Should I buy an existing grocery store or open a new one?

Anyone who wants to own a grocery store has to choose a road. There is no single answer, because the two roads trade one set of risks for another. Our guide to buying a grocery store assumes you are buying. Here the two routes are set side by side, so you can see what you take on with each.

What you inherit when you buy

An existing store comes with records you can check, a customer base, staff who know the shop and supplier terms already in place. You also inherit its problems: ageing refrigeration, a layout you did not choose and habits you may want to change. Ask for the equipment list and service records. Ask which supplier terms transfer to a new owner and which are personal to the seller.

What you control when you build

A new store lets you choose the site, the layout and the refrigeration. It also means leasehold work, equipment, permits and opening stock before the first sale. Suppliers may offer you different terms when you have no history with them. Ask contractors and your landlord for realistic timelines, and ask your accountant how long you could carry the costs before sales arrive.

Staff, ramp-up and banners

A bought store has people on the payroll from day one. A new one must hire and train before it opens. Customers need time to find a new store, while an existing one already has regulars. If you want to join a banner or buying group, ask the banner early how it treats an existing store compared with a new one. Either way you will need its approval.