| You've got style. But do you have what it takes to run a clothing store? |
The decision to open a clothing store requires more than an ability to keep up with the latest trends. If you think you can get by in this business with only a great sense of fashion and no idea of how the industry operates, think again. Apparel merchandising is partly about the love, but, like any business, it's also about the ability to earn money and keep your doors open.
Comparatively, opening a clothing store will not reap the benefits of some other business ventures. It's a lot of work – mostly 12-14 hour days – and a risky venture to boot. If you plan on leaving your cushy corporate job with its steady income, make sure you have all your ducks in a row. Nevertheless, if you have a passion for clothes and skill in merchandising, there's always room for a store that has carved out its own niche.
For the most part, you won't want to go to battle with the large retailers. It's best to find out where their offerings fall short. Maybe you'll specialize in particular line of sportswear or jewelry or trendy plus-sized fashions. Maybe you'll offer special services like on-site tailoring. Whatever you decide, you'll want to become the expert on your corner of the market. Focus on setting yourself apart with your products, hours of operation and service.
You want your customers to feel special. Retail chains can sometimes be pressured into stocking a narrow supply of merchandise and have an inadequate amount of salespeople working the floor. Here is where you fit in. Aside from providing a more interesting selection, you have the capacity to give your customers the service they need. How many times have you been in a department store waiting in vain for a key to the dressing room, a different size, or an honest opinion?
The Market
If your angle is women's apparel, you will definitely want to start by identifying the market gap. Women have diverse tastes and can be picky about their apparel purchases. Pay attention to what they are wearing on the streets. The central question will be, “What do I have that will bring women into my store?” The answer will be based on your location and the merchandise you can provide that can't be found anywhere else.
There are some staples in children's apparel that may never go out of style. The matching outfits, light blues, pinks and greens are still favorites. Keep in mind that parents who shop at boutiques and independent vendors for their children's clothing may be the type that drive luxury cars and send their kids to private schools. So, again, choose an appropriate location and stock your shelves accordingly.
Men aren't so fickle about their choices, they just don't like coming to the store period. However, market research shows that when they do shop, they prefer to shop for casual clothes rather than slacks and blazers. Most men who shop are in the age range of 18-40 and single with some money in their pockets. A smaller percentage of male shoppers are in their 50's.
Location
As in most industries, your location can mean the difference between a failed business venture and a successful one. It's important that you post up in a place that has a large enough population to support your business. Make sure your target market is consistent with the area demographic. Also, the local economy should be stable enough that customers feel unhindered in spending their disposable income at your establishment.
It is essential to know that most all apparel store landlords charge by the square-foot. On top of monthly rent, some require a percentage of the sales as well. If you decide to locate in a shopping mall you may be charged an add-on fee for upkeep of communal space and advertising. These fees are typically charged by square footage also. You want to budget for rent between 5 and 6 percent of your total sales. Some owners advise having $250,000 as start up capital for a 1200 - 1500 square-foot store.
When choosing a location, you'll want to look at several different sites to make sure you're getting the most for your money and that your selection fits your needs. Consider the price, size, parking, potential for growth, customer traffic, zoning regulations and city ordinances. Try to identify why consumers will prefer to come to your space rather than going to competitors.
You'll want to stay open at least six days a week. Most independent stores conform to mall hours, 10a.m to 6p.m. or 11 a.m. to 7 p.m., but you may want to close later for the convenience of late shoppers. Flexible hours for your patrons could be an advantage.
Open For Business
As the owner of a clothing store you will make countless decisions and wear many different hats each day. You may be interfacing with customers, reviewing the books, managing employees, consulting with advertisers or addressing technical problems. The only guarantee is that there will never be a dull moment. To make these decisions easier it is best to establish standard operating procedures to make your day more predictable. These rules might refer to the obvious matters such as pricing, returns, layaway, credit or cash transactions, damaged merchandise, special orders, or child supervision in the store. Or they might refer to less frequent concerns such as, gift registry, gift wrapping, purchasing unsolicited products and consignment.
So who will you find to help with all this? Usually an independent clothing store can be operated by one or two people. Industry experts suggest one full-time and one part-time employee for every 1500 square-feet. When choosing employees, personality is key. You want outgoing people who are honest and mature to help you handle the cash and move the merchandise. Your sales associates will need a sense of diplomacy, persuasiveness and humor to meet arbitrary customer demands.
On a final note, few businesses survive to tell their tale without advertising. To launch your clothing store, you must establish an image. Consider your unique angle and market yourself accordingly. If you are chic, trendy or casual, identify these traits that align with your consumer base. Inform your customers about the merchandise you carry, special events, services and sales, but keep it simple. Whether through mail of other media, grab attention and distinguish your store from all the rest.
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