Opening a yarn store is a childhood dream for many. A passion for yarn and knitting often leads to a desire of “turning a hobby into a career”. How to go about opening a yarn store is often unclear and reliable and helpful information is often hard to find. We as a leading yarn producer with over 40 years of experience want to help. We would be happy to offer advice and help tailored to your individual needs. However, a few key points should be considered beforehand.
How do I choose a location?
The right location is a key factor for success. Factors such as population size and the potential number of knitters within the population play an important role. A certain population size is an important prerequisite for a strong customer base. Another point to consider is competition. On average, one well-stocked yarn store is sufficient in a small to mid-size town. If a yarn store is already established at your preferred location, you may want to consider alternative locations in surrounding areas. Or you may want to consider buying out an existing store (current offers can be found under “Buy-outs”).
Through close relationships with our retail partners and exclusive product offerings, LANA GROSSA provides valuable support for new stores with recognized potential.
What to bear in mind.
After having decided on a general location, the search for a shop location begins. The three most important factors to consider are location, location, location. A highly visible location ensures a steady stream of walk-in customers in addition to regular customers. A prime location and higher rent almost always go hand in hand and it is paramount to find the right compromise.
The amount of affordable rent depends of course largely on expected sales revenue. As a rule of thumb, your monthly rent should not exceed 1,000 €. Once established, it is always possible to move to a new store location. On average, the space
requirements for a yarn store are approx. 30 qm² (300 – 350 sq ft) of retail space and possibly additional
What is my profit margin on a ball of yarn? It is best to request our price list. In addition, we offer revenue-based bonuses and financial support for your advertising and marketing activities.
How much do I have to invest?
The two highest cost factors when opening a yarn store are inventory and store fixtures. It is difficult to quote a flat rate for the initial inventory; the amount of inventory depends largely on the type of store (dedicated yarn store or yarn and other crafts)
and the size and location of the store. In general, the initial cost to stock a new yarn store with yarns for the fall/winter season averages approx. 15.000 – 20.000 €. An additional 2.000 € should be allocated for a basic assortment of needles. This initial inventory will get you started; inventory levels can subsequently be maintained by reordering products from Lana Grossa which are delivered to you withing 1 – 2 working days.
How much do I have to invest?
Store fixtures are available in many different price ranges. Only you will know whether your budget allows customized fixtures built by a professional shop fitter or shelving from IKEA. But even on a small budget it is possible to outfit your store nicely. We recommend to be economical in the beginning and let your sales revenue dictate customized options in the future. Basic fixtures such as shelving, mannequins and displays are available from Lana Grossa at discounted prices. Please ask us!
What are the best marketing strategies to increase sales?
Marketing is one of Lana Grossa’s key strengths. In addition to 30 FILATI magazines per year and our strong online presence we also offer affordable shop models and window decorations, professional direct mailing services to reach your regular customer base, frequent joint advertising and promotional campaigns and much more.