Retail Stores Worth It

[stormjohn]

Hi,
I may have the opportunity to Open a Retail Card Store in the South Eastern Suburbs of Melbourne.
Just trying to gauge if people think a Retail Store would still be feasible these days, with everything done online nowdays.
There is no Dedicated Card stores around my area so no real competition in terms of an actual shop..
Also with the USD, import tax, shipping etc and not knowing wholesale cost as yet I'm not real sure what kind of profit is to be made on Boxes/cases etc..
If anyone has any info/ideas on here that would be great to hear.
Cheers john

 

[GarnettFan4Life]

I can't say with much certainty now that Fanatics is coming in, that should be your first research point imo - if basketball would be a big part of your stock and maybe box breaks etc Fanatics are bringing in new rules with shops, buying from them, how you sell etc etc, major changes you might have heard some.



https://sportscollectorsdigest.com/...idelines-sports-cards-memorabilia-hobby-shops

 

[stormjohn]

I can't say with much certainty now that Fanatics is coming in, that should be your first research point imo - if basketball would be a big part of your stock and maybe box breaks etc Fanatics are bringing in new rules with shops, buying from them, how you sell etc etc, major changes you might have heard some.



https://sportscollectorsdigest.com/...idelines-sports-cards-memorabilia-hobby-shops

Thanks for the info mate, interesting read..
Yea I've heard about Fanatics coming in but hard to judge all the in and outs without direct contact with wholesalers/importers etc..
But will definitely researching more into it.
Plans are most sports, but with a range of non sports too..

 

[BJD]

I had this same conversation with a mate of mine the other day and we both agreed that it's way easier to operate online, for obvious reasons.

On the flipside, look at how many stores who operate online also have a brick and mortar store. Cherry, EJ, there's many! It all depends on the demographic and you are 100% right that the SE is lacking in collectible stores, especially cards.

I know this is of no help, but if I had disposable income to do it, I would give it a whirl and try my luck.

 

[Dodgydave]

I have never run a card shop but I have managed big box retail and owned a wholesale business that dabbled in retail off our warehouse.

In my experience retail rent is an absolute killer. I look at a lot of smaller stores and wonder how they ever pay the rent. (Unless they own the space and are just not caring about their ROI as they just like having a store.)

Not to be a downer or controversial, but isn't the card collecting market on the down swing anyway? Wasn't the time to try this 2 years ago? Maybe it's different in Australia than what I see online out of the US and here in NZ. Does the cricket/rugby league/AFL area offer some greater insulation vs the US sports market which seems to be tailing off?

I know a few exclusively card/sports memorabilia shops tried opening here in NZ post-pandemic but all but one have been driven out of the market by rents. The only one I know of still running a physical outlet is a nice set up but they run out of one of the guy's garages (surely unconsented in a residential zone ) and freely admit paying commercial rents would not be feasible.)

Not to be discouraging but all food for thought.

 

[Matt26]

I have never run a card shop but I have managed big box retail and owned a wholesale business that dabbled in retail off our warehouse.

In my experience retail rent is an absolute killer. I look at a lot of smaller stores and wonder how they ever pay the rent. (Unless they own the space and are just not caring about their ROI as they just like having a store.)

Not to be a downer or controversial, but isn't the card collecting market on the down swing anyway? Wasn't the time to try this 2 years ago? Maybe it's different in Australia than what I see online out of the US and here in NZ. Does the cricket/rugby league/AFL area offer some greater insulation vs the US sports market which seems to be tailing off?

I know a few exclusively card/sports memorabilia shops tried opening here in NZ post-pandemic but all but one have been driven out of the market by rents. The only one I know of still running a physical outlet is a nice set up but they run out of one of the guy's garages (surely unconsented in a residential zone ) and freely admit paying commercial rents would not be feasible.)

Not to be discouraging but all food for thought.

The biggest killers are Rent, Insurances, Utilities etc. staffing (who operates the shop when you cant be there?), security of the shop and the initial outlay of commercial fit-out etc.

You can operate an online store which requires none of the above - the trade off is you cant have joe average walk in off the street to spend hundreds of dollars with you.

I have worked in a shop before and the day to day sales can be extreme. There were days where there were 10K in sales and some days when there as $100 in sales.

Biggest tip is to diversify your offering as while cards may be in at the moment, the next hottest collecting thing may actually keep you alive during times when other hobbies are down. If you are looking at a sports card only you may struggle, but if you do a variety of things like Pokemon, Lego, Games, Toys as well you could ride the bumps out a bit better!

Good luck in whatever you do!

 

[Brendan_B]

As a customer, I love the idea of a bricks and mortar store. We had one open in Brisbane early last year, I love going in and being able to grab anything from some top loaders / penny sleeves to boxes, packets and singles.

Obviously, there is a substantial expense to a physical store, but I think if you do your research, have the right stock and a solid online platform to subsidize things you have a fighting chance. Variety is key IMO.

Having various boxes of all sports, non-sports and then just some weird and wacky things.

Doing breaks will help as will an affiliation with a grading company.

Good luck if you go that way but to reiterate, as a customer, I love a physical store!

 

[TheCardExperience]

I'd recommend setting up at local card show first to test the market and see what works and what doesn't.

 

[kiwi_in_melb]

From someone in the south east in a selfish way it would be awesome to have something else out this side of the world.
Not sure what suburb you'd be looking at but there are a few options out this way with MSF in Mulgrave, Dad and Daves at Dandy market, "those who shall not be named here" now open in Cranbourne West also.

But as mentioned above with everything trying to find a point of difference other than convenience is also going to be key.

An online presence in the crowded breakers-sphere could be a difficult nut to crack.

Best of luck if you do go ahead with it, takes a brave person to even consider dipping their toe in the water in this space

 

[Dodgydave]

Definitely should have mentioned the TCG space. There seems to be a lot more of these type of card stores in NZ than those doing sports cards.

Also, I doubt employing staff would be an option. In my experience, starting out self employed means financially you will need to do everything, so be prepared to work all hours you intend to be open. Also, ensure you are open all hours you say you are. Nothing more annoying than showing up somewhere and it is closed when it should be open!

 

[BJD]

Not to be a downer or controversial, but isn't the card collecting market on the down swing anyway? Wasn't the time to try this 2 years ago?

This is also a great point to make.