Grocery Shop Project Report



If you are going to open your Kirana store then our grocery shop project report will be of good help to you. You need to study a complete report to know how much and where to invest in this business. The grocery shop business is operated in every city and town of India. They too have the scope of selling their products online. You can start this business by offering a wide range of beverages and food items at the beginning.

The main focus of a seller should lie in the development of innovative and latest strategies which they can use to promote their business and make it a success. The main goal of your business should be to develop the identity of the owner and the store as well.

The customers should go satisfied with your grocery shop so that they can visit you again and again. It increases customer loyalty and helps you face competition in the market. Thus you should wisely plan your grocery shop to provide the latest and most exciting services to your precious customers.

If you plan to set up your grocery store after studying our grocery store business plan I assure you will enjoy excellent profitability and high growth. Our discussion on technology, retail items and publicity campaigns will help you retail your perishable and non-perishable items easily.

Grocery Shop Project Report

Well, then it’s a good time to start a Kirana or grocery store. It is a business that is in evergreen demand. All other businesses may shut but a grocery store that provides basic food items only can also keep running. The demand for food ingredients and items will never come to an end in India.


In India, the population is increasing day by day, and the majority have functional purchasing capacity, so it’s good to open a grocery store and take advantage of such conditions.

With this new age group and increasing money spending capacity. Now people want some comforts like modern retail format stores equipped with AC. People like the grocery shop that provides them with all consumer goods (like their daily needs) in one place, stacking properly on shelves with rate tags present on top, more cleanliness and salesperson present to attend them.

Therefore, if you are thinking of starting a business, then opening a Kirana retail business store is a good idea as you can get a very handsome profit and get good returns with small investments.

If you want to take a loan for a grocery business, then you can avail our services. Our experts can prepare and give the best project report of the grocery store for you so that you can take advantage of bank loans, Mudra, PMEGP and other government schemes.

Kirana Store Business Plan 

A clear project report of Kirana Shop is crucial for your success as an entrepreneur. You wish to contemplate some important points in your report, like your initial costs, your target market, and how long it’ll see you interrupt even. Draft a proper Kirana Shop project report that describes your expected income, product and repair lines, expansion plans, and other details of your business. A well-drafted project report will facilitate you in applying for any bank loan.

Objectives Of Grocery Stores in India

  • The first and foremost objective is to obtain the necessary funding. Thus your grocery shop project report should have a good proposal to help you arrange funds from the bank.
  • Your grocery shop must soon become a well-established and recognized destination for all your customers. It should have all the items from basic needs to household.
  • You must try to make your annual turnover rise above Rs 4 Lakh and more.
  • The tendency of your grocery shop should be to hire staff at least of 5 people for your departmental store.
  • As soon as the business starts growing, you must tend to repay the debt of the bank so that you can either refinance your store or get tension free by repaying the complete debt.
  • You must also set up a budget for advertising for your grocery store business plan.

Factors Affecting Grocery Shop

Factors affecting Kirana’s shop business include living standards, product preference, area location, urban and rural area, and how much, and how often customers buy things.

The above factors affect your grocery retailing business and help you to understand your success rate in the industry. At starting, understanding the customer retail needs and requirements, and finding out how your competitors are operating in the organized retailing and unorganized sector market, their strategies, their advertising policies, and the customer’s response towards your store products as compared to competitors are crucial.

Kirana Shop is a low-margin business, and making mistakes in inventory leads to zero profit in this work. Make sure you have a good network with dealers as the packed products last only for 20-25 days.

Kirana Shop Business Target Market

Your primary target area should be around 1 or 2 kilometres. You should have all the products in your store that fulfil all the daily requirements of the customers while setting up the business. Your target group of the market is the neighbourhood area, so it is advisable to choose the centre place of locality with mixed customers, i.e., of all age groups.

Suitable location For Grocery Store In India

The prime location for your Kirana stores is near a residential area, within reach of customers of every age group like not present on the first or upper floor and flexibility in opening times of your shop.

Retail Shop will help you to get income as so many people approach your Kirana store. Also, new age groups spend a lot of money if stores are nearby their place and provide new technology like digital marketing, AC, etc.

Your General store project plan is preparing for setup now, decide how much you can spend at the start, and this all depends on factors like location, rent, the inventory you buy and the staff or salesperson you hire. 

Setting up small-scale stores costs around Rs 50,000, but if you try to open in some central location or any mall, you have to invest around Rs 2 lakhs or more or any problem with money then you can take a loan from banks in a natural way. In this kind of setup, you also need furniture like racks and tables to display your products to make them more appropriate for customers.

It is beneficial to keep stores neat and clean as this attracts more customers. Prepare a proper list of inventory and products sold; keep watching your cash flow and maintain every stock. 

What are the Licences and Legal Formalities for Grocery Store Business Plan?

