The grocery industry is one of the fastest growing industries in Dubai. With numerous grocery stores opening in the emirate, it seems like this sector is here to stay. While there is no doubt that grocery stores are profitable and can provide you a stable source of income, you should also be aware of the risks associated with starting a grocery business in Dubai. Before you jump in and start giving out flyers, getting your own website designed and advertising at malls to sell your products, it’s important to have an understanding of what your average monthly sales volume will be and some smart strategies on how you can make sure that this positive income stream remains sustainable for years to come by avoiding common mistakes most people make when starting up a grocery store.
How a Grocery Store is a Beneficial Business:
Grocery stores are one of the most important businesses to run in Dubai because it is an industry that is expanding rapidly. There are many benefits for running a grocery store in Dubai, and this article will explain them all.
- The first benefit of running a grocery store in Dubai is that there are so many people who need to buy food on a regular basis.
- The second benefit is that the city has such a high population growth rate that there will always be new customers for your business to attract.
- The third benefit is that there are many different types of households in Dubai, and each household has different needs when it comes to buying groceries. For example, some people want organic foods while others only want products containing preservatives or artificial colors or flavors. You can cater to these different needs by offering different products at different prices depending on how much you sell each type of product.
- The fourth benefit of running a grocery store in Dubai is that you can earn money from advertising with large companies like Coca-Cola etc.
Rules to Start a Grocery Business in Dubai?
Every business in Dubai needs to comply with the rules to avoid any penalties.
- Have a clear idea of your product, the price and your target market.
- Be reliable, honest and trustworthy; always keep promises and be polite.
- Never try to sell something you don’t have in stock or do not want to deliver on time.
- You need to have a strong financial base before starting any business venture in Dubai because it is not a cheap place to start from or operate from as it has high taxes and duties which need to be paid for by the business owner or owners depending on the level of income they earn from their business activity here in Dubai.
- Always make sure that you have enough money to run your business before starting it and if you don’t know what would be the cost of running your grocery business then follow the steps below:
- Start with a small scale grocery shop.
- Find a location that is not too crowded and has a good parking space.
- Evaluate the market for your shop, if there are many options in the area, then it would be better to start with an open air shop because it would be easier to market and advertise your business as compared to an enclosed one where you only have one option for customers to visit your shop.
- Create a logo which is eye-catching and easy to remember by potential customers so that they will remember your business name when they are looking around in the grocery store or supermarket they are planning to visit next time they go shopping at that particular place even if it’s not a company owned one but just someone else’s grocery store or supermarket.
- Make sure that there are no long queues of customers waiting at the checkout counter for payment or deliveries of items purchased from you since this will negatively affect your business in terms of sales because customers may get irritated if there is a long queue of customers.
10 Simple steps to Start a Grocery Business in Dubai
Starting a grocery business in Dubai is easy as long as you follow these steps carefully and precisely.
1) Create a business plan
When Starting a Business, you have to prepare a business plan. This is a document that outlines your goals, strategies and objectives. It should be written by someone who knows the market well and understands how to help you achieve your goals.
2) Get the necessary licenses and permits
When you are planning to start your own grocery store in Dubai, it is important to get the necessary licenses and permits from the concerned authorities. The basic requirement for starting a grocery store in Dubai is that you must have a license from the Ministry of Finance. If you want to start a private company, then you will need permission from the Ministry of Commerce and Industry.
3) Secure the location for your store
The first step in securing your location for a grocery store is to find the right location. The location should be easily accessible and have enough parking, but it should also be located in a residential area so that customers can walk to your store.
The second step is to secure the building. You will need to apply for an occupancy permit from the municipality and make sure that you have permission from all other parties involved with the property.
4) Train employees for the store
You also need to train employees for the store, so that they become familiar with all the procedures of running a grocery store.
5) Source the products for your grocery store
The first step is to source the products for your grocery store. You need to find suppliers who are willing to offer you quality products at competitive prices. The best way to get these suppliers is by meeting them personally or through their representatives. When you meet with the suppliers, you should ask them questions about their product offering and how they will supply it to you. You need to check if they have enough capacity and if they can deliver on time.
6) Get the products delivered to your store
Once you have cleared the space for your store, then you need to get the products delivered to your location. There are many ways through which deliveries can be made and it is dependent on the nature of business that you want to run. For example, if you are running a small grocery store then there is no need for delivery services as they would not be able to justify such expenses. But if you are planning on running a larger grocery chain then deliveries may be necessary as they will ensure faster sales and better customer satisfaction.
7) Stock the items on the shelves of your store
Once you have the products, you will need to stock them on the shelves of your store. This is where your supplier would come in handy as they will bring all the necessary items for stocking the shelves of your grocery store.
8) Determine prices for products in your store
You need to determine how much each item should cost at your grocery store so that you know what prices to charge for them later on. It’s important that you also consider factors such as how much space each item takes up on the shelf and whether it is seasonal or not (e.g., milk).
9) Install a point-of-sale system in your store
When you start a grocery business in Dubai, you will be required to install a Point of Sale (POS) system. With this, customers can pay for their purchases using debit or credit cards. You can also accept cash payments through the POS system.
10) Advertise your store online and offline
There are many ways of advertising your store and other services. You can use newspapers, magazines, flyers and direct mailers as well as radio ads. If you want to reach out to people on social media platforms like Facebook and Instagram, you can use these platforms for advertising your services. In addition to this, you can also use website banners on the website that has been created for your business.
How AIG is serving to setup a new business in Dubai
AIG provides services for all kinds of businesses such as setting up companies, incorporation, VAT Registration and also provide other services like accounting and financial advisory to businesses in Dubai.
AIG has an excellent team of professionals who are committed to provide you with the best possible service that can be delivered to your company. They have a team of qualified people who will guide you through every step of the process so that there is no need for you to worry about anything at all because they will take care of everything for you.
As the nations, Dubai is one of the largest in the Middle East and famous for its shopping industry. There are many fresh companies, who willing to open or planning to expand the business in Dubai. They want to know about the license and regulation for opening grocery store. Usually, there is not any restriction for getting the license in Dubai and you can start grocery store there with different type of product in different area.