She also negotiated free rent for the first few months, and had the landlord deliver the store space in “a vanilla shell”-ready for paint, dressing rooms, and finishes. Negotiate rent: Instead of signing a ten-year lease, Sloane signed a five-year lease with another five-year option for added flexibility.

Total rent and operating expenses: $19,200.✔ Utilities, such as electricity, gas, phone, internet, water, sewer bills: $600.✔ First month’s rent, last month’s rent and security deposit: $18,600.“The lease is the most critical component of your business plan and the biggest fixed expense.” Every store is different, but if you keep her recommendations in mind, you won’t find yourself blind-sided by unexpected start-up costs. Calculate your retail startup costs with this calculator Key cost considerations when opening a retail storeīelow you’ll find Sloan’s top five cost considerations. In the case of Uptown Cheapskate, its custom, branded hangers cost $10,000 to display 20,000 clothing pieces.Īs a guide to help prospective store owners understand how much it costs to open a retail store, Sloane shares with us the cost estimates of her upcoming brick-and-mortar launch in State College, Pennsylvania, and what to take into account in our retail calculator below. There are hidden costs you need to take note of when opening your retail store.įor example, a hard-tag security sensor system is a must-have for clothing stores and costs almost $6,000 to set up, according to Sloan. “The first six to 12 months are hard, and even if your books are saying you’re profitable, cash flow is a different matter,” says Sloan. Prior to opening a new store, owners should be aware of rising construction costs and ensure they are adequately capitalized, warns Sloan.

Building a mall cost