supermarket feasibility study

supermarket feasibility study

supermarket feasibility study
supermarket feasibility study

The supermarket project is one of the best profitable projects as it depends on the sale of consumer goods that are indispensable to people, which are not greatly affected by high prices or market competition because the goods are sold at the same price and are available in every supermarket, so it is natural to sell to those near you And he sells the other to those who are next to him. But this does not mean that the feasibility study of a supermarket is not important because it is a profitable project and the possibility of losing it is low.

supermarket feasibility study :

1. Project description

A supermarket is a business in the retail sector that aims to display and sell canned foods, cereals, oils, beverages, and household items such as soap, washing powder, sanitary paper and the like. Fresh vegetables and fruits, meat, dairy and cheese, bread and sweets, canned goods. Plastic tools … and other consumable tools.

Legal form of the project: supermarket
Required licenses: Municipal license Ministry of Municipality + Chamber of Commerce membership
2. Choose a name for the supermarket

The name of the project is one of the influencing factors, so the name of the project must be chosen carefully. (A distinctive trade name: 7 things to consider to get a name that attracts attention)

3. Choose a suitable location

To choose the most suitable project site, you should take into account:

Website clarity and accessibility
Start in high traffic areas
Avoid starting where competitors are.
Location strategy: Unlike small groceries that do not require when choosing a location except that they be in a residential area, and that there are no competitors in the immediate vicinity, choosing the location of the supermarket is more complicated and requires balancing two contradictory aspects:

First: It should be in a spacious place that can provide the necessary space for the car parks you go to.

Second: To facilitate the access of shoppers to it to ensure returns that exceed the operating cost. Therefore, the vicinity of vital roads within cities or at their outskirts seems to be the location that most supermarkets choose to establish their branches. In addition to the site's ability to attract shoppers, it also plays an important role in the internal planning of the supermarket itself, down to the type of goods it offers.

It also takes into account when choosing the location of the supermarket, the income level of the area's population, population density, and the area's growth trend.

3. Market analysis

Competition: Although competition is great within the retail sector, the actual competition within this type of project depends on the actual location of the supermarket in terms of the number of competitors and their proximity to the project.

The volume of demand: With an analytical look at the reality of the retail market for consumer goods in the project area, we find that it can absorb more of those wishing to enter the market, and this is evident from the reality of the following justifications:

Existence of investment opportunities in the proposed project area, as it is an area with high purchasing power and a large consumption pattern.
High population growth rate and consequently high demand for food commodities and consumer items in the foreseeable future.
Customer segment: The project targets a large segment of society within the project area, which may be individuals and families of citizens and expatriates within the project area.

4. Determine the capital and cost of the supermarket

The capital of the supermarket is the main factor for its success, and it is what it depends on in preparing the project.

Establishment cost: It includes administrative establishment fees such as a municipal license, and commercial registration fees.

Fixed cost: which is paid only once at the beginning of the project, such as: the cost of shop equipment from income and abroad, the purchase of equipment and paint, lighting, shelves for products, the purchase of air conditioning for the place, the purchase of various goods and products at the beginning of the project .

Variable cost: It is the expenses that are deducted monthly, and it varies according to the location of the supermarket and its size (labor salaries, rent of the place, bills for water, electricity, gas .. and also the costs of advertisements in magazines and on social media..)

Taxes: Usually the costs of taxes on small and medium enterprises are simple, but in the case of a large supermarket and in a special place, it will calculate estimated taxes based on the sales estimate from the tax administration.