Shoe Store
Shoe Store
THOMASSON SHOES
10 Ritter Rd.
Boston, Massachusetts 02101
Gerald Rekve
We will sell shoes to mid-market customers in the Boston area.
EXECUTIVE SUMMARY
We are going into a market where there is a good opportunity to sell a lot of medium-priced shoes to both men and women.
Mission
Our mission is to provide our clients with comfortable shoes that are economically priced, yet provide the owners of the shoe store with an annual profit that makes this business viable for the long term.
Competition
Our competitors range from high-end to low-end sellers of shoes for men, women, and children.
Other competitors like Wal-Mart and Target also sell a lot of shoes to our clients but, like most stores, these stores lack good customer service, especially service dedicated to the department and knowledgeable in the product line. This is where we will excel and set ourselves apart from the competition.
OPERATIONS
Location and Facilities
We will lease 1,800 square feet in the downtown core to set up our shoe store. The reason we have chosen the downtown core is because our product is destination purchased and not an impulse purchase. The downtown core is where you will find all the need-to-go-to type stores. Our clients will search us out and drop into our store. Finally, three of our largest independent competitors are operating out of a downtown location.
We will lease the location for the simple reason that it will cost us roughly 40 percent less in monthly costs as compared to purchasing the location. This being so, we would opt to lease the property even if the location was up for sale.
FINANCIAL ANALYSIS
Start-up budget
- Advertising-$5,000
- Inventory-$150,000
- Leasehold improvements-$20,000
- Staffing-$10,000
- Miscellaneous items-$5,000
- Legal-$1,500
- Accounting—$1,500
- Office supplies-$500
- Office equipment-$2,000
- Office furniture-$2,000
- Power/Utilities-$1,000
- Auto-$1,000
- Fuel-$500
- Meals-$500
- Phone book ads-$1,200
- Lease first and last months rent-$2,400
- Salary-management-$5,000
- Salary-staff-$12,000
The owner's investment is $100,000; the remaining balance of $80,000 will be secured from the bank as an operating line of credit.
Major Suppliers
- Alisida SA (GREECE)
- Alpargatas s.a.i.c. (ARGENTINA)
- B.B. Walker Company (UNITED STATES)
- Barry (R.G.) Corporation (UNITED STATES)
- Bata India Limited (INDIA)
- Bata Shoe of Thailand Public Company Limited (THAILAND)
- CEPS PLC (UNITED KINGDOM)
- Chausseria (FRANCE)
- Crocs, Inc. (UNITED STATES)
- Deckers Outdoor Corporation (UNITED STATES)
- FGI Group Inc. (UNITED STATES)
- The Fashion House Holdings, Inc. (UNITED STATES)
- Feng Tay Enterprise (TAIWAN)
- Grendene SA (BRAZIL)
- Grimoldi S.A. (ARGENTINA)
- K-Swiss Inc. (UNITED STATES)
- KTP Holdings Limited (HONG KONG)
- King's Safetywear Ltd (SINGAPORE)
- Kingmaker Footwear Holdings Limited (HONG KONG)
- LaCrosse Footwear, Inc. (UNITED STATES)
- Lambert Howarth Group p.l.c. (UNITED KINGDOM)
- Merchant House International Limited (AUSTRALIA)
- Nike Inc. (UNITED STATES)
- PT Fortune Mate Indonesia Terbuka (INDONESIA)
- PT Sepatu Bata (INDONESIA)
- PT Surya Intrindo Makmur Terbuka (INDONESIA)
- Pan Asia Footwear Public Company Limited (THAILAND)
- Pegasus International Holdings Limited (HONG KONG)
- Pou Chen Corporation (TAIWAN)
- Prime Success International Group Limited (HONG KONG)
- Puma Aktiengesellschaft Rudolf Dassler Sport (GERMANY)
- Regal Corporation (JAPAN)
- Rocky Brands, Inc. (UNITED STATES)
- Salamander Aktiengesellschaft (GERMANY)
- Sang Lim Leather Co., Ltd. (KOREA (SOUTH))
- Skechers U.S.A. Incorporated (UNITED STATES)
- Skins Inc. (UNITED STATES)
- Stephane Kelian (FRANCE)
- Sunny Global Holdings Ltd. (HONG KONG)
- Symphony Holdings Limited (HONG KONG)
- TOD'S SPA (ITALY)
- The Timberland Company (UNITED STATES)
- Unichem Company Limited (KOREA (SOUTH))
- Union Footwear Public Company Limited (THAILAND)
- Vulcabras SA (BRAZIL)
- Wellco Enterprises, Inc. (UNITED STATES)
- Weyco Group, Inc. (UNITED STATES)
- Wolverine World Wide, Inc (UNITED STATES)
- Yue Yuen Industrial Holdings Limited (HONG KONG)
MANAGEMENT SUMMARY
The shoe store will be managed by Tony Thomasson who has over seven years of experience in shoe store management and sales. Tony will hire three full-time staff and two part-time staff to help run the shoe store. All the staff will be trained in all areas of shoe sales, including the health portion for orthopaedics.
All the staff will be paid a salary that averages 25 percent higher than the competitors; this will create a positive draw and allow us to hire only the best, most motivated staff available.
MARKETING & SALES
Our marketing plan includes several facets to help increase sales. We will set up the store with signage that contains quick facts on shoe styles and the various health reasons are shoes are superior to other shoes on the market. In addition, we will run both sustaining ads and sale ads in the local newspaper and radio station that also delineates the benefits of our products. Because radio tends to have a better return for the advertising dollar invested, we will devote more of our budget to the radio advertising than newspaper advertising.
Advertising
Advertising Budget
- Radio-$12,000 annually
- Newspaper-$6,000 annually
- Flyers-$1,500 annually
Customers
We will focus on selling our shoes to mid-market customers. This is the market that Wal-Mart targets, however Wal-Mart also targets the lower end of the sales ratio. We will not sell in the low end market. Even though Wal-Mart sells in our market, we are very confident that our customer service skills will help us sell more products. In the end all clients want is customer service. When our clients go to large retailers most often the client can never get an employee to answer any questions or give advice about the product. Our staff will give this advice and be there to offer the level of service our clients demand.
SWOT ANALYSIS
Business Feasibility & SWOT Analysis
- Strengths: We will be competitively priced, yet we will offer sound advice to our clients about the medical needs
- Weaknesses: We may not be able to be priced lower than large retailers
- Opportunities: We can grow the market where clients want advice and excellent customer service
- Threats: Other independents or chains that educate their staff the way we will and offer excellent customer service