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Looking for Good Business Ideas? Why Not Try a Supermarket Business?

Looking for Good Business Ideas? Why Not Try a Supermarket Business?


The supermarket plays a crucial role in sustaining the daily needs of people; it has a huge impact, not just in the local community, but on the economy in general. According to the Australian Food and Grocery Council: “Australia’s $119 billion food and grocery processing sector is a vital contributor to the wealth and health of our nation. The industry produces safe, nutritious food, and other essentials of life for every Australian every day.” Now, if you are an investor who’s searching for good business ideas, then perhaps it’s time to take a long, hard look at the supermarket industry.

Here are seven good reasons why you should start considering getting your own supermarket business:

  1. Good Source of Steady Revenue

A trip to the supermarket is an inherent part of most people’s routine. At least once a week or twice a month, people visit the supermarket to replenish their household and food supplies. Its wide range of selection facilities and relatively low prices seem more attractive than, say, a specialised department store.

As a result, it’s fairly easy for a supermarket business to attract a steady stream of customers. However, you cannot simply bank on this innate characteristic of a supermarket. Location, pricing, and service, among many others, will also greatly affect your business’ profitability, and, therefore, should be studied carefully. For example, you can opt for a location that has little to zero competition, but is still strategic enough to be within close proximity of a residential area or a commercial district.

  1. Dynamic and Evolving Industry

Supermarkets first appeared in the US during the great depression. At that time, people go to them mainly to just buy food, milk, meat, fruits, and vegetables. Now, products offered in supermarkets have become more diverse – household supplies, electronics, cosmetics, clothes, etc. Advancement in technology has also given birth to new trends such as online shopping, grocery and delivery applications, etc.

According to the Weekly Times Now, “The development of sophisticated online sale options, including phone and tablet options, is expected to further increase supermarket sales. With these functions also come convenient alternative pick-up and home delivery options, further attracting clients to use these supermarkets.” With this in mind, you know that there’s a lot of room for growth and innovation should you decide to have your own supermarket.

  1. Negotiating Power and Financing Perks 

In the supermarket business, suppliers basically “pay” for shelf-space while the owner provides and manages the space and labour.  Suppliers can be flexible when it comes to the payment terms for their goods. As a large to medium scale retail establishment, you will be able to enjoy substantial negotiating power brought about by this flexibility.

You may also be offered volume discounts, promotional levies and promotional slots as well as fees for preferred shelf-positioning. Sometimes, you get additional items as discounts from the invoice price. With these various options available to you, your supermarket will be able to sell your items more rapidly at a cheaper price, resulting in higher profit.

  1. Stable Costs

If you’re looking for good business ideas with relatively low and fixed operating costs, then a supermarket should definitely be considered. The fixed costs refer, but are not limited, to: retail space, infrastructure and labour. A study conducted by the Australian Commission on Productivity (ACP) claims that the largest cost drivers are labour, occupancy, and freight. Other expenses include utilities, financial services, warehousing, and distribution. Although some retailers have noticed fluctuation in costs over time, ACP further maintains that “profit margins have been relatively stable for the past two decades. To some extent, overall productivity has been protected by falls in the cost of imported goods sold.”

  1. Wide Range of Marketing Strategies  

Once a supermarket owner has made decisions regarding pricing, location, services, and administrative matters, the next concern that should be addressed is how to acquire the biggest market share possible. The good news is that there are plenty of potent strategies being used in the industry which you can include in your supermarket’s marketing arsenal.

Customer loyalty cards, free samples, and personalised greetings are just some of the promotional initiatives you can leverage on.  Interestingly, a number of these strategies also have behavioral, social, and psychological bases which are used to subliminally entice customers to purchase more than they initially intended to. Essentially, keeping abreast with the latest market trends and strategies and knowing the right time to apply them will let you maximise your supermarket’s full potential.

  1. Opportunity to Build a Loyal Customer Base While Serving the Community 

A supermarket is not just a profit-generating establishment, it is also an integral part of a neighborhood’s way of life. This especially holds true if the community is tight-knit. Operating a supermarket gives you the chance to serve the community you are in by providing basic commodities and goods. This, in turn, helps your business gain a loyal customer base which you can nurture over time.

  1. Opportunity to Fulfill Lifestyle Aspirations 

If you’re an employee making the transition to become an entrepreneur, owning a supermarket business might just be a dream come true. Managing a supermarket in a location where you have always wanted to settle, allows you to carry out your lifestyle aspirations. For instance, if surfing is your passion and you’ve struggled with finding the time to juggle work and surfing, running a supermarket business in a coastal town will give you more freedom to pursue this passion. There’s a myriad of business opportunities you can explore and it’s up to you to choose the one that best fits your lifestyle goals.


If you’re looking for good business ideas that are relatively stable, have potential for growth, and can attract a steady flow of customers, then a supermarket business deserves to be on top of your list. According to Ronald Simmons, a journalist for Chron News, “supermarkets enjoy some of the most stable revenue streams of all business types because, while various consumer tastes and trends fluctuate, the demand for groceries and household items remain fairly constant.”
There are plenty of business opportunities in the industry right now. But if you think owning a supermarket is the best investment for the kind of budget and lifestyle you have, we’d be happy to walk you through your options. Sign up for a FREE Buyer’s Consultation and we’ll help you get started on your new business endeavour.