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Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround
All Purchased Plans
Are Updated for 2018
Clothing Store SWOT Analysis
Strengths
Although their revenues are subject to fluctuation, clothing stores are able to generate substantial gross margins from men's, women's, and children's clothing. Depending on the targeted client base, most clothing stores are generally able to remain profitable or near breakeven during times of economic recession. The gross profits and gross margins for a clothing store are generally 50% to 70% depending on the type of apparel being sold. Startup costs for a clothing store are relatively low. A new retail location can be started for as little as $20,000. Larger clothing stores (like those found in malls), have startup costs ranging from $100,000 to $300,000. The most important thing for these businesses is to make sure that they have enough cash on hand while the business moves into profitability. One of the best strengths for a clothing store is that there are number of ways that they can expand their revenues.
Weaknesses
More so than most other industries, competition within the apparel market is substantial. It is very difficult for a new clothing store to maintain profitable operations if they do not carry the latest in brand name clothing. Alternatively, some clothing stores focus on lesser quality yet affordable clothing in order to drive revenues by volume rather than larger gross margins. As such, within a clothing store business plan - it is extremely important for an entrepreneur to outline exactly how they intend to market the business to the general public in order to drive sales from the onset of operations. Retail clothing stores also have significantly high operating costs given that a visible location needs to be sourced.
Opportunities
Beyond establishing new retail locations, the best way to increase the revenues of a clothing store is to maintain an expansive presence on the internet. This includes not only a stand alone website, but sales profiles on popular third party websites as well. This allows independent clothing stores to be able to divest inventories anywhere in the country. Banks and financing companies will generally provide loans to established clothing stores that are looking to expand. However, this is usually the case only in times of economic prosperity.
Threats
Beyond the ongoing competitive issues faced by clothing stores, there is nothing that would impact the way that these types of retail stores conduct business. However, it is of the utmost importance that a retailer maintain an expansive marketing campaign in order to develop a loyal customer base.
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