How Much Does It Cost to Open a Shoe Store?

You need a minimum of $187,980 to open a medium-scale shoe retail shop business in any city in the United States of America.

Opening a shoe store like any other new business comes with its own fair of challenges, but apart from the challenges you will be confronted with if you set out to open a shoe store, you should also be ready to handle some of the key factors that can influence how much it will cost you to open your shoe store business.

Estimated Cost Breakdown to Open a Shoe Retail Shop

When it comes to starting a standard shoe retail store, one is expected to spend the bulk of the startup capital on renting a storage facility.

Aside from that, you are not expected to spend much except for purchasing a wide range of shoes depending on your niche area, paying your employees, and utility bills. These are the key areas where you will spend your startup capital on;

1. The total fee for registering a business in the United States of America – $750.
2. Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $3,300.
3. Marketing promotion expenses for the grand opening of the shoe retail shop in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
4. The total cost for hiring a business consultant including writing a business plan – $2,500.
5. The total cost for the purchase of insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $2,400.
6. The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of $35,600.
7. The cost for shop remodeling (construction of racks and shelves) for the showroom – $20,000.
8. Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
9. The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
10. The cost for start-up inventory (stocking with a wide range of different sizes and brands of men’s shoes, women’s shoes, men’s athletic shoes, women’s athletic shoes, children’s shoes, slippers, and other types of shoes such as Hosiery and sports footwear, golf shoes, bowling shoes and cleats et al and other related merchandise) – $60,000
11. The cost for store equipment (cash register, security, ventilation, signage) – $4,750
12. The cost of purchase and installation of CCTVs: $2,500
13. The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound systems, tables and chairs et al): $4,000.
14. The cost of launching a website: $600
15. The cost for our opening party: $3,000
16. Miscellaneous: $2,000

Total – $187,980

Please note that this is a rough estimate and we usually advise our readers who are interested in opening a shoe retail shop to go to the market or directly contact distributors and wholesalers of the types of shoes they want to retail in order to get the real-time wholesale prices of these items.

The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.

Factors That Determine the Cost of Opening a Shoe Store

1. The Type of Shoe Store Business

Anyone who wants to open a shoe store can decide to start the business from a kiosk, makeshift shop, online shoe store, or standard shop facility and the cost will be different.

The truth is that it is far cheaper to open an online shoe store, or from a kiosk or makeshift facility than starting the business from a shop facility. The cost of renting and equipping a shop facility does not come cheap.

2. The Location Where You Want to Start the Business

In the United States of America, some cities are pretty expensive to start and run a business, while others are quite cheap in this regard.

If perchance you settle for a city that is expensive to run a business, then it will cost you more when compared to someone who chooses to start his or her shoe store in a city that is way cheaper to start and run a business.

3. The Cost of Equipping Your Shoe Store

If you have plans to start a standard shoe store, you will be required to equip the shop facility with the needed equipment, electronics, and furniture.

Aside from getting comfortable stools, tables, shelves et al, you will also need receipt-issuing machines, computers, and perhaps printers.

4. The Number of Staff You Want to Recruit

The only reason why this might not be an issue for you is if you choose to open your shoe store as a one-man business where you can handle all aspects of the business.

But, if you choose to open a standard shoe store, then you must make plans to recruit and train key employees. You should make plans to recruit a Manager, an Accountant or cashier, salesgirls, and salesboys.

5. The Cost of Obtaining the Needed Licenses and Permits

This cost may vary across different states and jurisdictions in the United States. The fact that different states require different types of licenses and permits means that your budget for permits and licenses will be determined by the state you want to open your shoe store.

As expected, you should budget for a general business license, seller’s permit, building permit, fire and safety permit, zonal permit, and signage permit amongst others.

6. Your Ongoing Expenses

Ongoing expenses for any business is unique to the business owner and their preferences. But basically, any entrepreneur who wants to open a shoe store should have a budget for ongoing expenses such as:

Utilities (electricity, water, gas), rent or mortgage payments, equipment maintenance, and repairs, insurance (liability, property), marketing and advertising costs, payroll for staff, permits and licenses, and any other miscellaneous expenses related to running the business.

7. Miscellaneous Expenses

Just like your ongoing expenditure, the amount you are expected to spend for your miscellaneous expenses is unique to you and the type of business model you want to operate.

Although there is no specific amount when it comes to miscellaneous expenses for a shoe store, an entrepreneur may decide to include the:

Cost of hiring and paying a business consultant and attorney, the cost of branding, promotion, and marketing of the shoe store, the cost for logistics,

The cost of the purchase and customizing of uniforms for your employees, and the cost of the grand opening of the shoe store as part of your miscellaneous expenses.