Is the convenience store profitable? How much upfront investment is needed?

Now that the retail market environment is good, many people have sprouted the idea of opening convenience stores. Convenience stores are not complicated in operation, mainly selling daily necessities and food, bringing convenience to customers, and have always been favored.

Speaking of opening a shop, everyone is most concerned about income. So how much can you earn by opening a convenience store a year? Let the fashion shelf tell you from many angles. If you have plans to open a shop, don't miss it.

How much does it cost to open a convenience store?

The annual income of convenience stores is generally net income, and costs need to be deducted. Therefore, before knowing the annual income of convenience stores, it is necessary to find out the cost of opening stores.

The operating cost of convenience stores mainly consists of three parts: rent, water and electricity, purchase of goods, and employees' wages. If it is a newly-opened store, there will be fees such as accreditation, decoration design and convenience store shelf purchase. On the whole, if it is opened in a better location in a first-and second-tier city, the annual operating cost of the old store will be at least 80,000 ~ 1.5 million. The cost of opening a new store is about 200,000 ~ 300,000.

What is the profit of the convenience store?

The profit of convenience store goods is closely related to the final income. If you want to know how much money you can earn by opening a convenience store, just follow the fashion shelf series to see how much profit the convenience store has:

Daily necessities-the bigger the brand, the lower the gross profit margin. Generally speaking, the profit of daily necessities is about 15%~30%.

Dry grain and oil-if it is a community convenience store, it will inevitably sell some small packaged grain and oil products, and the profit of such goods is generally around 20%~35%.

Catering-leisure food and beverages are the main source of income, and the profit is about 25%~35%.

Cigarettes-There are many brands of cigarettes. Although the sales volume is good and customers often buy it, the profit is actually not much. Generally around 7%~ 10%.

Liquor-Liquor products can be divided into liquor, red wine and beer, and the gross profit of different liquors is different. The general convenience store only sells liquor and beer, and the profit is about 25%~50%.

Other supplies-For convenience, convenience stores will also sell some small daily necessities, such as small clips, stationery, water cups and so on. Although this kind of goods looks unremarkable, the gross profit is generally high, which can reach about 40%~70%.

How much can you earn by opening a convenience store in a year?

After understanding the cost and profit of opening a store, let's talk about the annual income of opening a convenience store.

The sales of food, beverage and cigarettes in convenience stores are relatively large, followed by daily necessities. If it is opened in a place with good traffic, the daily turnover can generally reach 1~3 thousand, the daily net income is about 1 thousand, and the monthly income is about 30 thousand.

It should be noted that convenience store operations will inevitably encounter off-season, and there is no guarantee that there will be high returns every day. In addition, some profitable promotion activities are usually needed to attract customers, and the net profit can be even less. So generally speaking, the annual income of an ordinary convenience store is about15 ~ 300 thousand. If it is a chain store or an important business district, the annual income can reach 300,000 ~ 500,000.

You can't do business in one step. If you want to make more money, you must pay more attention to your customers. Optimize the product structure and adjust the display design of convenience stores to provide customers with a more comfortable and convenient shopping environment. So, are you afraid of not making money?