In the U.S., grocery store sales are nearly $683 billion, according to Statista, and that isn’t to mention convenience stores, of which there are more than 150,000 throughout the country responsible for an additional $235 billion.
Competing with recognized, established grocery and convenience stores can be challenging, particularly if you lack the capital you need to promote your brand and build a solid customer base. That’s where a grocery store loan can help.
Why Apply for Grocery or Convenience Store Loans
Whether you’re managing through a temporary downturn in business, want to expand or simply don’t want to tap into your cash reserves, a grocery store business loan can help with anything of the following needs and more.
Could your store benefit by having an additional team member, one you’re currently lacking? Hiring the right talent can be a costly expense, but one that could be financed. Keep in mind, grocery store managers in the U.S. average slightly less than $81,000 annually in pay, according to Salary.com, while assistant managers average about $57,830. Additionally, grocery store clerks earn nearly $22,650 on average.
A convenience store might have an inventory of several hundred stock keeping units (SKUs), while a grocery store likely has several thousand. If you’re looking to replenish your supply, a bulk purchase could be pricey, but it’s necessary when you sell food and drink staples. A grocery or convenience store loan could provide the capital you need to restock your shelves and backroom.
When equipment breaks down or it’s time to upgrade, grocery store financing is an option for what could be a rather large purchase. Use funds for any of these (and more):
- Shopping carts
- Delivery van
- Point-of-sale systems
- Merchandise displays
Invest in Marketing
Marketing your grocery store or convenience store isn’t just about circulars and outdoor signs. Today, many business owners are investing in creating loyalty programs as well as expanding their reach online, not only with a website but also with email marketing and mobile applications.
On the lower end, let’s say your lease costs you $1.50 a square foot a month. If you have a 2,000-square foot space, roughly the size for a convenience store, that would equate to $3,000 a month.
Obviously, with grocery stores, the price just goes up because of larger spaces. On the smaller end, grocery stores could be 12,000 square feet. Larger ones could range from 50,000 to 140,000 square feet. The dollar signs can add up quickly.
Open Another Location
Is business going so well that a second location is viable? A loan to buy a convenience store or grocery store could help you grow. You could also use financing to secure a lease for new retail space.