Running a retail store – G’day Business

In short

Know your numbers - margin per product, stock turnover and sales per day - and review them weekly.
Buy stock carefully. Slow-moving stock ties up cash; reorder best-sellers before they run out.
Displays, lighting and a tidy, welcoming shop do a lot of the selling.
Be clear about the payment methods you accept, and follow the ACCC's rules if you offer lay-by.
Compete on what online stores can't easily offer - expert advice, service, experience and community - and be easy to find online.

Choose your location carefully

Rent is one of a shop’s biggest costs, and location drives sales. business.gov.au suggests listing your needs before you search, including foot traffic and visibility, nearby customers, parking and public transport, competition, and zoning and permits. Visit at different times of day to see who walks past. See Choose your business location and Setting up an office for lease checks.

Know your numbers

Track these weekly:

Sales per day and per week, compared with last year.
Gross margin: sales minus the cost of the goods sold, as a percentage. Know it for each product line.
Average sale and number of transactions: are more people buying, or are people spending more?
Stock turnover: how quickly each line sells. Slow lines tie up cash and space.
Wages and rent as a percentage of sales.

Your point-of-sale system can report most of this. See Financial planning and cash flow.

Buying and stock

Buy for your customers, not your own taste. Use sales data to decide what to reorder.
Start with smaller quantities of new lines, and reorder what sells.
Watch lead times so best-sellers don’t run out, especially before busy seasons.
Clear slow stock with a plan: move it, bundle it, discount it, then stop buying it.
Check suppliers’ terms: minimum orders, payment terms, returns and freight.
Count regularly, at least for high-value lines, to catch losses early. See Retail security and loss prevention.
Product safety: make sure products meet Australian standards, especially toys, children’s products and electrical items.

Pricing

Work out the full cost of each item, including freight, then add a margin that covers your overheads and profit.
Check competitors, including online, but don’t try to be the cheapest at everything.
Display prices clearly, including any compulsory charges in the total price.
Be careful with sales claims: “was/now” prices, “sale” and “lowest price” claims must be genuine. The ACCC says claims must be accurate and based on reasonable grounds.

Displays and the shop floor

First impressions: a clean, well-lit shop front and entrance with a strong display.
Group products the way customers shop, and place related items together.
Eye level sells: put best-sellers and new lines where people look first.
Refresh displays regularly, so returning customers see something new.
Keep it tidy: full, faced-up shelves sell more and make losses easier to spot.
Make it accessible: clear aisles, ramps and counters people can reach.

Customer service

Service is a small shop’s biggest advantage.

Greet every customer and offer help without pressure.
Know your products and train staff so they can advise.
Make it easy: gift wrapping, ordering in, delivery, click-and-collect.
Ask for reviews and reply to them. See Customer service that keeps customers coming back.

Payments, lay-by and refunds

Payment methods: the ACCC says most businesses can choose whether to accept cash, but must be clear and upfront about the payment types they accept and the total minimum price. Some supermarkets and fuel retailers must accept cash under rules from 1 January 2026.
Card surcharges: surcharging on eftpos, Mastercard and Visa ended on 1 October 2026 under the Reserve Bank’s reforms. See Selling online.
Lay-by: if you offer it, the ACCC says the agreement must be in writing, in plain language, and set out all terms including any termination charge. Customers can cancel before delivery and get a refund less any termination fee stated in the agreement.
Refunds: customers have automatic consumer guarantee rights to a repair, replacement or refund for faulty goods. “No refunds” signs aren’t allowed. Change-of-mind refunds are optional, but honour your policy if you offer them.

Competing with online stores

Be findable: a complete Google Business Profile with hours, photos and reviews, and a simple website. See SEO and GEO.
Sell online too, if it suits your products. See Selling online.
Offer experiences: workshops, tastings, demonstrations, launches.
Build a community: an email list, loyalty rewards, local partnerships. See Email marketing.
Stock what’s hard to find online, and offer expert advice customers value.

Common questions

How do I work out the right price for products in my shop?

Start from your full cost per item, including freight, then add a margin that covers your overheads and profit. Check competitors’ prices and what customers will pay, and review margins on each product line regularly.

What are the rules for lay-by in Australia?

The ACCC says lay-by agreements must be in writing, in plain language, and set out all terms including any termination charge. Customers can cancel before delivery and get a refund less any termination fee clearly stated in the agreement.

Do I have to accept cash in my shop?

The ACCC says most businesses can choose whether to accept cash, but must be clear and upfront about the payment types they accept and the total minimum price. Some supermarkets and fuel retailers must accept cash under rules from 1 January 2026.

How can a small shop compete with online stores?

Offer what online stores can’t easily match: expert advice, the chance to see and try products, personal service, events and community. Make sure customers can find you online, with an accurate Google Business Profile and, if it suits you, an online store.