To set up a grocery store, hire a CA, or contact for proper guidance and understand all legal formalities. To set up Kirana stores, this is an essential requirement or mandatory like legal formalities and license, including entity registration, avail active shop act service, FSSAI service, and GST service.

What is the Products Pricing Strategy In A General Store in India?

Before starting up, always set the right prices, which attracts customers to buy products more and more, this helps you make quick profits, and you efficiently manage your extra expenses. You can choose the markup(Cost based) or Margin (Selling price-based) method for pricing and make a good profit. This also affects on revenue and profit of your Kirana stores.

It is advisable not to offer low prices as you cannot keep a vast inventory. Still, if you provide excellent services and everything available to customers nearby, you get good profits. Generally, Kirana stores have 25% to 40% margins.

Which Products Should I sell at my grocery shop to earn good money?

In your grocery shop, you must sell all the products of convenience for human beings. You must lay special emphasis on size, quantity, quality, etc. You can sell several items in your grocery store like spices, soft drinks, tea, coffee, ketchup, hair oil, mustard oil, ghee, paneer, pulses, ready-to-cook foods, cheese, butter, snacks, sugar and gram flour etc.

If you want to keep more than this in your store then you can sell corn flour, wheat flour, multi-grain flour, mustard seeds, etc.

What is the minimum requirement of staff in a Grocery Store In India?

Now after setting up all, staff hiring starts which depends on your store size. Whether one or two-person required or one person per square foot. Staff members must be knowledgeable about products, well trained, motivated, trustworthy, alert and efficiently handle a large crowd of people without any disturbance.

Is GST Registration Compulsory For General Store?

GST registration is a must before starting Kirana stores in India and is also helpful while paying taxes. A 15-digit code number called GSTIN a shopkeeper received and certification are mandatory if your annual turnover increases Rs 40 lakhs while on the other side if less than it is not as compulsory.

Generally, Non-GST companies are avoided today, as this leads to tax violations. Better to follow tax rules for better stability in your business.

FSSAI Registration For Departmental Store

FSSAI license is mandatory for those starting this type of business in India. This ensures that you maintain hygiene and have standard operating procedures maintained at manufacturing and processing and at selling shops. This builds up a suitable trust among customers, and they are satisfied during purchasing.

How To Start online Selling Of Grocery Items?

These days digital business has a good impact on everyone as online purchasing is more comfortable. For this, you need to prepare an online website for your Kirana store. You can also register yourself with online selling apps like meesho or flipcart and sell your grocery in abundance anywhere in the country. 

Online payment methods like Paytm, credit card, phone payments, and other digital payment methods. Make products readily available to millions of retail customers. These days customers feel happier having this type of facility.

How Do attract customers For Grocery stores?

Advertising is very much essential to attract customers in the retail sector. For this, your family members, relatives, and friends help you by explaining individually to others, or you say during ‘GUPSHUP’. Try to make customer relationships as this is the best advertisement policy for Kirana stores. Initially, you can set some offers scheme to lure more customers. The customers will start buying items from your store and then will bring permanent clients. 

If you have vast stores, retail chains, and no financial problems, go to the media like TV, pamphlets, newspapers, hoardings, etc. Also, take the help of a drive-by traffic neon signboard to attract more customers.

Profit margin Of General STORES in India

Profit and margins vary between 2% to 20% depending on your investment and income returns. This type of Kirana store business has a good future. Expected to grow as we have a large population, and it is increasing day by day, and everyone’s requirement also.

Tremendous opportunities are available in retail in India. Therefore you need is how you attract customers, invest in better or improved technology, and provide better infrastructures. Always stay updated to know new market products, retail formats, and requirements.

Conclusion Of Grocery Shop Project Report

With a vast population increase and a strong economy, there are more than 12 million stores already available. Now people are more interested in spending money on daily needs. With so many opportunities available to attract customers. For example, focusing on better infrastructure, customers need digital technology and availability at the doorstep. You can take advantage of the best opportunities by starting the business of spices and papad manufacturing along with the grocery business.

SWOT Analysis Of Grocery SHOPS In India

You need to conduct a proper SWOT analysis for your business. It will help you to position your grocery store and attract customers. Your location needs to add strength to your new startup in India.

You can get decent leverages on your business. The risks will be less and you will have profitable earnings. You can appoint an HR and business analyst who can help you conduct the SWOT analysis deeply.

You also need to write a grocery shop business model that can help you achieve the objectives mentioned above.


The location of your grocery shop is your strength. You must choose it wisely. It must be reachable for public transport especially. Your target audience offline is the public residing within a distance of 5 kilometres. If you keep the items of their need in your store and they like your products and service. It will show good results to you soon.


