The growing population in South Africa means that the demand for goods is also increasing.  People buy groceries every day so as they are necessities. Starting a supermarket business in South Africa is very profitable. A supermarket is a combination of small division stores, i.e. a grocery store, bakery, a butchery, fresh produce, dry goods, cleaning essentials, etc.  When you walk into a supermarket you will immediately notice that the small divisions are strategically placed all around the store, you are able to move from one division to the next buying whatever you need. Supermarkets offer the convenience of finding everything you need in your day-to-day life all under one roof. This article will outline how to start a supermarket business in South Africa, and the supermarket business plan – PDF, Word and Excel.

Market Research

It’s important that you carry out market research before you start the supermarket business. Important decisions to make include deciding on the location of your business, the products you will offer, your target market and the size of your business. Understand your target market, and what kind of products they want. Identify and study your competition. Assess the competition at your proposed location. Through carefully studying your competition and customer trends you will find a gap in the market and also find ways to offer better services. You need all the information you can get to formulate a great customer experience model that won’t be easily contested. You should also have a good supermarket business plan before you venture into this business.

Location & Premises for Supermarket Business

Location is a very important decision which affects the success of your supermarket business. The location must be a busy place with a lot of traffic. It should be easily accessible by both foot and vehicles as that gives convenience to your customers. A supermarket is a high volume, low margins business, so you need to get a good location with a high number of customers. This ensures that you push sales volumes up, thus increasing your profits. Your supermarket should be close to your target market so that customers don’t travel long distances to get to you. Having to drive long distances just to buy two or three items isn’t practical. If you find a location that’s a walking distance away from the community you want to serve – you are on the money! Supermarkets are best located in shopping centres & malls, urban centres, townships and CBDs.

Space is very important when it comes to this business. An average sized space is more ideal but if you have to choose between a space that’s “too large” and a space that’s “too small”, it would be advisable to go for something that’s “too large”. A small space is too restrictive whereas a large space allows some room to grow. You will need premises which include the main store, back offices, and a warehouse for your products.  Your premises should have sufficient parking space for your customers. Your grocery store business plan should cater for the costs of renting or buying premises.

Products

There are a variety of products which can be sold in a supermarket. Examples of products you can offer at your store include:

  • Food items
  • Toys
  • Groceries
  • Household Products
  • Kitchenware
  • Pharmacy products
  • Pet supplies
  • Baked goods
  • Stationary
  • Garden essentials
  • Beauty cosmetics

The kind of products which you sell will depend on your targeted market and the amount of capital which you have. What’s important is to provide a variety of products for your customers to choose from. Supermarkets are one stop shops where customers expect to find everything. You should also take into consideration the profit margins of your products, as this is a business and it has to be profitable. If you are starting with limited capital, you can focus on basic commodities which move fast. With time you will then be able to stock a wide variety of products in your supermarket. The products can be sourced from South Africa manufacturers, Distributors and International Suppliers. 

Staff & management

The number of employees you need will depend on the size of your grocery store business. The is need for finance/accounting personnel who will be responsible for all the day to day transaction accounting for the supermarket business. This will include the tracking of all transactions and the management of cash flow, and ensuring there are enough funds available to meet the day to day payments.

Operations & logistics personnel are responsible for coordinating with suppliers and sourcing all the products which will be sold in the supermarket. They are also responsible for inventory control, ensuring that the grocery store has all the products in stock and in the right quantities, and determining when to place new orders. You also require cashiers/till operators and shop assistants. Your supermarket business plan should cater for the salaries of your employees.

Supermarkets usually fall victim to theft. It would be advisable to use the  services of a security company in order to ensure that you are not targeted by shoplifters. It is also your responsibility to ensure that your staff is safe. Having security cameras in your store will help with the issue of shoplifting and contribute to the overall safety of your staff.

Expiring dates need to be checked! If you keep food items that have expired on your shelf you will lose the trust of your clients. You can employ a “mark-down” strategy for any items that are close to expiring. The “best before” date is another important date to note. You can use a system that will help you keep up with expiry dates or ask some staff members to check expiry dates.

Market for the grocery store business

According to BizNiz Africa; stats released by the VBMA Food Processing and Packaging Machinery Association reveal that 7 million tons of packed food were sold in South Africa last year. The demand is expected to rise by 6% until 2022. Why are South Africans buying packaged foods? You spend far less time standing in the kitchen, that’s why! A supermarket business that’s aimed at selling products that are affordable and easy to cook is sure to be a hit. People are always looking for something that’s quick and convenient. Going to a local supermarket to buy quick-to-prepare packed food is much cheaper than ordering take-outs. You will never go wrong with groceries and foodstuffs. These are basic commodities and not luxuries. Thus people will continue buying irrespective of the state of the economy.

PRE-WRITTEN SUPERMARKET BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the supermarket business in South Africa, purchase our supermarket business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the grocery store business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a grocery store business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the grocery store business plan will lay out all the costs involved in setting up and running the supermarket business. The business plan is designed specifically for the South African market.

USES OF THE GROCERY STORE BUSINESS PLAN (PDF, WORD AND EXCEL)

The supermarket business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your supermarket business
  • As a supermarket project proposal
  • Assessing profitability of the grocery stores business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE SUPERMARKET BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

  • Market Analysis
  • Industry Analysis
  • 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
  • Marketing Strategy
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some South Africans in the supermarket business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your supermarket business in South Africa

The Supermarket Business Plan package consist of 4 files

  1. Supermarket Business Plan – PDF file (Comprehensive – 88 pages)
  2. Supermarket Business Plan – Editable Word File (Comprehensive – 88 pages)
  3. Supermarket Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 47 pages)
  4. Supermarket Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change eg the markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

GET THE SUPERMARKET BUSINESS PLAN (PDF, WORD AND EXCEL) – R400 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 400 Rands.

We have several payment methods which you can use.

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If you want to purchase multiple business plans at once using Visa Card/MasterCard then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.

Payment Method 2 (Instant EFT – FNB, Absa, Standard Bank, Nedbank, CapitecBank and Investec. )

Click Buy Now below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Instant EFT then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on sales@bizbolts.co.za and we will assist you.

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