How to open a clothes shop UK

How to start up a clothes shop

How to start up a clothes shopToday we will walk you through the process of starting up a shop and give you essential details along the way from how to launch your own clothing store to finding clothing suppliers and marketing your business.

The wide world of retail is certainly a busy and competitive one, but room for newcomers is always being made available. If you believe you can fill a gap in the market or add something to your local area that will prove to be a strong money maker, nothing should hold you back from fulfilling your business dream.

There are no signs of people falling out of love with buying clothes in the UK, with new records of spending being made each year.

Statista reports that, “Consumer spending on clothing in the UK from 2005 to 2020 has continually increased year after year. In 2019, spending on clothing reached an all-time high at 61.2 billion British pounds.

In ten years, from 2009 to 2020 UK consumer spending on clothing increased by almost 17 billion British pounds”. So, now that you know there is demand for your business and the products it will eventually sell, it is time to do some further market research.

What is a clothes shop?

A clothes shop, also known as a clothing store or boutique, is a retail establishment that offers a diverse range of apparel and accessories for customers to purchase. These shops cater to various styles, trends, and preferences, providing a convenient and engaging shopping experience for individuals seeking to update their wardrobes or find specific garments for specific occasions.

From casual wear to formal attire, a clothes shop typically stocks a wide array of clothing items, including dresses, tops, trousers, skirts, jackets, and more. Additionally, they may feature a selection of shoes, bags, and fashion accessories to complement the outfits.

The staff at a clothes shop are often knowledgeable about fashion trends and styles, providing personalized assistance and advice to customers to help them make informed choices.

Whether it’s a large retail chain or a small boutique, a clothes shop plays a vital role in the fashion industry, offering a platform for customers to express their individuality and sense of style through their clothing selections.

Clothes shop ideas

The key to success lies in finding your unique niche. This could revolve around the clothing style you offer or the specific customer segment you aim to attract. For instance, you might specialize in suits, second-hand clothing, or ethical brands. Another option is to focus on clothing with a distinct heritage or culture that you are knowledgeable about, such as selling South African garments or importing clothes from Poland.

Alternatively, consider catering to specific groups, like petite clothing, baby clothing, school uniforms, or extra-large men’s wear. As with any business venture, conducting thorough market research is essential. Identify your competitors, understand your target audience, and gather feedback on the clothing products and price points you plan to offer.

Check out our guide on calculating your target market and utilize our free business plan template to shape your vision.

If you’re considering starting a shop, explore our comprehensive retail guide for further insights. Your success story begins with a well-defined niche and a strategic approach to serve your customers best.

The current fashion market

The fashion industry’s fortunes can be significantly influenced by external factors like weather and interest rates. For instance, during a mild winter like in 2006, the demand for new winter clothing might dwindle, impacting sales for clothing stores. Similarly, an increase in interest rates can dampen consumer confidence, leading to reduced spending on non-essential items like designer clothes.

This scenario can pose challenges for specialized stores catering to high-end fashion, while second-hand clothing stores can potentially benefit by offering affordable options. Michael Goodmaker, a seasoned adviser to the clothing retail sector and a member of the Institute of Business Advisers, works closely with numerous small clothing stores in East London.

He points out that the competition in the clothing industry can be fierce, especially with supermarkets gaining a significant share of clothing sales, and chain stores outperforming independent retailers on the high streets. When contemplating the launch of a clothing store, it’s crucial to carefully evaluate the risks involved and exercise prudent judgment in choosing the opportune time to start.

Understanding market dynamics, consumer preferences, and competitor strategies will be essential in crafting a successful business plan. By remaining adaptable to changing market conditions and leveraging your unique selling proposition, you can navigate these challenges and thrive in the vibrant and competitive fashion landscape.

Who is running a clothes shop suited to?

Just like numerous retail ventures, the beauty of starting a clothes shop is that formal qualifications are not a prerequisite. However, to maximize your potential for success, acquiring specific skills becomes vital. Embracing these skills will empower you to navigate the dynamic world of fashion retail with confidence and competence.

