1 & year 2 as follows:

Ending of Financial Year –1

As a store owner Mr. Habib-Ur-Rehman got Salary of Rs.6, 00,000 per year.

An Accountant got the salary of Rs.1, 50,000. per year & the three sales persons will

get the annual salary of Rs.2,88,000 & store cleaner will get the salary of Rs.36,000

per year.

Ending of Financial Year -2

Salaries boosted by 10 percent. Additional staff will be hired if significant

increases in sales.

2.4 Break Even Analysis

The Ghosia General Stores assumed breakeven point is Rs.3,00,000 means,

when store have a 3,00,000 Rs Sales turnover. That time store have no profit no loss

situation. With the fixed cost of Rs .20, 000 &Variable cost of 25% per month. For

this kind of situation store will have average foot falls of 150 to 200 customers a day.

2.5 Conclusion

Over the last few years, retail has become one of the fastest growing sectors in

the AJ&K economy. The organized retail however is at a very nascent stage though
attempts are being made to increase its proportion to 15-25% bringing in a huge

opportunity for prospective players. The sector is the largest source of employment

after agriculture, and has started to penetration into rural AJ&K generating more than

10% of AJ&K’s GDP. Modern retailing has entered AJ&K in form of sprawling malls

and huge complexes offering shopping, entertainment, leisure to the consumer as the

retailers experiment with a variety of formats, from discount stores to supermarkets to

hypermarkets to specialty chains. However, Ghosia store still continue to score over

modern formats primarily due to the convenience factor. It is true that AJ&K is

moving towards to become developed state. Retail sector play a very crucial role in it.

With the help of the report we know about the retail sector in AJ&K & how to make a

business plan for a firm& what are the planning & Strategies required for making

their effective. It opens our horizon about business planning.

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