Should You Invest in a Grocery Business?

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Should You Invest in a Grocery Business?

Posted by IPS Commercial on December 13, 2022

One of the biggest things that became apparent in light of the global pandemic is that businesses that provide the basic necessities are always in demand. These can be hospitals, clinics, stores that sell cleaning products, and especially grocery stores and supermarkets. Getting your daily essentials for your home and all the ingredients you need to cook have been more than emphasized during these times. Besides that, a grocery business provides numerous benefits to investors, especially in a long-term perspective.

To know if you should invest in a grocery store now, Here’s a list of advantages that this business provides. Continue reading below!

Grocery stores are always in demand

Nothing is more important than having basic necessities for people, which was emphasized during the pandemic since a lot of people stayed mostly at home. Grocery stores help provide these necessities plus household items that can help around the house or things like junk food that people generally buy for fun. 

Now, while the pandemic and its effects are far from over, it’s expected that grocery stores will remain in demand. Considering it provides convenience for residents that live close to it, a business like this is a stable investment since it will always be in demand. 

If you’re looking for your own grocery business, IPS Cambodia has numerous commercial business listings like this grocery business for sale located in Old Market in Siem Reap. Make sure to send your inquiry so an IPS agent contacts you quickly!

It’s a resilient business

Other commercial businesses like restaurants or hotels usually have high demand, but demand can struggle depending on the economic situation. This isn’t the case with grocery stores since it’s proven to survive economic downfalls, primarily due to its unique characteristics as a business and what it means for its customers, as you can see below:

  • Perishable items: Since numerous items sold at grocery stores like meat, pastries, and more are perishable, it should be consumed quickly. In this way, since there’s an expiration to when they can be eaten or used, people would need to pick up these items every few weeks, which contributes to the resilience and demand of grocery stores.
  • Routine: Considering that fresh food and other necessities are always needed to keep a healthy household, going to the grocery store every week or two has become routine for most people. This is not the case for other commercial businesses like restaurants, where people do not need to include it in their weekly or monthly routine.
  • Individual preferences of customers: One of the best characteristics of grocery stores is that it sells many items and ingredients, catering to different individual preferences of its customers. In this way, it has a bigger and more diverse customer base than other businesses.

How much do grocery investors make?

A large capital is needed when you first invest in a grocery business, considering you either have to buy your own business or look for your own location to launch the store. After that, you have to get the necessary permits if you don’t already have it, and then all the products your store would need for the convenience of future customers. Besides products and utilities, you also have to consider the cost of hiring manpower to make it easier for you to run the grocery business smoothly.

Once all of this has been considered, the average profit of grocery investors amounts to 1% to 2%. While this seems low, say if your store makes roughly $150,000 weekly, with a 2% profit, you take home $30,000. The profit margin could also be increased to 5% to 12% if your store becomes more successful in the long run.


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