How to Start A Departmental Store of Your Own

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You are wondering how to start a departmental store of your own? Well, here’s all you need to know about it. 

Departmental stores or Kirana stores need no introduction. They are a big part of the Indian society that has all the required goods in our homes.

There are several things that are sold in a departmental store like Rice, Sugar, Wheat, Vegetables, Spices, Snacks, Coffee\tea, Toothpaste, Shampoo, Sanitizer, etc. Also famous as corner shops and convenience stores. 

How to Start a Departmental Store

Licenses and Documents for Departmental Store

There are several types of licenses and documents that are needed by anyone who wants to start their own department store.

  1. Identity Proof
  2. Registered Office Address Proof
  3. Address Proof
  4. GST Certificate
  5. FSSAI License (for food products)
  6. Shop and Establishment License

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Things to Consider Before Starting a Kirana Store

While starting a departmental store, there are many things that one should consider before starting a Kirana store. Apart from all the licenses and documents, here’s everything you must think about before starting.

Location

One of the most important things to remember is that location plays a vital role in starting any business. When choosing a location for your store, make sure that the competition around you is low, the shop is located nearby a residency and the rent of the space is not a lot. All these factors are pretty important and must be taken into account.

Investment

Once your location is decided, investment is the next important step. You can either get a franchise for the departmental store or open your own. If you decide to buy a franchise, these are the things you must keep in mind:

  • When buying a franchise you pay an initial fee and ongoing royalties to a franchisor.
  • The franchisee, in return, gets the use of a trademark, ongoing support from the franchisor, and the right to use the franchisor’s system of doing business and selling its products or services.
  • Other than this, there are many other advantages of buying a franchise that is not given to the people starting a business from scratch. 

If you are planning to open a store of your own, these are the things that you must know:

  • A departmental store that is self-started is less expensive than getting a franchise.
  • Investment is actually based on the location you choose, so choose wisely. 
  • Find yourself distributors who get you quality and nice products but at a reasonable price.
  • Establishing a healthy and good relationship with your customers is another important aspect. 
  • Have all the necessities and are fully stocked at all times.

Related: Few Businesses Indians Can Start in 2022

Inventory

  • Start visiting all the stores near your location and make a list of things that they have in store. List all the brands and things they have in store and clearance bin items.
  • Buying things from a distributor is a little expensive as compared to buying from a wholesaler as a distributor sells a lot of various products. They make a profit, so their prices are slightly higher if the item is purchased directly from the manufacturer.

Try to reach out to the direct suppliers and not have any middle man.

Accordingly, your profit margin is increased and it also reduces the time for the product to reach you. You can also reduce costs with any of the free inventory management apps that make tracking hassle-free

Benefits to starting your departmental store from scratch:

  • A store that you start yourself is less expensive and more convenient than you buying your franchise.
  • You can make your store as you want it but make sure you keep the demand and needs of your customers in mind as that would strengthen your relationship with them.
  • Find out the highest selling point and keep a stock of that product.
  • Keep sure you always have a stock of all the basic essentials that your customers need.

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Tips to Increase Sales

Here’s how to increase your sales to the maximum:

  • Make use of technology for payments and other transactions.
  • Give amazing combos and discount offers to your customers.
  • Get your customers’ phone numbers and share discounts and offers.
  • You can keep your store open on weekends.
  • Have loyalty programs that are beneficial for both customers and you.
  • Offer home delivery to nearby customers.

Ways to increase profit

There are many ways with the help which you can increase the profit of your departmental store. Follow the undermentioned steps and you would be successful in increasing profit:

  • Open your store on weekends
  • Attractive discounts and offers
  • Give online payment option to customers
  • Always be stalked well
  • Have diverse grocery options

Also Read: How to Start your Mobile Shop?

How can Lio Help in starting a departmental store?

Lio is a popular app that is here to make your life much more organized and convenient. With this application, you can keep a track of all the things right from the beginning of the business to the peak.

