One of the biggest things that has become clear in the wake of the global pandemic is that businesses that provide basic necessities will always be in demand. This includes hospitals, clinics, stores selling cleaning supplies, and especially grocery stores and supermarkets. Having access to daily essentials and all the ingredients needed for cooking at home is especially important during this time. On top of that, the grocery business offers investors a lot of benefits, especially in the long term.
To know if you should invest in a grocery store now, check out the list of benefits this business offers. Keep reading below.
Grocery stores are always in demand
Nothing is more important for people than having basic necessities. This point has been emphasized during the pandemic as many people have stayed home primarily. Grocery stores help provide these necessities, as well as household items that are helpful for household chores and items like junk food that people typically buy for fun.
Currently, the pandemic and its effects are far from over, but the demand for grocery stores is expected to continue. Grocery stores provide convenience to nearby residents, so they will always be in demand, making such businesses a stable investment.
If you are looking for your own grocery store business, IPS Cambodia has many listings of commercial businesses like this grocery store in Old Market, Siem Reap. Please contact us and an IPS agent will contact you shortly.
It's a resilient business
Other commercial businesses, such as restaurants and hotels, are typically in high demand but can experience slower demand depending on the economic situation. This is not the case for grocery stores, as they have proven to be resilient in economic downturns, primarily due to their unique characteristics as a business and what it means to their customers. See below.
Fresh products: Many products sold in grocery stores, such as meat and pastries, are perishable and therefore need to be consumed immediately. Thus, people need to purchase these products every few weeks because they have a deadline by which they can be eaten or used, which contributes to the resilience and demand of grocery stores. Routine: Given the constant need for fresh food and other necessities to maintain a healthy household, going to the grocery store once every one or two weeks has become a routine for most people. This is not true for other commercial businesses, such as restaurants. People do not need to include it in their weekly or monthly routine. Customers' individual preferences: One of the biggest features of grocery stores is that they sell many products and ingredients and cater to the various individual preferences of their customers. Thus, grocery stores have a larger and more diverse customer base than other businesses.
How much money can grocery investors make?
Investing in a grocery store business for the first time requires a large amount of capital considering that you will have to buy your own store or look for a location to open your store. After that, you will have to obtain the necessary permits if you don’t have them already and stock your store with all the goods you need for the convenience of your future customers. In addition to the goods and utilities, you will also have to consider the cost of hiring manpower to ensure that your grocery store business can run smoothly.
Taking all this into account, the average profit for a grocery investor is 1% to 2%. This may seem low, but if your store makes roughly $150,000 in profits each week, a 2% profit could get you home with $30,000. If your store is successful in the long run, your profit margin could go as high as 5% to 12%.