Effectively managing stock:

In the ever-changing fashion market, staying ahead of the game requires precise stock control. Understanding seasonal trends and busy periods (such as March to May and September to December) is essential to ensure you have enough of the popular lines during peak times, while preventing unsold clothes from accumulating during quieter periods or seasonal transitions.

To achieve this, organization and a keen fashion sense are paramount. Anticipating changes and trends will be vital in maintaining a well-stocked shop. Consider investing in an electronic point of sale (EPoS) system, which tracks every item sold and calculates remaining stock. This way, you can keep your inventory well-managed and quickly identify the top-selling lines.

Crafting a captivating image:

Fashion is all about image, and your clothes shop should reflect the aspirational style your customers desire. Your keen fashion sense will be indispensable in curating a collection that appeals to your target audience. The image also extends to the shop’s layout and atmosphere. Attention to detail in how clothes are displayed, the store’s fixtures, fittings, and overall ambiance can create an inviting and enticing shopping experience.

The name of your shop itself plays a role in conveying the brand’s image. Interior decoration flair will come in handy when setting up your shop to create an attractive and appealing environment.

Exceptional customer service:

Small clothing shops often differentiate themselves from larger competitors through the outstanding service they offer customers. Since you’ll be in constant contact with the public, excellent interpersonal skills are a must. Welcoming and engaging with customers, offering fashion advice, helping with color choices and fitting can go a long way in building customer loyalty.

You might even provide additional personalized services like taking measurements or offering tailoring expertise to tailor clothes to perfection for customers. Being approachable and forming a close connection with customers will set your shop apart from the rest.

Business expertise:

Running a clothes shop involves more than just fashion know-how. Business acumen is necessary for calculating stock levels, profit margins, negotiating prices, and managing tax returns. Be prepared to dedicate six days a week and put in long hours, especially during busy times like the holiday season. Beyond all the logistics, maintaining a genuine passion for fashion and a deep enthusiasm for the clothes you sell will drive your success. Being able to genuinely enthuse about your stock when presenting it to customers will create lasting impressions and encourage repeat business.

Liz Urwin, the owner of Bottega, a ladies fashion boutique in Cheshire, emphasizes the importance of connecting with customers and being comfortable in an intimate, personal relationship with them. Understanding the nuts and bolts of the fashion retail business while fostering a love for your merchandise will undoubtedly contribute to the triumph of your clothes shop.

How to make your clothes shop stand out

If you possess the passion, skills, and charisma to embark on the journey of setting up a clothes shop, the next crucial step is to determine the type of shop you want it to be. As mentioned earlier, most successful small independent shops tend to focus on a particular specialization.

According to Michael Goodmaker from the Institute of Business Advisers, niche market retailing is a thriving area within the retail industry. Identifying your niche might be as simple as looking at yourself in the mirror. Consider what unique needs or preferences you have as a customer. For instance, if you are exceptionally tall and struggle to find fitting trousers in London, chances are there are others facing the same challenge. This realization opens up a market opportunity for you to supply clothing tailored to this niche.

To ensure the success of your clothing store, it is essential to deeply understand your target customers and cater to their specific desires. Your target market can be diverse, ranging from teenagers to affluent women or outdoor enthusiasts. Even if you choose to specialize in a single type of clothing, such as suits or school uniforms, defining your customers’ preferences will play a significant role in your success.

In an ideal scenario, your clothing store should offer garments that are not readily available elsewhere in your vicinity. Many suppliers often sign exclusivity agreements, restricting the distribution of the same clothes to other nearby shops. While this might limit your choice of labels, it can work to your advantage. Offering exclusive, popular clothing items will attract customers and help build a loyal customer base. By catering to a specific niche and providing unique, sought-after pieces, your clothing shop can stand out and thrive in a competitive market.

