STARTING YOUR OWN RETAIL BUSINESS - (45% of Final Grade)

ro!e"# Ba"$%ro&nd
Over the course of the semester we will have studied various topics under the umbrella of retailing.
This project will require a practical application of many of these topics.
G&ideline'
1. The business must be a retail store that sells products to consumers and contains no
manufacturing or wholesaling aspects.
2. The business must be a storefront operation versus a non-storefront operation.
3. The business must supply products as its main focus not services! e.g.! dry cleaners!
beauty salon! car repairs! etc."

A""e(#a)le #*(e' of S#ore'+
- men#s clothing store - drugstore - hardware store
- ladies clothing store - toy store - jewellery store
- family clothing store - stationary store - china store
- shoe store - sporting goods store - florist
- gift store - children#s war store - computer store
- convenience store - boo$ store
- supermar$et - audio video store
Una""e(#a)le T*(e' of S#ore'+
- service retailer - carpet store - gas station
- furniture - lighting
- or any other store
with minimum
fi%turing
- appliance - franchise
&. The store must be at least '(( sq. ft. and include designated fi%tures to sell the products from.
'. The store type must be approved by your instructor by ))))))))))))))))))))))before
commencing wor$ on the project.
*. The business may be a sole proprietorship or a partnership of 2 or 3 partners i.e.! you
may wor$ on this project in pairs or a group of 3"
+. ,ll parts must be typed and submitted in either a duo tang! plastic folder! 3-ring binder or
bound by the print room. ,ll pages must be numbered. -ach project must include a. title page.
name of store! student#s full name! instructors name! due date! table of contents! introduction
headings and sub-headings! conclusion! recommendations! foot notes! bibliography appendices
if appropriate".

,i'"ellaneo&' Infor-a#ion
- /ate reports will not be accepted.
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- ,ll parts of your report must be typed. 0o written reports will be accepted.
- 1ou must hand in 2 copies2 one for the instructor to $eep! one to be returned to the student after
mar$ing! or you should resubmit your first reports with each subsequent report.
1our instructor needs a copy of each part of the report to $eep on file for the proper
evaluation of the following parts."
- ,lthough most location analysis data found will be common to all! and collaboration will ta$e
place!
each student or group should compose their own findings in the location report without
copying
verbatim other people#s wor$. ,ll websites must be footnoted.
- 3lagiarism includes handing in previous student#s wor$ as your own.
In#rod&"#ion
4escribe your stores concept and target mar$et.
5dentify the type of retail classification that your store fits into. i.e. what is this store all about".
6hat if any" competitive advantage does your store have7
8ow will this store be positioned in the mar$et place7 4raw a positioning map.
4escribe your store#s 3roduct 9i% in detail! i.e.!.
- variety - : of product lines identify each line and describe the width"
- assortment - : of items in each line identify all e%amples and describe the depth"
- support - level of inventory carried of each item :of units"
- brands carried - specify types of brands and specific brands to be carried
- quality levels
4iscuss general pricing strategies.
- one price policy fi%ed" or variable pricing bartering"
- price levels - low! medium! high in comparison to competition
- gross margins - research actual gross margin needed for this type of store ;tats <anada *3-
21("
4iscuss 3romotion ;trategies
- how frequently you will advertise
- what advertising appeals will you see
- what medias will you advertise in- be specific
- what will be the quality levels of your advertisements
<hoose a location for this store <ity and site".
The site should be the appropriate si=e. 5t may be currently vacant or! if occupied by another store
disregard that fact i.e.! assume it is up for sale or lease". This location should be an e%isting
building. 5t should not be an empty lot or a mall that is not built. 1our chosen site should not be
one of your competitor#s sites.
Yo&r 'i#e -&'# )e a((ro.ed )* #/e in'#r&"#or )efore 0or$ on #/e (ro!e"# "o--en"e'1
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Lo"a#ion Anal*'i'
1ou now must analy=e thoroughly the location chosen. 1ou start by analy=ing the suitability of the
city.
1ou should assume that you are a merchant from southern Ontario. 1ou are considering opening
up a store in southern Ontario and you need to evaluate a city to locate in. 1ou need to determine
the city#s appropriateness using the mar$et potential and retail operations approach as well as
assessing the trade area and specific site.
1ou must obtain statistical information for the analysis. 5t is not enough to just list the data and
numbers. 1ou must discuss! analy=e! and draw conclusions from the data. <onversion to
percentages is necessary to ma$e comparisons with different years! comparisons to alternative
city#s and the provincial statistics. 1ou should include all of the following headings in your report.

