Average Net Profit Margins
A good margin will vary by industry, but a 10% net profit margin is average, a 20% margin is high, and a 5% margin is low.
Top Retail Business Ideas
- GymShark, selling fitness apparel, is one of the most profitable Shopify stores with over $1.45 billion USD net worth. In 2019, GymShark sold 11 million units and generated over $308 million USD in revenue.
- Retail businesses are medium scale ideas that help start profitable low cost local businesses with medium capital investment.
Online Sales and E-commerce Trends
- Selling online is predicted to reach 2.1 billion customers in 2021, with 18-34 year olds spending an average of $2,000 annually.
- Selling skincare products, digital products, and offering training are some of the most profitable online businesses.
- Influencer marketing is also increasingly popular, though market saturation must be considered.
Specialty Retail Stores
- Bubble tea shops are unique and increasingly popular with low competition compared to coffee shops.
- The most profitable malls globally are ranked by sales per square foot. Westfield Garden State Plaza in New Jersey ranks #16 with $950 sales per square foot.
- Auto accessories stores are a profitable retail business in the automobile sector.
- Beauty salons and bridal stores focused on specialty wedding attire are also lucrative retail opportunities.
Profitable Large Retailers
- Walmart’s online marketplace competes with Amazon and eBay, with over 400 million monthly visitors.
- Grocery stores are needed worldwide and can be very profitable if competition is limited.
Most Profitable Store Types and Sales
- Walmart is the number 1 retail store. Walmart had over $500 billion in retail sales in 2018. After Walmart, Amazon, Costco, Kroger and Home Depot made the most retail sales.
- An example of a profitable small shop is the Apple Store selling Apple devices and accessories which is one of the most profitable store chains in the USA.
- Walmart tops this ranking, with 14% of the retail market equating to around $556 billion in sales in 2021.
- Retro game stores can also be profitable. By implementing a buy-sell program and loyalty cards you can generate additional profit.
Retail Sales Data
- On average, a retail store may generate several hundred to a few thousand dollars in sales per day.
- Kroger Co. is the world’s largest supermarket chain, with $119.0 billion in retail revenue in 2017.
- Amazon is on track to surpass Walmart as the largest U.S. retailer by 2022, according to JPMorgan analysts.