th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

How to set up a grocery

Keep a close eye and a steady hand on operations and supplies to make it work.
By Bernadette Reyes |

Having the goods and enough space does not guarantee the success of a grocery business. Keep a close eye and a steady hand on operations and supplies to make it work.

 

Filipinos spend a big chunk of their money on food. According to the 2006 Family Income and Expenditure Survey conducted by the National Statistics Office, 41.4 percent of household earnings was devoted to food, while 3.7 percent goes to personal care and effects. Alcoholic beverage and tobacco products account for 0.7 and 0.9 percent, respectively.

 

These figures alone say a lot about the prospects of a neighborhood grocery or a supermarket. A grocery sells food and non- food items, and it has a bigger inventory than a sari-sari store. It’s like a supermarket, but it needs a smaller area, less staff and fewer check-out counters.

 

You may not have the capital to open a full-scale supermarket, but you can definitely save up or get a bank loan to finance a modest grocery. Here’s how to go about it:

 

FUNDING. You would need at least P150,000 as working capital to stack up on initial inventory. Another P150,000 may be required to cover the top three operations-related expenses: rent, salary of personnel, and fees for utilities.

 

Don’t expect gains within a year; it usually takes “two to five years” to recover your investment in a grocery, according to Steven Cua, president of Philippine Amalgamated Supermarket Association (PAGASA).

 

LOCATION. Do you plan to open a grocery near a school, a hospital or an office? Find out the demographics of the people in your desired area, and then decide what items your store should carry. Welcome Supermart in Quezon City, for example, is located near a hospital, so it offers infant formula milk and water, which are usually needed by patients and other people who go in and out of the hospital.

 

The countryside can also be a good location for a neighborhood grocery, especially in the absence of a full-line supermarket, says Robert Go, owner of Prince Warehouse Club. His business, which began as a neighborhood grocery in Cebu, is now a wholesaler with multiple branches in Cebu and Leyte.

 

Go says you should also know the following about your market: average grocery expense per household, their livelihood and sources of income, and their shopping habits.

 

STAFFING. You need at least 10 to 20 people to operate your grocery smoothly.

■ Cashiers: They man the check-out counters. If you have three counters, hire more than three cashiers, ensuring smooth operations even when an assigned cashier is unable to go to work.

ADVERTISEMENT - CONTINUE READING BELOW

■ Store manager or supervisor: He assists the owner in store operations. When you have more than one branch, you can hire a supervisor to oversee the operations of those other branches, plus a store manager to coordinate with other stores and share Operating Hours some of the owner’s responsibilities.


Latest Articles

Why Making Others Feel Important Will Make You Happier and More Successful

Learning to improve your relationships with people will help improve your chances of success

byBrian Tracy | September 22, 2017 00:00:00

Why is Malacañang Censoring Key Data From Cabinet Members’ SALNs?

Information blackened out include officials’ cost of acquiring assets and location of properties

byPauline Macaraeg | September 21, 2017 19:00:00

How Did the Declaration of Martial Law in 1972 Affect the Economy?

A look at the impact of authoritarian rule on infrastructure, debt, GDP and inflation

byPauline Macaraeg | September 21, 2017 18:00:00

Will Megawide’s Proposed Train Project Bring Relief to Commuters Along Flood-Prone España?

Billion-dollar project will connect LRT-1 with MRT-7

byElyssa Christine Lopez | September 21, 2017 12:00:00

The Surprising Second Act for One of YouTube's Biggest Stars

Connor Franta has begun planning for a life after YouTube -- building a business that, one day, he...

byLaurie Sandell | September 21, 2017 09:00:00

The 4 Skills Needed to Make a Great Impression

Check out the research behind the first few seconds of meeting someone and how to make a great and...

byVanessa Van Edwards | September 21, 2017 07:00:00

The iPhone of Drones Is Being Built by This Teenager

With the millions he's raised, his flagship product might become one of the most game-changing...

byJesse Hyde | September 21, 2017 06:00:00

Pinoy Kids Need Not Worry: It's Business as Usual for Toys "R" Us

Local franchise holder assures all 34 standalone branches and 44 toy box outlets are open ahead of...

byElyssa Christine Lopez | September 20, 2017 18:00:00

How Much is the Typical Filipino’s Budget for Buying a House?

Real estate portal Property24 profiles the typical Filipino property buyer

byLorenzo Kyle Subido | September 20, 2017 10:00:00

(Video) Meet the Business Owner Who Caused a Z Movie-Like Stampede for the Php8 Zark’s Burgers

Why thousands of customers risked hurting themselves for a burger sandwich

byEntrepreneur Staff | September 20, 2017 10:00:00

What Has JAZA Got To Do With the UN’s Sustainable Development Goals?

Ayala Corp. chairman recognized as pioneer in crafting business strategy and operations around 17...

byElyssa Christine Lopez | September 20, 2017 09:00:00

The Luxuries People Can't Live Without (Infographic)

A recent study found that more people would give up Spotify for Netflix.

byRose Leadem | September 20, 2017 08:00:00