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Following the successful establishment of this pilot business, for the longer term the proprietor is considering commencing a franchise operation that will expand into other rural locations throughout the UK and Ireland.
The advantage of the former is that, with its low level access, it will allow elderly shoppers to board and browse.
The smaller vehicle will be operated on the basis of the consumer having their requirements served personally by the vehicle operators, and will be better able to service the more remote locations where accessibility would be difficult for the larger vehicle.
To enable the business to operate on the basis of offering competitive prices, it is the intention of the proprietor to develop a partnership relationship with an existing grocery distribution or retailing brand so that the business will gain low cost competitive advantage from the economies of scale that partner can offer.
The will enhance the ability of the business to deliver consumer satisfaction and at the same time assist in the development of a loyal customer relationship.
In addition, if the product range is to include alcoholic, tobacco and other legally controlled products, the relevant licences will need to be applied for.
Latest statistics show that the numbers of local and convenience stores, particular those that are independent, are continuing to decline, and there is little sign of this situation being reversed within the foreseeable future.However, a detailed financial plan has been constructed and is attached within the appendices at the end of this plan.This shows that the business requires funding of £X, XXX, XXX to complete its programme.Business Plan Executive Summary Section 2 – Business Summary 2.1. NWMG will operate two mobile shops offering convenience store shopping close to the homes of those who live in the rural areas of North Wales that are not adequately serviced by local stores. This means consumers in many of the rural areas of Wales are finding themselves having to travel further afield for their basic grocery shopping requirements, which can present difficulties, particular for the older age segment and those in single families or with busy lifestyle.To facilitate the attractiveness of the investment, it is intended to set the business up as a limited company, which will provide the investor with formal shares, which will pay out dividends as well as having the potential for capital gain return.In terms of legal requirements, the owners are aware that the business will need to comply with all the health and safety regulations relating to food retailing.Furthermore, the small price differential between our products and those offered by distant stores will be more than offset by the cost saving of the travel involved.As this is a new business, there is no financial background to rely upon.The statistics also show that the position in respect of independent stores is being exacerbated by the increase in the share that supermarkets and multiples are taking of the convenience retailing market.For example, Tesco now has a 6% share of the convenience store market.