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View Full Version : Business Chat Shop opened all year – is it profitable ?



sabikeuk
21-09-2011, 11:42
Hi,

I am planning to move to Tenerife and open a small shop.

I am assuming that the main season when the most of the visitors arrive is from May till October.

How about winter season from November till April – is there a big drop of visitors coming to the island or is it still okay to run a shop during this time and be profitable?

Thank you,
Dan

doreen
21-09-2011, 14:42
Hi Dan ... it really depends on what you are selling - is it aimed primarily at tourists, or is liked by/essential to residents as well. The busiest period is the Summer, especially July & August, but a lot of that market is Spanish who are not known for being big spenders. Market picks up again in October & November with Scandinavians who are known to spend more money. Dead for the first 3 weeks in December etc etc.

sabikeuk
21-09-2011, 14:48
Hi Doreen,

would like to open a small boutique (cloths or similar), it'll be preferably for visitors in the south of Tenerfie (PDLA, C.Adeje).

How is it in the first 3 months of the year?

I have been in Tenerife in June and it was very busy ...

9PLUS
21-09-2011, 15:12
How is it in the first 3 months of the year?


Impossible to say sabikeuk


You will only sell if people like your clothes/products regardless whether there be 10,000 or 1,000,000 people here...

doreen
21-09-2011, 15:12
The first three months of this year were certainly busy compared to the previous year or two ... because of problems in other tourist destinations such as Tunisia and Egypt - hopefully we will keep some of that increase.

Retail is not my field - but as has been said on other threads, location must be the key ... good daytime footfall is what you are looking for .. and of course, having a unique and/or well priced product.

bonitatime
21-09-2011, 19:22
I think more than anything location and what you are selling are the main factors
It doesnt die here as it does on the mainland and I know nowhere that shuts beyond a month and retail probably not that long.
I think you need to look into Tenerife further as it is really a winter resort which you seem to have missed.
Clothes (I presume this is what you plan not table cloths) are a very difficult market and unless you have experience I am not sure I would try. Business rents are generally very high. A shop near us with 80 square metres was 3,500 euros a month. In Playa Fañabe.
We have a shop and if there is any questions I will try to answer them.

tonypub
21-09-2011, 20:37
Hi,

I am planning to move to Tenerife and open a small shop.

I am assuming that the main season when the most of the visitors arrive is from May till October.

How about winter season from November till April – is there a big drop of visitors coming to the island or is it still okay to run a shop during this time and be profitable?

Thank you,
Danthink you need to do lots and lots of investigation dan.have you ever been to tenerife?

9PLUS
21-09-2011, 21:35
Clothing for the larger lady


Punt Roma always seems to do well

fonica
21-09-2011, 22:45
Hi,

I am planning to move to Tenerife and open a small shop.

I am assuming that the main season when the most of the visitors arrive is from May till October.

How about winter season from November till April – is there a big drop of visitors coming to the island or is it still okay to run a shop during this time and be profitable?

Thank you,
Dan No, that´s Blackpool.Tenerife was and to a large extent still is a winter resort.The tourists with money are here from December until March and the local economy for rest of the year depends on many different factors.More important for you are a knowledge of Spanish and the way the Spanish tax/social security system works and the fact that very,very few businesses survive here even when they are opened by Spanish people or
people with a good local knowledge.Investigate well and be really careful!!!!

slodgedad
21-09-2011, 23:02
Location, location, location.

After 17 years in Tenerife there are places that do better in the summer and some that may as well close for 'summer'

Tenerife is a 52/7 resort and it's all down to the location and product you have on offer.

The owner of the bar I work in on a Sunday night has often told me he would love to close for 'summer', but daren't because of the odd returner.

sabikeuk
27-09-2011, 11:30
We have a shop and if there is any questions I will try to answer them.

Thank you for reply. What kind of shop is it if you don't mind...?

Added after 3 minutes:

Thank you guys for all your replies.

I understand very well that location will be the most important for us not just to open our shop but also survive ... also better location = higher rent.

I have been in Tenerife, only once, in PDLA...love it there. Would prefer to open shop there.

bonitatime
27-09-2011, 11:48
A CD Tenerife and other teams football shop. We are fairly sure location wasn't so important for us as what we have is special but still rent where we are varies tremendously from shop to shop
Good luck if you open.

TenerifeTeddy
27-09-2011, 15:24
IMO you need to look carefully at your location and target market.
In some places the rents are very reasonable and negotiable and in others they are outrageous, there are also many landlords who would prefer to see their local empty than reduce the rent, so look around.