Business Location:

After deciding on the type of clothes shop you want to open, finding the right premises becomes crucial for your success. Michael Goodmaker emphasizes the significance of a prime location, as being off the main areas could deter potential customers from visiting your shop. Prominent positions on the high street or near superstores capture passing trade, but they can also come with higher rental costs. Conduct market research to determine if locating just off the high street would still attract enough foot traffic without impacting your business adversely.

Consider setting up near other small independent shops that offer similar, but not identical, fashion items. This strategic positioning can attract clothes shoppers who enjoy browsing multiple shops before making their purchases. Once you’ve secured your premises, promoting your shop becomes vital for driving footfall and increasing sales.

Promoting Your Clothes Shop:

Inside your shop, ensure that garments are clearly displayed and kept up-to-date. Frequent rotations of new ranges to prominent positions and eye-catching window displays with attractive mannequins will help draw in customers. Creating a comfortable atmosphere aligned with your target market is crucial; tailored decor and ambiance make a substantial impact on customers’ perception of your shop.

Advertising to the local area is essential for attracting customers. Make sure your shop’s details are in directories like the Yellow Pages and advertise in local newspapers, particularly when announcing new stock or sales. Building an informative website can effectively promote your shop, showcasing your products, sales, opening times, and contact information. An online shop can significantly contribute to your turnover, especially for items that don’t require trying on, like socks, ties, or t-shirts.

Creative promotion methods, such as organizing fashion shows in support of charity, can generate a buzz around your shop and attract potential customers.

Using the Internet Instead of a Storefront:

For those concerned about the initial investment needed to start a brick-and-mortar clothes shop, there are alternative, cost-effective routes to success. Selling clothes online, through mail order, at shows, or via a website can be equally profitable. Mike Dene, co-founder of Denewear, shares his success story of importing specialist outdoor clothing and marketing it through shows, exhibitions, and mail order. Their online presence further boosted sales and expanded their reach.

Starting an online clothes store allows you to consider dropshipping as an option, which means you don’t need to hold physical stock. This approach can be beneficial for testing products and market demand before making larger investments in your clothing business. Embracing innovative online strategies and tapping into niche markets can lead to successful clothing ventures without the need for a traditional storefront.

When setting up a physical clothes shop, your initial costs will be influenced significantly by the shop’s size and location, as rental expenses will be a major consideration. It’s essential to strike a balance between the shop floor and storage space.

Outfitting the shop floor requires display rails, shelves, chairs, mirrors, and changing facilities. While some of these items can be purchased second-hand, remember that the shop’s image directly reflects on the clothes, so be cautious about using cheap display equipment.

Liz Urwin, owner of Bottega, a ladies fashion boutique in Cheshire, invested significantly in renovating her shop, spending around £15,000 on new fixtures, fittings, and a maple floor to create an upmarket display environment that complements her high-quality clothing.

Equip your shop with a suitable cash-till system, which can range from £200 for a basic standalone machine to around £2,000 for an Electronic Point of Sale (EPoS) system with software. You’ll also need a computer, printer, and basic accountancy software to manage the business’s administrative aspects.

Security is a crucial consideration, given the prevalence of crime in clothes shops. Investing in CCTV and a security tagging system, if necessary, can help mitigate potential risks.

Purchasing stock is another significant expense, especially for new businesses without established credit. Suppliers may be hesitant to offer credit terms initially, which means you might have to pay upfront for your first orders, impacting your cash flow. When dealing with suppliers, ask relevant questions, such as their minimum order requirements, shipping costs, payment structures, and whether they offer sale or return options.

Taking into account factors like location, shop furnishings, and stock, it is safe to estimate that you will need upwards of £50,000 to start your clothes shop. To aid in formulating your clothes shop business plan, you can download a free business plan template, which will guide you through the process of setting up your venture

What can I earn as a fashion entrepreneur?

