Small and medium-sized retail businesses have an average monthly revenue of around $22,341. Shoppers spend about 69% of their discretionary income in a retail store each month.
If your business has beaten the odds to be a part of the 80% of small businesses to survive past the first year, congratulations! All of your hard work has turned into a profitable business.
Now’s the time to start thinking about how you’ll capitalize on your growing success. If you don’t make a move now, the growth will stagnate and you’ll lose momentum.
So, what do you do? You need a retail expansion strategy.
Growing your retail business may seem daunting, but don’t let it scare you into inaction. With a little careful planning, you can create a winning retail strategy that’ll help you achieve and exceed all your goals!
Retail Expansion Strategy
Every business, no matter how small or big it is, needs a plan. Strategy in retail is vital to the expansion of the business.
With the right market expansion strategy, you can:
- Increase sales
- Add store locations
- Expand your business into other markets
- Grow the size of your business
- Afford more labor
You can build up your company by developing a strategy and following it. Some steps might give you an immediate ROI (return on investment), while others may require long-term commitment before you start to notice any gains.
How to Grow Your Retail Business
Owning and running a business is the dream of many a person. If you’ve already taken the first steps toward that dream and want to ensure it thrives, you need to invest in a retail expansion strategy.
This guide will provide several tips on how to develop a marketing strategy that works for your business.
1. Promote Your Current Products
If you want to sell more of your existing products, you need to help give customers excuses to spend their money. Promotions and loyalty programs are a great way to convince a person to make a purchase before they miss out. Repeat customers who are loyal to your brand are worth ten new customers who buy only once.
2. Focus On Atmosphere
Customers enjoy shopping in brick-and-mortar buildings for the experience. The more full of unique personality a store is, the more likely customers will drop in out of curiosity.
Determine an event or theme that fits your business niche. For example, if you’re a retail store that sells infant and children’s clothing, hold a special children’s event like a picture book reading. Or maybe install a play area in the corner of your store for children to play with while busy moms shop.
3. Expand Your Audience
If you’re wanting to increase your revenue growth, then one tactic is to branch your business out into other products. If you’re an infant and children’s clothing store, maybe add toys, infant food, or infant bath supplies. Busy moms will appreciate having a one-stop-shop for their child.
This type of expansion move can be costly. Purchasing new products that expand your market requires capital. If you need help with funding, look into various options like a term loan.
4. Open an Online Store
If you haven’t yet started an eCommerce site for your business, do so at once. About 51% of Americans prefer to do their shopping online. Not only that, but 82% of smartphone users research a product online before making an in-store purchase.
If your business doesn’t have an online presence, much less an eCommerce section for customers to purchase from, you’re losing out on a huge percentage of your potential customer base. Where you’re losing, your competitors are benefiting.
5. Online Security
This tip ties into the previous one. If you open up an eCommerce site, it had better promise a safe online transaction. The last thing any customer wants to worry about is whether their credit card information will get phished from your site.
Your eCommerce site will need to meet the data security standards set forth by PCI Compliance. A part of this means you’ll want to get your site SSL certified. Customers will feel safer seeing the padlock symbol in the web address bar so that they know their credit information is secure when entered.
6. Dive Into New Sales Channels
If you aren’t yet on social media or investing in any type of content marketing, now’s the time.
Content marketing is cheaper than traditional marketing and will generate 3 times as many leads. A percentage of those new leads will then convert into paying customers if your sales funnel is optimized.
If you haven’t been working on building your brand image, explore using Instagram, Facebook, or Twitter. It’s a free way to market your products, build up your brand, and grow a loyal customer base.
People don’t respond to hard pitches like they used to. Now, customers are motivated by personalized ads that they can relate to. If people connect with a story or find your content useful, the next step they’ll take is to look for ways to support your business.
7. Attend or Hold Events
Take part in your local community and attend local events. See if you can set up a pop-up vending stand at the event to sell your products. On International Small Business Day, many cities and towns hold sidewalk events for the downtown area. Show up to all of these organized events to help spread awareness of your store.
If there’s nothing going on nearby, hold your own event. Offer special discounts or promotions during your event to encourage sales. Decorate your store with a unique theme to help improve the customer’s experience and enjoyment of browsing your wares.
Change Grows a Business
Whatever strategy you decide to choose will depend upon your unique business. Every small business is unique and requires a different approach to grow its influence.
With the right retail expansion strategy, you’ll soon see your profits climbing and your goals met and surpassed. We hope this guide helped give you a few ideas on how to go about expanding your business.
Founded in 2014 in Kansas City, Strategic Capital helps provide capital to the small business community. We help fund the dreams of entrepreneurs looking to grow their business into an empire. Strategic Capital aims to provide the best funding options that match the needs of your business.
Checking for pre-approval will not affect your credit score.