Do you want to start a shoe store business and want to know the cost? If YES, here is a cost breakdown to open a shoe shop and the profit margin / ROI. As the name implies, shoe stores basically retail footwear. Shoes stores primarily purchase footwear from wholesalers and retail them directly to end users – customers. Experts project that the industry will grow at a 2.4 percent annual rate.
Establishments in this industry that have dominant market shares in the united states of America are; Caleres, Design Shoe Warehouse (DSW), Foot Locker Inc., Brown Shoe Company and Payless Shoes. In combination, they account for roughly 31.7 percent of the revenue generated in the industry.
The shoes retail industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner or on a large scale with several outlets in key cities through the United States of America.
The Estimated Cost Breakdown to Open Shoes Retail Shop
Interestingly, you may not need to break the bank to open your shoe retail shop because you can actually save up to get it done. When it comes to starting a standard shoe retail store, one is expected to spend the bulk of the startup capital on renting a store facility.
Aside from that, you are not expected to spend much except for purchasing a wide range of shoes depending on your niche area, paying your employees and utility bills. This are the key areas where you will spend your startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the shoe retail shop in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring business consultant including writing a business plan – $2,500.
- The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $35,600.
- The cost for shop remodeling (construction of racks and shelves) for the show room – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for start-up inventory (stocking with a wide range of different sizes and brands of men’s shoes, women’s shoes, men’s athletic shoes, women’s athletic shoes, children’s shoes, slippers and other types of shoes such as Hosiery and sports footwear, golf shoes, bowling shoes and cleats et al and other related merchandize) – $60,000
- The cost for store equipment (cash register, security, ventilation, signage) – $4,750
- The cost of purchase and installation of CCTVs: $2,500
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a website: $600
- The cost for our opening party: $3,000
- Miscellaneous: $2,000
From the rough estimate as listed above, you would need a minimum of one hundred and eighty – seven thousand, nine hundred and eighty USD ($187,980) to establish a medium – scale but standard shoe retail shop business in any city in the United States of America.
Please note that this is a rough estimate and we usually advise our readers who are interested in opening a shoe retail shop to go to the market or directly contact distributors and wholesalers of the types of shoes they want to retail in order to get the real time wholesale prices of these items. The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.
Frequently Asked Questions
How Do You Start A Shoe Store?
Here are a basic steps to help start a shoe store business.
- Choose a Business Niche
- Put Together a Business Plan
- Acquire Permits and Licenses
- Open Wholesale Accounts
- Lease a Storefront
- Organize Your Store
- Market Your Business
How Much Does It Cost To Start A Shoe Store?
Note that the cost to start a shoe store will more or less depend on some factors, including your business niche, the store’s size, and the volume of inventory you look to start with. However, you should expect to spend around $60,000 and up to start a small scale store. Note that bigger stores with more enormous inventory can cost around $150,000 and above to start.
Is A Shoe Store A Good Business?
Yes, a shoe store is a wonderful and lucrative enterprise to start especially for individuals who love fashion. Note that having extensive retail experience helps, and also the love and appreciation for shoes and apparel. People who love and adore accessories, like purses and jewelry will also enjoy starting and running a shoe store.
Where Can You Buy Shoes For Retail?
- Nike store
- Finish Line
- JD Sports
- Foot Locker
- Stadium Goods
How Do You Become A Nike Vendor?
To become a Nike vendor, here are steps to take;
- Email Nike’s retail services
- Download the PDF file
- Read the Terms and Conditions
- Fill out your ‘Retailer Business Profile’
- Fill the Nike Application and Agreement section
- Fill in information about your reseller license
- Secure a guarantor
How Do You Get A Deal With Nike?
Nike is renowned for changing the concept of athlete endorsements by signing lifetime agreements with Michael Jordan, Lebron James, and Cristiano Ronaldo. However, to get a deal with Nike, you only have to contact your sports agent or someone with legal expertise to discuss its terms. Take your time to make sure the terms are favorable to both parties. If it is not, you can renegotiate your contract.
Where Can You Search For Decor And Equipment For Shoe Stores?
- Shop Online
- Big Box Stores
- Department Stores
What Are Some Skills And Experiences That Will Help You Build A Successful Shoe Store?
To start and run a successful shoe store, you will need to have a good eye for marketing. You will also need to be conversant with acquiring wholesale shoes at good prices. Note that the business values of paying bills on time, conforming with shoe brand’s rules and all other industry regulations will boost your business.
How Can You Start A Shoe Store With No Money?
You can start a shoe store without much money. You can sell shoes online from your own store created with a platform like Shopify, on third-party marketplaces like Amazon and eBay, and on social media sites like Instagram and Facebook. In addition, there are niche marketplaces for shoes, like StockX and GOAT.
Do You Need A License To Resell Shoes?
Yes, you will need, at minimum, a seller’s permit to resell shoes. You will also need a general business license and also a business tax ID called a federal tax ID number or Employer Identification Number (EIN) to identify your business for tax purposes.
How Do You Go About Product Selection When Creating An Online Store For Shoes?
You go about product selection by first researching and studying the market carefully to know your target audience. Defining your target audience can solve this issue and also help your business strategies in many ways. Note that the audience in the online industry functions differently from that of a physical store. Physical store owners may not always interact with customers, but as an online shoe store, you need to have a clear understanding of your eCommerce target market.
How Much Money Does A Shoe Store Owner Make?
According to industry reports, an average shoe store in the United States generates around $851,076 in sales, with a profit of around $127,363 for the owner. These stores are known to offer a big return on investment, a little around 46 percent.
Can You Sell Nike On Shopify?
Yes, you can sell virtually anything on Shopify as long as they are legal products.
What Is The Average Markup On Shoes?
Around 100-500%, depending on sizes and styles.
How Much Does It Cost To Become A Nike Retailer?
According to the company, there is no cost to become a Nike retailer. However, since you are expected to own a physical or digital retail shop before putting in the proposal, you will have to invest in a sportswear store. Have it in mind that the exact amount of start up funding you require will depend on whether you want to own an online or brick-and-mortar sportswear shop.
Is Shoe Making Business Profitable?
Yes, shoe making is a very profitable venture, and according to industry statistics, the global market was valued at $365.5 billion in 2020 and is estimated to grow to $530.3 billion by 2027.
How Do You Go About Finding Wholesale Vendors?
- Do an online search
- Leverage the US customs database
- Attend trade shows
- Professional networks
- Subscribe to Industry’s Trade Publication
- Join Industry groups and forums
Where Is The Best Place To Start Selling?
Where Can You Find The Best Suppliers?
- Trade directories
- Trade shows and exhibitions
- Social networks
- Trade association
Can You Sell Nike On Amazon?
Yes, you can sell Nike on Amazon, but you have to seek and get approval.
How Do Top Retailers Acquire New Customers and Grow Online Sales?
- By choosing the right acquisition channels
- Making use of videos.
- Hosting giveaways.
- Leveraging referral program.
- Improving website and email engagement.
- The use of influencers.
- affiliate discounts
How Much Does A Sneaker Reseller Make?
As of Aug 17, 2021, the average annual pay for a Reseller in the United States is $95,190 a year, which is approximately $45.76 an hour, $1,831/week, or $7,932/month.