Retail businesses can be simply classified as those which sell an item direct to the public. There is a lot of competition in the retail sector including a small number of mega retailers like Target and Big W, the ever growing number of nation wide franchises, and the large number of mum and dad owned smaller stores.
Making money in retail can be very difficult. Should you complete in the high volume, low margin area against major players like the Warehouse? Or are you better off to position yourself in a niche limited market with high margins but low turnover? Other questions retailers often have to address include;
- Have I clearly defined my target market
- Is my business projecting the right image for my target market
- Does my store layout help in selling my highest profit products
- Do my staff need sales training to on sell and up sell to customers
- How much do I need to increase my sales when I have a sale to make more money
- Have I cash tied up in slow moving stock which could be put to better use.
Kennas can assist you answer these questions through our industry expertise and referrals to retail business consultants. Remember, the more educated you are and the more you use professional help, the more your profits will grow.
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