A1 ,ar$e# o#en#ial Anal*'i'
>The 3opulation - total number and changes
8andout" - number of family or household units and percentage changes
- age distribution
- education levels
- ethnic composition
- feature attractions of the city
- housing characteristics
- lifestyles categories
<omparisons must be made to another city of similar si=e in population as well as provincial
figures using percentages as well as numbers".
>5ncome - total city income and changes
8andout" - average per capita income
- average per family income! average per household income
- average wee$ly wage
- distribution of income ta%ation statistics"
- analysis of people wor$ing in occupation type
- current unemployment rate
- total retail sales
- per capita retail sales
<omparisons must be made to another city of similar si=e in population as well as provincial
figures using percentages as well as numbers".
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Na-e #/e e2a"# 'i#e in #/e in#rod&"#ion of #/i' 'e"#ion1 F&ll 'en#en"e' -&'# )e &'ed1
B1 Re#ail O(era#ion' Anal*'i'
>government ? legal requirements
- =oning and bylaws
- licenses
- sales ta% collection
- business registration
- employment guidelines
>ban$ing facilities
>competitive analysis
8andout" - identify direct competition and indirect competition
- evaluate strength of competitors
31 E.al&a#ion ,ea'&re-en# #ool'
> @35 A calculate ? compare your city results to ' others of similar population si=e
> ;,5 A calculate ? compare your city results to ' others of similar population si=e
> 5B5 A calculate ? compare your city results to ' others of similar population si=e
> 9B5 A calculate ? compare your city results to ' others of similar population si=e
> 5B; - inde% of retail saturation! calculate potential sales
> trade area! si=e and shape calculation Beilly#s or <onverse#s law"
> gross adequacy
> net adequacy
41 Si#e E.al&a#ion
> site classification type of site"
> interception ability! i.e.! traffic counts
> cumulative attraction
> compatibility
> discuss detailed accessibility of this site using all accessibility headings. ,lso draw map of area
0orth at top of map".
E1 5o0 0o&ld *o& o""&(* #/i' 'i#e
> rent! lease! buy
F1 3on"l&'ion
> outline if the city and site are recommended for location.
I-a%e Anal*'i'
1ou must now develop the image of your store.
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The first paragraph should state the desired image you want to portray. Cull sentences must be
used in this report. 5nclude pictures and graphics to illustrate your image
Dse the following headings to organi=e your report.
,. 8ow will you appeal to the consumers senses of .
include e%amples! e.g.! paint chips etc".
1. sight
2. sound
3. smell
&. touch
'. taste
@. 4escribe store#s e%terior include s$etches! samples! prototypes! pictures etc.". Eustify why
you chose
each component.
1. store visibility set bac$! angle! elevation"
2. store front materials
3. overhangs
&. type of store front
'. entrances
*. doors
+. store sign
F. store name - justify your selection
G. type of window and type of window bac$s.
1(. window display what will your initial store opening window display be li$e"
<. 4escribe the components of the store#s interior! include s$etches! drawings! sample
pictures etc.! and why you chose each.
1. flooring - type! colour
2. walls - type! colour
3. ceiling - type
&. lighting - type
'. store fi%tures - types"
*. equipment for sales support
+. mirrors and fitting rooms
F. interior signs number! type! format and sign holders"
G. house$eeping - criteria
1(. sales staff - qualities! number! wages
11. display types and merchandise presentation - types
12. layout - describe type of layout for selling areas and the type for non-selling areas
- draw proposed layout of sales floor and sales support areas
- discuss why you chose this layout and why you positioned merchandise where you did on
the floor plan. 6hat guidelines were used to position merchandise on the floor"
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4. 4iscuss your proposed store#s service mi%! i.e.! the services that are appropriate for your store.
5nclude a heading for each of the services listed below and then discuss how you are going
to offer the service. 5f the service does not apply to your store indicate why it isnHt.
- transaction methods
- delivery service- fee or free
- return policy
- full serve! self-serve! self-selection
- alterations
- repairs
- bagging and wrapping include a s$etch or prototype"
- complaint procedure
INSTRU3TIONS FOR LAYOUT
- you must use drafting paper IJellumI - available in the school boo$store
- the bac$ of the store must be at the top of the page. The front of the store should be at the
bottom
- the outside walls! windows and doors! cash areas! fitting room! stoc$ and wor$ room!
must be clearly drawn
- you must have a scale! e.g. 1I K 2I! ' cm K 1 m
- the layout must be drawn as if viewing the store from F feet above the ground loo$ing down
- all lines must be drawn straight
- all words and letters should face the same direction
- use rulers and compasses - 0O CB--8,04
- you must provide 2 $eys or legends
1. fi2#&re $ey
- it is necessary to inform anyone viewing the layout plan what all the shapes are
e.g.
O K chrome circular rac$
5 K waterfall rac$
1 K 3 arm rac$
2. -er"/andi'e $ey
- it is necessary to indicate what specific merchandise is located on each fi%ture.
- The store layout should be your own wor$ and not that of a commercial
draftsperson.
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RO6E3T BREA74OWN OF ,AR7S
1. @ac$ground 5nformation! product mi%! T.9 'L
2. /ocation ,nalysis 2 parts" 2'L
3. 5mage ,nalysis 1'L
The project must be handed in parts
9ar$s
@ac$ground information 4ue)))))))) 'L
/ocation ,nalysis
mar$et potential
analysis 4ue)))))))))
12L
retail operations analysis
evaluation tools! site
analysis
occupancy 4ue ))))))))
13L
5mage ,nalysis ,ppeal to ' senses
e%terior
interior
layout
;ervices 4ue))))))))) 1'L

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