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For grocery store, let me start with the history of Kroger in a story as an instance of how Bemard H. Kroger started small grocery store and became one of America's largest business retailers generating over $70 billion revenue:
He was a merchant son when Kroger left school at 13 year old to work there as his father lost the family's dry goods store.
But at 16, he started and sold coffee and tea door-to-door and managed a small grocery store business in Cincinnati at 20 as if he wanted to learn how it worked while he sold in a grocery shopping store.
And with his life savings of $372, he started the Greet Western Tea Company as a founder at an age of 24 in 1883.
For his exceptional business skills, it was easy for Kroger to found other 4 stores in 1885 quickly, later 17 stores in 1893 and again 40 stores and a factory in 1902. He was one of the American largest grocery store retailers.
However, when his company was incorporateed, he decided to change its name from the Great Western Tea Company to his own brand name - his surname: The Kroger Grocery and Baking Company in 1902.
With his intelligent business principle, he easily contributed to his business early success and guided it through the decades to the top of its industry. He said as his business principle: "Be particular. Never Sell Anything You Would Not Want Yourself."
With this mindset, Kroger went on to bring about remarkable innovations in the industry. He was the first person to bake its bread for his own stores. And also he was the first to include meat department with the purchase of Nagel meat market and packing house.
Then he sought to offer his customers quality products at the lowest price possible like Nigerian Pinnacle Wholesale Store, like Dugbe Nigerian ShopRite in Ibadan.
What made his business so successful was to manufacture its own products and sell them to customers or consumers at lowest prices. That is so intelligent. Some Nigerian industrialists become multibillionaires because they offer quality products at lowest prices as a manufacturer.
From his mother's homade sauerkraut and pickles which he sold more to his German customers, to his own French brand of coffee, Kroger continued to develop new products over the decades, including peanut butter, ice cream, and soda pop.
Today, his company whose food processing factories had produced thousands of products, which accounted for 26% of its total revenue.
As buying over smaller and financially strapped companies, Kroger had acquired more than five thousand stores in areas close to his company established region in the late 1920s like Aliko Dangote acquired more strapped Nigerian companies under his Dangote Group.
And in 1928, a year before the stock market crashed, Kroger sold his shares in the company for over $28 million.
With William Albera taking over from as a president, the company continued to seek new ways to help its customers get quality products in addition to helping them save money by offering its own-made products at low prices.
That is where gave the company the opportunity to become the first grocery-stored retailer in the US to routinely test the foods, and the quality of the product it sold in the 1930s.
Let me cut this story. What lessons can we learn from this successful story? Here are some of the business lessons I want to share with you as an instance you need to learn if you want to start a successful retailing grocery store business.
Lesson 1: Be Your Own Independence As A Landlord
You must own independence in your grocery store as a landlord. It means you should not rent or lease a warehouse shop for your grocery store in the good location.
Some high Nigerian key players like Brent, BiteMore, FoodCo, Fortress, Homemade Bread, Pinnacle, Danax, etc bought their own independence second handed houses in the good location for their own grocery stores some where as a branch.
Do they rent another warehousing shop for their grocery stores as a tenant? Of course not. They owned independence as a grocer outside the Mall or Plaza.
They are wise. They are well-patronized. But especially Jara, I stopped patronizing its qualified bread I deared most because of its increased cost everyday.
Even when I was told of costed reciped or ingrediented materials after I complained little to the male staff, I still am not sure because they rented a bigger warehousing shop under the mall at Cocoa House that made them to sell food beverage stocks and confectionary foods at little high cost in low prices.
That is where their business was so slow in comparison to the ShopRite even though they offered quality products and service because of its cost in little prices. Slow business means low patronage daily.
Pinnacle now take over ShopRite in competition at prices in the same place at Dugbe because Pinnacle has more well patronage daily than ShopRite because it owned land as a landlord it bought old house for millions at Bova, Dugbe.
Its own independence as a landlady gave her the opportunity to offer quality products at lowest prices. That is where ShopRite lost customers to them.
Lesson 2: Be Your Own Baking Products
Even if you offer FMCG wholesaling/retailing producs in your grocery store at low prices, you should own confectionery foods or baking products like Aunty Bread, Jara, BiteMore, Kroger, Ralphs, Food For Less, etc even when you are not a professional chef or confectioner.
You can operate some professional confectioners or chefs in your store. What customers shop some food beverages and fruits, they will shop ready made baking foods also. That is where you make over thousands daily or over N 50 billion annual revenue in cash.
Lesson 3: Find A Good Location
Before you renovate any old, fair or dilapidated sale house or buy a land for building a great warehouse for your store business, look for a good location in good environment at the junction or zerba road like Ring Road, Challenge, Oba Ademipe, Dugbe, U.I, Bodija Town, Ikeja,Lagos, etc. You make a lot of money daily through its briskly traffic at good location.
Lesson 4: Brand Name.
Your brand name must be original. It must be attractive. It must be one word in short. It must be one or two short phrase. Don't try to think deeply what type of brand name you should like to name for store if you still can't find a right name.
Just ask brand expert to help find best brand name. You see how short and attractive Brent, Jara, Fred Meyer, Trader Joe, BiteMore, Danax, etc are. Where did they find this good idea? I don't know.
Lesson 5: Grocery Delivery Service
You must have an e-commerce website store that you will offer your delivery grocery service to those customers outside your grocery store who contact you for food products they want to buy what they see pictures with prices on your e-commerce website store. You must employ some court order riders.
Lesson 6: Dropshipping Food Beverage Stocks
Why not try to import or dropship some food beverage stocks from suppliers at cheap price for your grocery store? ShopRite, Pinnacle, etc dropship not only local processing foods from suppliers, but also dropship international food processing foods from foreign suppliers.
Lesson 7: Grocery Store Equipments
I don't know what type of equipment I would like to name here in this article. I do not need to copy some of my blogging competitors' named equipment into this article.
What I offer you is to go to any successful store grocers and study what equipment they use for their grocery store business and follow them as an example in different way.
How Much Does It Cost You To Start A Grocery Store?
Do you know how much it costs you to start a grocery store business? Do you want me to tell you how much it costs to start a grocery business?
No. I don't want that. Even if some of my blogging competitors on business tell you it is N2 million, 10 million naira, etc you can start with, I still am afraid about that.
Be careful unless you call a professional engineering architect and tell them about your capital, your location, warehouse type or size and grocery equipment and they may help you to evaluate the cost by working everything on cost in list. And that will let you know how much it costs you to start a grocery store. Simply.
Then they will call one professional constructor that they have a team in painting, welding, carpentering, etc and hand it over to them and they will do it for you in everything while you pay them for your project in hand or money transfer and still sleep peacefully.
Ok? Let me drop my pen here. I hope you enjoy this article?
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#grocery store; #kroger; #delivery service; #grocery equipments; # store business; # supermarket
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