Do you want to start a profitable retail business? Find here a list of 50 most profitable retail business ideas for your ready reference.
If you are an absolute beginner, then starting a retail business is always a better alternative than manufacturing. Additionally, a successful retail business ensures regular cash flow from the first day of operation.
Basically, a retail store sells the product directly to the end consumers. Therefore, a location plays the most important role in the success of a retail business.
Currently, the global retail market is growing very fast. And definitely, there are some reasons behind this growth. The list includes rising GDP growth, burgeoning population, greater disposable income, and increasing consumer spending.
Basically, the retail industry comprises establishments engaged in selling merchandise or commodities for personal or household consumption. Mainly, it consists apparel and accessories, technology, food and beverages, home improvement, specialty, pharmaceuticals, and others. Recently, as developed nations begin to emerge from recession, their economies recover, and unemployment rates begin to fall, the market segments are experiencing some renewed growth.
Recently, as developed nations begin to emerge from recession, their economies recover, and unemployment rates begin to fall, the market segments are experiencing some renewed growth. Hence, it is the right time to start a retail business of your own.
List of 50 Profitable Retail Business Ideas
#1. Alter Shop
If you enjoy sewing and making the outfits most perfect for others, you can consider this business. Basically, an alter shop is an evergreen business. Additionally, the business demands very small capital investment. Even, you can start with a 100 Sq Ft retail space.
#2. Apparel Boutique
This is one of the most trending business both in the developed and developing countries. Basically, apparel boutique offers designer garments and several accessories items with unique designs. However, you must have some design sense and fashion expertise in starting this business.
#3. Aquarium House
probably, fishes are the most beautiful pet. Nowadays, people keep and maintain the aquarium beautification also. If you love caring fishes and decorating aquariums, you can start this business with small capital investment.
#4. Auto Parts Shop
Actually, you can start an auto parts shop business in both rural and city areas. Even, the business is perfect for small towns. Basically, the auto parts industry caters a wide range of subcategories. It includes two wheeler, four wheeler, construction vehicles etc. However, it is advisable you focus on a specific niche.
#5. Barber Shop
Initiating a barber shop is a financially lucrative business. And you can earn handsome profit from a store. However, the overall success of the business highly depends on the location, store amenities and efficient manpower.
#6. Bar with Restaurant
Bar with a restaurant is one of the most profitable food retail businesses nowadays. However, the business demands moderate to high capital investment. Additionally, you must conduct a market research before initiating the business.
#7. Beauty Salon
If you want to start a business in the beauty industry, then you can consider starting a beauty salon business. Additionally, the business offers several niche opportunities to the owners. Also, the business is very suitable for the women entrepreneurs.
#8. Book Store
A bookstore is one of the most profitable retail business in the education industry. Additionally, you can sell the other items like the copy, pen pencil, erasers and other stationery items from the same store. Depending on your investment capacity, fix the business model and size.
#9. Butcher Shop
Starting a small butcher shop is an ideal business in both the small towns and metro cities. From the shop, you can sell different types of animal protein items like chicken, mutton etc. However, obtaining registration, and maintaining the hygiene properly are important.
#10. Cake Shop
Basically, starting a cake shop is a lucrative food retail business. The business is easy to start and manage. Additionally, the cake retailing business is perfect for women entrepreneurs too. Any individual can start this business by taking a minimum risk (finance).
#11. Coffee Shop
Basically, people consider coffee shop as a third most comfortable destination after home and office. In addition, the coffee shop is an ideal destination for having chat with friends relatives and even clients and colleagues. Therefore, the demand for the coffee shops is increasing very fast.
#12. Convenience Store
Basically, starting a convenience store is one of the easiest business to start. Actually, a convenience store keeps and sells a range of everyday items. The list may include groceries, snack foods, confectionery, soft drinks, tobacco products, over-the-counter drugs, toiletries, newspapers, and magazines.
#13. Cosmetics Shop
The use of cosmetics is increasing very fast globally. It is not only women, men are also very much conscious about looks. Hence, you can consider starting a cosmetics store at your location with a range of items. You can keep both the chemical and organic items to address the bigger audience.
#14. Craft Store
People always love to buy utility and gift items from the craft stores. Because craft stores offer unique and innovative products to the clients. You can procure the products from the home-based craftsmen of your area and sell them from your store.
#15. Crockery Store
This is another profitable business you can start both in the small towns and metro cities. However, select the location carefully. And keep the right product according to the taste and requirements of your local consumers.
#16. Departmental Store
Basically, departmental stores offer a wide range of products in different product categories. The category list includes clothing, furniture, home appliances, toys, cosmetics, houseware, gardening, toiletries, sporting goods etc. It also caters food, books, jewelry, electronics, stationery, photographic equipment, baby products etc.
