Failing

[Sambo]

We bought a tiny gift shop in July last year. The summer wasnt too great, December for Christmas was good...but now it's completly dead. We aren't even making £200 a week and every month £600 goes out for rent, so that's like £200 for wages and new stock each month. Without stock, we won't get any money in.

I'm scared we are going to have to give up the shop. We've got a 5 year lease though

[TWD-Tony]

You need to seriously sit down and see where your business is going...
I am no expert but I would suggest either a major advertising push or maybe a change of business strategy (change or expand product ranges for example).
Or...
If you think all is lost and you WANT to get out then maybe you can resell the lease on?

[Sambo]

I have thought of completly changing the shop so we aren't a gift shop, but a baby goods shop. The only thing is, we haven't got the money to do that. The only way to get the money, is for the stock to sell, which it isnt doing. Even with 25% off things, they arent going.

[evej13]

How old is the shop and how was it doing last summer? If it was doing better last summer, why? What's changed? What have you done to market your shop?

If it wasn't doing better last season, could this be it's normal lull?

Good luck,
Eve

[Sambo]

Originally Posted by evej13

How old is the shop and how was it doing last summer? If it was doing better last summer, why? What's changed? What have you done to market your shop?

If it wasn't doing better last season, could this be it's normal lull?

Good luck,
Eve

We have only had the shop since July and to be honest, it's never been brilliant. It was supposed to do £150 a day...we are lucky if we get £200 a week. In the summer we got a maximum of £700 for a couple of weeks.

[BowBiz]

Hi Sambo.

Where is your shop and exactly what does it sell? If you give us a few more details, we may be able to come up with some good ideas to help. PM me if you don't want to put it on here.

Jayne

[Sambo]

Our shop is in the high street of a small riverside town. There is only the one road going through with all the shops on. There are about 3 other gift shops. We are tiny and sell:

Dolls house furniture
Teddies (including a few Steiff)
Model Boats (like the small ornament type things)
Costume Jewellery
Crystals
Souvenirs
Greeting Cards, Gift Wrap and Gift Bags

And now baby clothes

[evej13]

Did you check the financials before you bought it? Was it really doing 150 pounds a day? (sorry I don't have the symbol for British Pounds).

If it was, something has changed. Were the previous owners using some marketing strategies you don't know about? Do you know what they were doing to market it?

Eve

[peterjhale]

what do the other shops sell ? what sells well in their shops? Do people always come out with a bag full of goodies from their shops?

Do some competitor research

[globalart4u]

these are very specialised products. where do you advertise? do you have an online site too? Who are you targetting to? What are the demographics in your area? what do the other gift shops sell? why change to baby goods?