With multiple templates for shopkeepers, one can keep a note of all their contacts, locations being shortlisted, licenses and documents required, money transactions, products required, and absolutely everything that one might want.

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You can also upload your own document to the app. Add photos and you can collaborate with others on the same sheet. 

Not downloaded the Lio App yet? Here is how you can start with Lio App.

Step 1: Select the Language you want to work on. Lio for Android

Choose from 10 Different Language offered by Lio

Step 2: Create your account using your Phone Number or Email Id.

Create Account using your Phone Number or Email Id in Lio

Verify the OTP and you are good to go.

Step 3: Select a template in which you want to add your data.

Choose from 60+ Templates offered by Lio And Start Adding Your Data

Add your Data with our Free Cloud Storage.

Step 4: All Done? Share and Collaborate with your contacts.

Share you files with friends and colleagues

Frequently asked question

What is the Profit Margin for a Kirana Store?

Profitability for Kirana stores, apart from store capacity, in India ranges anywhere from 5% to 25% per cent.

India Kirana stores are an ever-growing market in India hence many imported and local brands compete to and reach every house in the country.

What Licenses are Required for the Kirana StoreS?

The licenses required are-
Food license
Unit Registration
FSSAI license
Shop and establishment registration

Which is the Most Popular Grocery Store?

Here is the list of the most popular and notable online grocery stores Big Basket-

Big Basket
Grofers
Nature’s Basket
Amazon Pantry
Flipkart Grocery
Zopnow
Spencers
Easyday
DMart
RelianceSMART

What are Common Grocery Items?

The most common grocery items list in India are-

Rice
Flours (rice flour, wheat flour, etc.)
Dal
Spices (Powdered Masala and Khada Masala)
Sugar
Tea Coffee
Vegetables 
Snacks

Conclusion

Opening a departmental store is sure exhausting, but you are already one step ahead in the process with the given tips. Make sure you keep in mind all these things and make all the right and wise decisions to have a successful and profitable running business

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About the author

Ashutosh Bhatt

Ashutosh joined Lio as the marketing manager and has played a significant role in our growth. A traveler at heart, you might just catch him on a flight to any exotic countries around the world when he isn't busy ranking websites.

10 comments

  • Please provide a brief explanation of the items we can provide when we open our department store.

    • Hello Naveena,

      Department stores are types of stores where a large range of products are sold. These often consist of ready-to-wear clothing and accessories for adults and children, textiles for the home and yard, minor home goods, furniture, electrical equipment and accessories, and often food. 

      According to the products they sell and the prices they charge, department shops are sometimes categorized; common divisions include bargain, general retail, fashion or high fashion, and specialty. Numerous businesses also provide extra services like gift-wrapping, adjustments, delivery, and personal shopping.

  • Thank you very much for all of your articles,  help a lot of people like me. Please let me know what the profit margin is for starting a grocery business.

    • Hello Kaushik,

      Thank you so much for your kind words.
      I’m pleased to hear that you found this article to be informative.

      The quality of the goods and store upkeep are the two key factors that affect earnings.
      For an Indian grocery business, a 35–40% profit margin is typical.

  • This is without a doubt one of the best articles I’ve ever read. Very detailed and helpful. Thanks a lot.

  • Could you please recommend a few apps for buying groceries in India? I’ve tried purchasing via an app before, but I didn’t really like it. A good app that delivers high-quality groceries is what I’m looking for.

    • Hello Akanksha,

      Some of the top grocery shopping apps in India include Big Basket, JioMart, Grofers, Godrej Nature’s Basket, ZopNow, and Dunzo.
      These services guarantee timely delivery of high-quality goods.

  • Pls tell me what pricing strategies are. It would be of great help if you could explain it in simple terms..

    • Hello Kanchana,

      A pricing strategy considers, among other things, segments, ability to pay, market conditions, competitor actions, trade margins, and input costs. It is aimed at specific customers and competes with them. Depending on the industry and business model, value-based, competition-based, cost-plus, and dynamic pricing are all common pricing models.
      I hope this is clear for you.

By Ashutosh Bhatt