Grocery Store Executive Summary
Freshley’s Grocery Store is a locally established grocery store located in Des Moines, Iowa.
The store is founded by married couple Dan and Jan Walters, two Des Moines natives who have worked the past five years for local farms assisting them in the packaging and selling of their meat, poultry, produce and dairy items. As the population of Des Moines continues to increase and the demand for locally-sourced meat, cheese, and produce rises, Dan and Jan saw an opportunity for a neighborhood grocery store that specializes in locally-sourced products straight from Iowa farms.
Freshley’s Grocery Store will also sell beverages, baked goods, and grocery items to fit all budgets. It will be a one-stop destination for anyone to stop and get all the grocery items in one place for their household. It will be located on a main thoroughfare in the middle of town that is easily accessible to all residents of Des Moines, whether they live in the city or on the outskirts of town. Pricing will be on par with competitors and they will run monthly and weekly specials on select grocery items they happen to have an excess supply of. Freshley’s Grocery Store will also offer a membership club for frequent visitors to redeem points for discounted items.
The following are the products to be offered by Freshley’s Grocery Store:
- Meat & Seafood
- Bread & Bakery Items
- Dairy, Eggs & Cheese
- Frozen Foods
- Deli Items
- Wine, Beer & Spirits
- Cookies, Snacks & Candy
- Breakfast & Cereal
- Canned Goods & Soups
- Condiments & Spices
- Grains, Pastas & Sides
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The customer focus for Freshley’s Grocery Store will be all residents living in and around Des Moines, Iowa. They will be from all walks of life, whether they are blue collar, white collar, a university student, or city employee.
Dan and Jan Walters are the owners and managers of Freshley’s Grocery Store. They will be the points of contact with all the partnership farms, handle all inventory, scheduling, marketing and employees. Dan and Jan will work at the store every single day until stabilization and plan to appoint one of the hourly employees to a manager after three months. This employee manager will oversee the staff of the store on the one day a week Dan and Jan plan to take off from work once the store is stabilized.
Freshley’s Grocery Store is primed for success by offering the following competitive advantages:
- Freshley’s will carry the freshest and highest quality meat, produce, poultry and dairy in town as it will be locally sourced from Iowan farms.
- Competitive pricing and membership rewards program.
- Ultra-convenient location for all residents in and out of Des Moines.
Dan and Jan Walters are seeking $185,000 in debt financing to open its grocery store location in Des Moines, Iowa. The funding will be dedicated for leasehold improvements, design, working capital, marketing and opening inventory. The breakout of the funding is below:
- Store design/build: $50,000
- Opening inventory: $100,000
- Working capital: $25,000
- Marketing promotions: $10,000
The following graph below outlines the pro forma financial projections for Freshley’s Grocery Store.