#17. Dollar Store
Basically, dollar stores or discount stores are very popular throughout the globe. However, there is stiff competition and the business demands huge startup investment. Additionally, you will need to procure quality product from the manufacturers to get the decent profit.
#18. Electrical & Electronics Store
This is another great sector to invest. Additionally, the electrical and electronics segment offers a wide range of business models. Also, you can start with only lighting or electrification equipment etc. However, craft a detailed business plan before commencing the business.
#19. Embroidery Unit
If you have embroidery designing skill, you can open an embroidery unit. However, you will need to procure the stitching machines, threads and other tools for running the unit. Also, you can start the business from home or a retail location.
#20. Eye Accessories Store
This is an emerging business these days. Additionally, technology is upgrading every day. You can start an eye accessories store with spectacles, lenses, and frames. If you don’t have any prior experience, you can start with a franchise also.
#21. Fabric Store
Actually, fabric store is a traditional retail business. Additionally, the business is easy to start and operate. You can keep the stock of fabrics according to the local market demand. However, the business demands substantial capital investment in creating the inventory stock.
#22. Fast Food Restaurant
A small scale fast food restaurant is a profitable business. Depending upon your investment capacity, you can keep it small and simple or large. However, this business is not so easy. You must conduct an intensive market research and craft a business plan before commencing the business. additionally, select the menu and tariff very carefully.
The florist is actually a retail flower shop. You can sell loose flowers, bouquet, ornamental plants etc. Additionally, you can take orders for decorating gates or occasion venues. The business profitable if you can source the fresh flowers in a right way. Additionally, you must have a good storage system for keeping the flowers fresh.
#24. Food Truck
Basically, the food truck is a moving restaurant. Sometimes the business is more profitable even from a restaurant. With some ready eat and cook foods, you can roam around the busy areas in the working hours. However, the business demands moderate capital investment and licensing from the Govt. authority.
#25. Fuel Station/Petrol Pump
If you want to start a business in the oil and gas industry, you can consider starting a fuel station or petrol pump business. In starting a petrol pump, you must have a large space at a prime location. You can also sell other utility items from the fuel station. Sometimes, fuel stations run a coffee shop or restaurant also.
#26. Furniture Retailing
Furniture retailing is also a very profitable retail business to start. Any individual can start this business even with small capital investment. You don’t need to produce furniture. There are several furniture manufacturing companies who offer a good retail commission to the furniture retailers. Also, you can sell both the branded and non-branded furniture from your shop.
#27. Gift Shop
Gift shops sell a wide range of items. The list includes greetings card, home decor items, crafts items, accessories etc. However, selecting the right niche and addressing them with right product is crucial in getting the success in gift shop business. Additionally, location plays a very important role in gift shop business.
If you enjoy work out and have the specific knowledge, you can start a gym. In starting, you can open the gym at your home also to keeping the startup cost low. However, a commercial retail operation ensures better profitability. The business demands moderate capital investment.
#29. Hair Cutting Salon
In the beauty industry, a simple hair cutting solon can ensure good ROI. Additionally, for starting a hair salon business, you don’t need to be a beauty expert. Even, if you don’t have any prior experience, you can start the business after attending a hair cutting training session. Additionally, you can open the salon with a comparatively small retail space.
#30. Home Appliances Store
This is one of the most trending business in the large retail segment. Definitely, the business demands large capital investment for procuring stocks, manpower, and space. Basically, home appliances stores sell, TV, Refrigerator, oven, kitchen appliances etc.
#31. Home Furnishing Store
These days, home furnishing is a multi-million dollar industry. And if you have the knowledge about different fabrics, colors, and patterns, you can start a home furnishing store of your own. Basically, home furnishing stores sell different types of bed sheets, bed covers, curtains, pillows, cushions, mats, carpets etc.
#32. Ice Cream Parlor
Ice cream one of the most popular food items among the every age group of people. Apart from opening your own brand, you can consider starting a franchise. There are several reputed brands you can find who offers the franchise for selective locations.
#33. Kids Store
You can open a kids store as small medium and also as a large store. Nowadays, kids stores sell a wide range of products. The list includes garments, accessories, toys, shoes, kids home decor items, books, CDs, educational stationery etc. However, you must concentrate on a specific age group and keep the materials of good quality.
#34. Laundry with Dry Clean
basically, laundry with dry clean is a recession-proof business. And if you want to start the business as small-scale, concentrate on marketing and promotion. Even, you can outsource the cleaning work. Also, you can consider starting the business as a dry clean franchise of a reputed brand.
