How to Open Grocery Outlet Distribution Centers

How to Open Grocery Outlet Distribution Centers

How to Open Grocery Outlet Distribution Centers

Grocery outlet offers a single product-specific path of distribution. Products move through the distribution centers and then immediately into the stores. Each distribution center uses computerized tracking devices to provide controlled distribution, monitor close-dated products, and offer automated recall. 

At a grocery outlet, the systems are specifically designed to move product fast – so all items you sell in the grocery outlet distribution center move from the warehouse to the client’s store and to the customer’s kitchens at amazing speed.

Overview of Grocery Outlet Distribution Center

Unlike a typical retail business opportunity that does well in a well-established area, grocery outlet distribution centers may not have typical large upfront costs required in order to start a grocery business. The number one factor to consider when opening a grocery outlet distribution center is its location.

The reality is this: you can have the most completely stocked, nice-looking and attention-grabbing shop in the land, but if it is situated in the wrong location or next to a large supermarket selling goods at a substantially cheaper price than you are, the shop will not succeed. However, if you take your time to ensure you are opening a shop in the right location and put your inventory in the right track.

Steps to Start a Grocery Outlet Distribution Center

1. Conduct Market Research

When conducting a market analysis, you need also to carefully consider the location of your new grocery outlet. Consider the demography (such as changes in the number of births, deaths, marriages, etc.) of the area in which you are planning to set up a new grocery outlet. You can use census data to gather more information about your would-be buyers, what products will they likely be interested to buy and how much of disposable income they have.

Get into the street/community and ask local residents about what they want from a new grocery store. Hire a market research consultancy or agency to carry out a survey for you if your budget can carry it.

2. Negotiate with Distributors

You can enter into partnerships or business with distributors. Get in contact with merchants and discuss the kind of deals you can secure from them. If you are just starting out with one outlet, you should spend less, as you need to shop around to get the best prices for the products you are buying. You can even use any quotes you get to calculate the money you will need to make to turn a profit after rent, wages and other expenses.

3. Get it Registered

Now is the time to proceed to your local government office to ask about any licenses you will need to trade or register the business, as the case may be. In addition, you should incorporate your grocery store to stop any liability should anything goes wrong. You can find various useful links to instructions on how to incorporate your business in the state you trade in from

4. Prepare for Tax

An Employer Identification Number is very important, especially for new businesses. All you have to do is to go to the office of the Internal Revenue Service and register for one.

5. Get Your Equipment Ready

Beautify your grocery outlet. Make sure you have shelving, refrigeration units and other fittings installed in your shop, then design branding for its exterior. You can save some money by opting for used fittings from bankrupt stores. However, this might impact negatively on the appearance of your outlet.

6. Hire a Store Assistant

Hire new employees if you need to recruit an extra hand to work with. Familiarize yourself with the local going rate for store assistants. Look for payroll services from a contractor.

7. Tell it to the World

Advertise the opening of your business, tell your colleagues, friends, and associates that you are ready to start. Launch social media platforms and produce fliers and posters advertising the opening of your store. If you have the necessary funds, consider advertising your new offering in the local media.

8. Get Started

Bravo! You are now in business. Take off on a good note and don’t forget to get feedback from your customers. Find out what they want and provide them by replacing what you stock to suit their needs.

The Hard Truth

Customer loyalty to conventional supermarkets has been on the decline since 2011, according to the Food Marketing Institute, but it has been steadily rising for discount grocery stores. There is an unprecedented increase in demand by consumers for discounted products, and grocery outlet distribution centers are the answers!