I think a clothes shop that offered cheap prices would be likely to do well (see the Primark thread), but if they are too pricey, especially if not a boutique, it would probably fail. We had a clothes shop set up next to us a couple of years ago run by a German woman, she had plenty of people calling into her shop. Her clothes weren´t particularly special, but they were pricey at around €80 for a dress, she lasted less than 6 months. Yet another couple who sold cheap clothes purchased from UK suppliers, did a roaring trade by setting up stalls in bars.

sabikeuk
30-09-2011, 15:22
A CD Tenerife and other teams football shop. We are fairly sure location wasn't so important for us as what we have is special but still rent where we are varies tremendously from shop to shop
Good luck if you open.

TO BONITATIME:
I have tried to send you PM but your inbox is full. Anyway I will post it here:

I was trying to find empty local/shop on the internet but couldn't find any.
Only found shops for sale.
I want to rent empty shop as I don't have a money to buy existing one - do you think it will be possible or rather hard to find ?

anto3
30-09-2011, 19:07
[QUOTE=sabikeuk;102442]TO BONITATIME:
I have tried to send you PM but your inbox is fu




















Wrong business to open. Talking this week to a lady who open a clothes shop on the busy main street in los cris. When she opened a few months ago the prices were 15 to 20 euro per garment now everything is 3 to5 euro as she could not sell them. The swallows do not spend money on clothes as they do not need extra baggage. If i and my friend want any clothes we go to Sara

Muppet
01-10-2011, 10:39
I think I would agree with the last few comments. Northern Europe has chains of massively cheap clothing outlets - Primark, Matalan M&S etc etc.

Most of these outlets do some form of internet shopping/delivery these days, those that don't now soon will.

You would need to import your stock - that would not be cheap as transport costs would be high and import duty to pay.

Tourists don't buy clothes on holiday because of the baggage allowance issues. Residents needing cheaper things for work etc., would probably use the Chinese shops and so on and stock up once-yearly on a trip home which is combined with a visit to relatives.

IMO there is little demand for fashion here as most of the time people are dressed in shorts and flip-flops!

Being simplistic, as others have said before, your rent in popular areas could be as high as 3k per month, add to that your other running costs, electric (including air-con) water, Social Security and other employment costs for yourselves, let alone any staff, your minimum monthly running costs will be at least 6k. With a probable maximum profit / turnover ratio of maybe 25% on your sales (cost of your stock transport, import duty and so on) thats going to be an awful lot of 10E T-shirts and flip-flops to sell a month just to stand still.

Doesn't seem to stack-up, unless your product line is so unique that it is an essential and irresistable buy, with massive appeal to the Spanish market as well as the British, German, French and Russian markets too.

Tom & Sharon
01-10-2011, 12:46
I think I would agree with the last few comments. Northern Europe has chains of massively cheap clothing outlets - Primark, Matalan M&S etc etc.

Most of these outlets do some form of internet shopping/delivery these days, those that don't now soon will.

You would need to import your stock - that would not be cheap as transport costs would be high and import duty to pay.

Tourists don't buy clothes on holiday because of the baggage allowance issues. Residents needing cheaper things for work etc., would probably use the Chinese shops and so on and stock up once-yearly on a trip home which is combined with a visit to relatives.

IMO there is little demand for fashion here as most of the time people are dressed in shorts and flip-flops!

Being simplistic, as others have said before, your rent in popular areas could be as high as 3k per month, add to that your other running costs, electric (including air-con) water, Social Security and other employment costs for yourselves, let alone any staff, your minimum monthly running costs will be at least 6k. With a probable maximum profit / turnover ratio of maybe 25% on your sales (cost of your stock transport, import duty and so on) thats going to be an awful lot of 10E T-shirts and flip-flops to sell a month just to stand still.

Doesn't seem to stack-up, unless your product line is so unique that it is an essential and irresistable buy, with massive appeal to the Spanish market as well as the British, German, French and Russian markets too.

I'm not sure about that point of view.

Blueberry Bobs hairdressers have opened a clothes shop in San Blas this year, and t seems to be doing really well. It's just what we needed. It's all imported from the UK, they do quite a lot of larger sizes, and it is all really reasonably priced.

I have spent quite a bit of money in there since it opened, as have a lot of our neighbours.

When I have been in there, it has always been busy, and seems to be a mix of residents and tourists who are buying. One or two extra dresses in your suitcase don't make that much difference to your weight allowance.

The choice of stock, location and pricing all seem "bob on" to me. Someone who knows what they are doing - and that's the difference.

bonitatime
01-10-2011, 18:29
You can rent and I know people with mens and ladies boutiques who are making a living even in these times. I will clear my inbox

Saltnpepper
02-10-2011, 14:20
Hi Doreen,

would like to open a small boutique (cloths or similar), it'll be preferably for visitors in the south of Tenerfie (PDLA, C.Adeje).

How is it in the first 3 months of the year?

I have been in Tenerife in June and it was very busy ...

Hi - if you do decide to open a clothes shop/boutique I have a lot of ladies clothing from a shop that I once opened in Las Americas which you are welcome to buy as start up stock ...