A major weakness is that you can invest in a grocery store according to the finance you have but you might not be able to compete with the multi-brand department stores selling grocery items as well. Their strategies attract the public more. The public would like to go to a store that offers a wide range of products.


The opportunity that is available to a grocery shop entrepreneur is that you can sell grocery items to a large number of customers if not offline, then online for sure. You can explore the feasible studies and survey the market first and then start the grocery shop business in your city. You will get to know the reviews and expectations of the customers nearby.

Threats Of Departmental Store

Every new business has a major threat of competition and business failing. The major threat is that your business may face an economic breakdown. Another threat can be the opening of another grocery shop adjoining your shop or nearby. It may attract all your customers. But if your customers have stayed satisfied, they will buy from your only.

Frequently asked questions on Grocery SHOPS in India?

What are the advantages and disadvantages of a mini grocery shop in India?

Advantages of opening a new grocery shop in India • You will have good time control for your life. • Your house won’t lack groceries. • Additional Income is sure to come. • Different people get to know you. Disadvantages are: • You get dependent on grocery suppliers. • The quality of grocery items you buy from suppliers is not in your control.

What should I start a grocery shop or supermarket?

Well, your decision here depends on the investment you have. If you can arrange low finance for your business then a grocery shop is fine for now later you can transform it into a supermarket. If you have good finance available to you, you can start a supermarket.

What are the factors that I should consider before opening a grocery shop?

• The grocery shop location • Item types and brand • Demographic composition of the location of store • Licenses and permits that you need to launch your net setup of the grocery business in India. • Insurance and its type, and tax that you might have to pay. • Grocery suppliers and the items they have to supply • Access of labour • Store Facilities that you have to provide.

What is the cost of opening a grocery shop?

The rent or lease cost, the expense used for purchasing the permit and license, machinery, retail and supply chain software charge. You will also have to spend extra costs on setting up the infrastructure of your new grocery shop business. If you wish to buy a delivery van to supply bulk orders or get your stock picked from the supplier, the cost of buying the delivery van also adds up. The cost of hiring employees and paying them.

What are the main points that I must consider before opening a grocery store?

Plan about the profitability of your grocery shop business, and get the items for stock on cheap rates and in wholesale bulk rate. You need to keep a vision of the competitors and their strategies for promoting business. Finance is the main factor to consider. You need to keep the record and calculate the amount you are spending carefully. Like the amount spent on getting permits and licenses, rent of grocery shop etc.

Is it profitable to own and run a grocery shop?

It is profitable. The main reason to own and run a grocery shop is the evergreen type of business. The items that you are planning to sell are in demand throughout the years and on repeat. If you keep your customers satisfied and offer them good service they will make you earn good profits.

What is the best place to start a grocery shop?

Any place that has access to public transport is the best place to start a grocery shop. As customers will be able to reach you within the range and buy grocery items. The best place is also the location where people have good purchasing power and paying capacity.

What is the profit margin for a grocery shop owner?

The profit margin for a grocery shop owner is 2.2 percent.

What are the features of online grocery shop business?

• Add to cart • Product Return • Payment options • Reviews • Ratings • Rewards • Easy To Register • Quick order, repeat or reorder

What are the main challenges if I start online grocery selling?

• Hackers • Low gain margin • Insufficient and delay delivery • Skyrocketing cost

What are the skills that you must have to start grocery shop in India?

• Good Accounting and book keeping skills • Good at bargaining • Good customer service skills • Good marketing and sales skills • Attention to all details

How can I forecast whether my grocery shop will be successful or not?

• You need to check how the nearby stores are performing and you can assume how much is the earning you can have and competition too. • Keep track of the purchasing power of the public in the location where you are planning to set up your grocery store. • The demographic location needs a check. • The statistics of already running a business in that area can surely give you an idea about the success rate of your business.

Can a grocery store bring good money in my pocket?

Since humans cannot survive without eating, this shows that your grocery business will have good profits by selling the items of their daily demand.

Is a grocery shop profitable?

Of course, a grocery shop is profitable. You always earn well in the edible items business. Since grocery items are in demand always, thus it is a profitable business in India.

What is grocery retail industry?

The entire units manufacturing and selling grocery items fall under grocery Industry. Since the grocery items are sold at the retail price we tend to name this industry the retail grocery industry. The grocery sellers buy the grocery items at wholesale or low rates and then they sell them in retail to their customers.

Where can I get the grocery shop project report for bank loan pdf?

Our website has a team of professional writers who write project report after deep research. Thus you can get a grocery shop sample project report for a bank loan and write it for yourself and submit it to the bank.

Can I download grocery shop project report and use it for bank loan under pmegp mudra and another government scheme?

You can download sample project report pdf foa r grocery shop and check it out. We have listed all the important details that are useful to you. It is just a blueprint that you can consider. It will help and guide you to complete your Kirana shop business plan easily.

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