The success and turnover of your clothes shop will heavily depend on the items you stock and your sales volume. While more expensive items may have higher profit margins, they are likely to sell less frequently. To boost your income, consider stocking accessories and jewelry, as these often come with a bigger mark-up compared to clothes.

Michael Goodmaker, an expert from the Institute of Business Advisers, emphasizes that people can indeed achieve substantial profits from this type of business. When you get your strategy right, the potential for significant rewards exists. However, it’s essential to acknowledge that the risks can be substantial as well. In today’s competitive landscape, obtaining such rewards can be more challenging, but with a well-thought-out plan and a clear understanding of your target market, your clothes shop can still thrive and bring financial success.

Tips, questions and useful clothes shop contacts

Tips for Success:

  1. Find Your Niche: Instead of trying to compete with larger stores by stocking a wide range of clothes, focus on a specific niche. Identify a gap in the market and cater to a particular segment of customers. Specialization will help you stand out and attract your target audience.
  2. Choose the Right Location: Location plays a crucial role in attracting customers. High street locations near supermarkets offer the most passing trade but can be expensive. Find the most accessible site that fits within your budget to ensure maximum visibility.
  3. Work on Your Image: Fashion is all about selling an image. Create a visually appealing and inviting atmosphere in your shop. Your customers should be attracted not only to the clothes you sell but also to the overall shopping experience you offer.
  4. Be Inventive: Stand out from the competition by trying creative and imaginative ways to engage with your audience. Consider organizing fashion events, collaborating with local newspapers for editorial features, or exploring unique marketing strategies that resonate with your target customers.
  5. Control Stock: Ensure you have a well-managed inventory and enough garments in the right sizes to meet customer demand. Effective stock control is essential to avoid disappointing customers and maintain your reputation.

Useful Contacts for Clothing Wholesalers:

  1. Association of Suppliers to the British Clothing Industry – www.asbci.co.uk
  2. British Retail Consortium – www.brc.org.uk
  3. British Shops and Stores Association – www.british-shops.co.uk
  4. The Wholesaler UK – www.thewholesaler.co.uk
  5. Drapers Magazine (lists suppliers) – www.drapersonline.com

For sourcing wholesale designer kids’ clothes or fashion clothing suppliers, consider visiting wholesale clothing supplier showrooms in person, especially in areas like Eastcastle Street in London or Great Ancoats Street and Piccadilly Gardens in Manchester.

Attend fashion/trade shows like those at the Birmingham NEC, where you can connect with various suppliers, both large and small. Cash and carry wholesalers might be a practical option, allowing you to buy what you need when you need it, which can be especially helpful for startups with limited capital.

Explore different resources to find the right suppliers that align with your business requirements and budget.

Frequently asked questions

How much does it cost to open a clothing store?

The cost to open a clothing store is between £50,000 and £150,000. Of course, the actual amount may vary by location, products and individual facility. In any scenario, you'll need the sufficient amount of financing to bankroll your business plan.

Do you need a license to sell clothes UK?

No, you do not need a license to sell clothes UK, (unless you're trading at a market, in which case you'll need a market stall license).

Conclusion

In conclusion, starting and opening a clothing shop in the UK can be an exciting venture for aspiring entrepreneurs with a passion for fashion. By identifying a niche market, choosing the right location, and creating a compelling image, you can attract and engage your target customers.

While the initial setup costs may vary based on factors like shop size, location, and stock, careful planning and budgeting are essential for success. Additionally, exploring creative marketing strategies and staying adaptable to industry trends will help your clothing shop thrive in a competitive market.

With the right approach and dedication, your clothing store can become a destination of choice for fashion enthusiasts, offering them a memorable shopping experience and a carefully curated selection of clothing and accessories.

Business Finance Expert at PDQ Funding | + posts

Lee Jones is a seasoned Business Finance Specialist with over two decades of invaluable experience in the financial sector. With a keen eye for market trends and a passion for helping businesses thrive, Lee has become a trusted advisor to countless organizations seeking to navigate the complexities of finance.

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