#35. Leather Fashion
If you want to start a high-value business in the fashion industry, you can consider opening a leather fashion store. Actually, leather fashion stores sell the leather made fashion apparels. The list may include leather jackets, gloves, bags, and other utility items.
#36. Live Bakery
Basically, the live bakery is a new concept of the traditional bakery. Here, you will operate the entire operation live in front of the customers. The customer can see the cake baking and packaging system live. However, the business demands adequate retail space and substantial capital investment.
#37. Maternity Clothing Store
This is also a great retail business that attracts a specific niche audience. Additionally, if you want to tap into an existing brand name and a proven system, you can consider a franchise. It is advisable that you conduct a market research and craft a detailed business plan before commencing the business.
#38. Medicine Shop/Pharmacy
If you have an education background in chemistry, you can open a medicine shop or pharmacy. Study the existing competition and check the licensing issues in your locality. Also, you can promote your retail medicine store online from a small eCommerce store of your own.
Basically, a microbrewery sells craft beers of different tastes and flavors. Additionally, you can sell different types of snacks and main course food items too. The business demands substantial capital investment and strategic marketing planning.
#40. Mobile Store
A multi-brand mobile store is a profitable business in both the developed and developing countries. In the today’s era of internet, the demand for different types of smartphones and feature phones and increasing very fast. Also, you can sell different types of mobile accessories from your store.
#41. Nail Art Shop
This is an another emerging business in the beauty industry. Righ from nail painting and decorating, the nail art industry is booming now. Additionally, you can start this business with a small retail space. However, a mall kiosk or shop-in-shop is the best location for starting a nail art shop business.
#42. Pearl Jewellery Store
If you want to start a jewelry store, you can consider pearl jewelry, Basically, pearls are semi-precious items. Additionally, the pearls come in different colors and shapes. Some of the most popular items are bangles, necklace, earrings etc. Also, you can consider starting a pearl jewelry store as a franchise.
#43. Perfume Store
Do you enjoy different types of fragrances? If yes, you can start a perfume store with moderate capital investment. Actually, perfume is a luxury item and you will need to conduct a thorough market research before commencing the business. Generally, a mall kiosk operation works best in perfume retailing business.
#44. Pet Store
A pet store is a very lucrative business basically for the pet lovers. First of all, try to configure the pet population of your locality and judge the potential competition. Generally, a pet store sells a wide range of products related to pets. The list includes food, clothing, accessories, skin care products, grooming items etc.
#45. Plant Nursery
A backyard plant nursery is a profitable business for any individual. If you have the hobby of gardening, you can transfer your hobby into a profitable venture. Additionally, the low infrastructure cost makes the business revenue-wise more lucrative. Furthermore, you can start this business not only in the metro cities but also in the small towns.
#46. Shoe Laundry
Shoe laundry business includes the services of collecting shoes, getting them cleaned and repaired if required, making delivery the shoes at client’s doorsteps and getting the payments. Additionally, you can offer different services like cleaning, washing, repairs, color correction, maintenance services, footwear restoration etc.
#47. Sports Shop
If you are passionate about games and sports, you can start a sports shop business with moderate capital investment. However, identifying the specific niche is one of the most crucial aspects when you are starting small. It is better to conduct a market research prior to understanding the specific demand in your locality.
#48. Sweets & Snack Store
A small sweets and snacks store business is very much profitable and lucrative opportunity for the first generation entrepreneurs. Generally, this type of stores sell fresh sweets and snacks to the retail consumers. And most of the traditional shopkeepers produce the products of their own. Also, the business is profitable in the small towns.
#49. Thrift Store
Basically, thrift store sells second hand and used materials. The location is a very crucial aspect of starting a thrift store business. You must select a location that enjoys huge footfalls. Additionally, the procurement of the right product in right price is highly important.
#50. Vape Shop
If you stay in a tourist location or metro cities, you can open a vape shop there. However, the business demands licenses and permissions from the Govt. authority. Before you start a vapor shop, there are two things you absolutely must know about your local market. First, you need an intimate understanding of what people pay for tobacco cigarettes. Second, you need to know whether any dedicated vapor shops already exist in your area.
#51. Vending Machine
This is one of the most simple business to start in the retail industry. And definitely, you don’t need to obtain any retail space for starting this business. However, you need to have good vending machines for specific products. Locate a good vending location and talk to the owner to keep your machine out there. You can also offer a percentage of profits to the owner.
So, these are the most profitable retail business you can start with small capital investment. We hope the list of retail business ideas is enough inspiring for starting a small retail business of your own.