If you are considering opening a retail clothing store in Phoenix or anywhere else, you have a lot of planning and work to do. You should have an interest in fashion either from a design perspective or an off-price deal finding store to help clients stretch their dollars. With that in mind you should start with research before you out and borrow money from friends or family or invest your savings.
Location for your clothing store
The location of your apparel outlet will help you determine quite a bit in the planning stages. You have many alternatives for locations from strip malls, swap meets or flee markets to full indoor shopping malls. There are many advantages and disadvantages of each. A swap meet or flee market will certainly help keep costs down as the rent should be the lowest. But your buyers will expect bargains so it will limit the price point of the clothing that you might carry and you might want to purchase discount wholesale clothing to help meet their expectations. Many clothing wholesalers purchase bulk lots of apparel from manufacturers at great discounts which they can pass down to you and your customers. At a retail mall, whether strip or enclosed mall, the price per square foot will be much higher but you would expect more foot traffic. Be sure to visit the mall at various times of day and days of the week to see for yourself how many people visit. We have some shopping malls in Phoenix that were once very busy but now are close to abandoned and constantly have stores coming in, closing and leaving. Just because your mall is the cheapest doesn’t mean that it is the best. Once you know the cost of rent for your proposed location, you may calculate how much income you might need to help meet the expenses. Most owners agree that 10% of your income should go to rent, so if your rent is only $2,000 a month you might want to plan to get $20,000 in total revenue a month (more than that is better) and so on (We suggest you also check with SBA resources for starting a clothing business such as SCORE in Phoenix, Arizona or wherever you are located. They may have people with experience in your industry that can help you.
What is next in planning your retail apparel store?
After your have locations scouted out and you know how much you might need in sales, start calculating other costs to be sure you have enough to get started. Not to scare you, but many businesses including clothing stores, do not make it past the first year. One of the reasons is not enough cash to start. We have calculated an allowance for rent and if you can make that work you also have to pay employees unless you and your family/partner/spouse plan to run it yourself. Many business owners have an expectation of 10% of their total revenue or sales to go to payroll. Would you be able to hire people with that budget in your city? Check with other retail stores as a perspective employee and see how much the pay is to get an idea. Other business professions like those mentioned above may help you with more financial planning and advice, ours is not tax, legal or other advice, just a few tips.
Buy Wholesale Clothing
After you are done planning or you want to start testing at local swap meets you will want to find a wholesale clothing distributor that you can work with. If you are in Arizona, one of the advantages of a wholesale clothing store in Phoenix is that you can keep your shipping costs down. We have seen some shipments from across the USA have an increase in cost of 25% or more because of the cost of shipping which has increased with the price of oil/fuel. Buying locally can save that money for you and your customers. If you are near the same city as your distributor, you may be able to pickup your order yourself which will not only save you money on shipping but you may be able to get away with not storing as much inventory as you may be able to replenish as you make sales after stocking your store. We would love to be your wholesale source for lingerie, clothing for men and women, T-shirts for printing or casual wear, swimwear, loungewear and more whether you are in Phoenix or another city or state be sure to contact us for more information on how to shop locally or if you are out of state or far away we may be able to help you buy online with us.