How to Start a Shoe Retail Store

Create displays for your shoe store to attract customers.

Planning for a new retail shop or boutique specializing in shoes often includes incorporating visual displays for arrivals of new merchandise. When certain styles aren't big sellers, prices are reduced to cut inventory and make room for new merchandise. Once the business is established, the store's floor plan and displays need to be created. The grand opening usually includes discounts to attract customers and familiarize the area with the new store.

Things You'll Need

• Graph paper
• Drafting pencils
• Circle template
• Floor plan
• Interior design furniture template
• Digital camera
• Professional photographer (optional)
• Printed postcards
• Internet

Instructions

Creating the Floor Plan

1. Divide your shoes into separate categories such as sandals, boots, mules, pumps and platforms.

2. Categorize each group by separating designer brands from nonbranded labels.

3. Sketch your shop's square footage on graph paper with drafting pencils. This will be the base for your floor plan.

4. Divide the floor plan into separate sections representing the categories made in steps 1 and 2 by making divisions in your floor plan with a circle template.

5. Write a brief description of the brands within the designated section. You will use this floor plan as a guide when setting up your shop and creating visual displays.

Merchandising and Marketing Your Shoe Store

1. Position the shoes within a complementary color scheme by coordinating them by color. Mix a bold shoe color to add a different dimension to the display. For example, if you are displaying bright summer shoe colors such as orange and yellow, opt to add a trendy color such as turquoise with ornamental trim such as beads or feathers.

2. Design shoe displays by drawing the display area on a separate sheet of graph paper. Keep your original floor plan in mind. You can use an interior design furniture template to mark off trade fixtures such as racks and tables and sketch several different placements.

   Visual merchandisers use this technique to design and develop the best placement. Use the graph as your guide to set up the displays in your store.

3. Photograph the shoe displays in a complementary setting with a digital camera, or hire a professional photographer. For example, if your spring shoe collection is on sale, photograph the shoes surrounded by spring-related props such as flowers or natural elements such as wood, leaves or seashells. Keep your advertising budget in mind. Interchange fresh flowers for fabric or tissue flowers.

4. Calculate your pricing as well as sale pricing by taking your retail price and subtracting your wholesale cost. This will be your operating profit margin percentage. For instance, a $20 shoe at retail that cost your $10 wholesale equals a 50 percent profit margin.

   You will have to reduce your profit margin for sale prices and percentages. For example, the same $20 shoe at retail at a 25 percent discount makes the selling price $15. Although you won't be operating at a 50 percent profit margin, you'll be able to clear your inventory cost and operate at a 25 percent profit margin.

5. Advertise your shoe store with your budget in mind. Retail shops and boutiques can hand out printed postcards. Larger advertising budgets allow them to contact local radio stations for airtime rates.

6. Register with Internet social media sites and create a business account, which are usually free. Offer an extra 5 percent discount coupon for customers who register on your site to be applied to their first shoe purchase.

References

• "Visual Merchandising: Windows and In-Store Displays for Retail," by Tony Morgan (2008)