How to Open a Luxury Department Store

Starting and owning a luxury department store is far different from operating a traditional store. It requires a strong marketing and advertising effort in order to attract and hold a picky and niche market.

Anyone wanting to open a luxury product store needs every help he can get. So here’s a basic guide that will tell you some ideas to consider before starting a luxury department store.

Starting and operating a luxury department store that carries world renowned brands and pricey items like Chloé, Louis Vuitton, and Cartier is a major and complex undertaking. It is different from operating a traditional store in that it is highly specialized to an elite market. Finding a market of “high-end product” lovers in is a feat enough. It should be a result of extensive and serious marketing study. Attracting such market to the store requires even more effort and keeping that market could feel like holding on to something elusive. As a whole a luxury item business requires non-traditional marketing and advertising strategy in order to click. In addition, such specialized business could prove very sensitive to many factors affecting it, like changes in economy, tastes, and trend.

So if you want to start a luxury store. Consider these items:


Be absolutely sure that your luxury items -- high-tech gadgets, apparel, cosmetics -- have a market in your chosen location. Most luxury shops are located in big cities where brand usually matters and more people have extra income to splurge on cutting-edge products. And market in this line of business does not mean something general.

Supply and Supplier:

Some luxury lines are entirely owned by the company. It does not allow retailers to distribute their products to impart the exclusivity factor that adds allure to the brand. Others let retailers do the distribution, allowing high prices to set it apart from run-of-the-mill items.

Know what items you can obtain and sell and what you cannot. You would most likely have to deal with brand distributors. And this is not something easy. Getting a business relationship with such dealers could require a reputation, prior business relationships and connection. It would help greatly if you have been in the same line of business for some time such that you already know your way around and they already know you too.

Store Format:

This speaks a lot and could do a lot. A luxury item department store is valued a great deal for the ambiance it provides and image it projects. A big part of the thrill in acquiring top of the line products is visiting and lounging on a posh department store.


This should not be elaborated. For all these classiness, you definitely need a lot of cash, particularly for inventories, and store enhancement.

Business Plan:

A solid business plan is needed to acquire funding. It is also needed to enter into business relationships with suppliers.


  • ramesh nadar said on June 19, 2010
    sir i plan to start an department store in my place. please guide me and tell me what should should i follow. is the terms and conditions. thanking you
  • kavitha said on August 6, 2010
    sir, what are the things to need on small departmental store.
  • shree said on August 7, 2010
    I believe hard work, smart work pays off at all times. It is only important fr us to identify right market.I propose to open small retail dep store in coimbatore tamil nadu. is it a wise move
  • vinoth said on January 4, 2012
    How to open a people welfare departmental stores in coimbatore. Tamilnadu. India
  • G.Premavathy said on April 28, 2013
    I want to open a retail departmental store near my home town. Kombai or Uthamapalayam at Theni District Tamilnadu State in India. I don't no how much money to invest and how I select the place and every thing. Can you please guide me. Thanks
  • GunaSekaran said on July 5, 2013
    I want to open a department store in punnam chattiram in Karur. How much investment. I plan to build an own building. Tell what are the requirement I need.
  • Balagopal said on August 19, 2013
    Dear sir, I want to open the departmental store n my place what are the rules and regulations
  • sureshkumar said on September 15, 2013
    dear sir i want to open the small departmental store my place what are the rules and regulations and how much investment then market systems is the terms and conditions
  • sudhan said on December 29, 2013
    sir i want to know rules and regulations, to start a departmental store and the investment that needs to start d business....
  • venkates said on January 11, 2014
    Hello sir i want to start departmental store i don't know how much to invest. regulation systems than conditions
  • Ramesh verma said on January 15, 2014
    i want open a departmental store in agra up india how to?
  • sathish NS said on January 22, 2014
    i want to start new departmental store i don't know how much invest & regulation system then conditions....
  • EK Turner said on May 16, 2014
    Hello, i would like to start a department store in Atlanta, Georgia USA. How can i find investors and how much do i have to invest? thanks
  • manivannan.T said on June 9, 2014
    sir, i open in departmental store my place tell me some detail sir. how to purchase in materials
  • RISHI RAWAL said on July 18, 2014
  • M Raju said on October 6, 2014
    Sir, I want to Open new Departmental store in Tirupur. Can u Help me for How to start and purchase ideas, How much do i have to invest..??? Thank you...
  • EK Turner said on February 19, 2015
    Hello, i would like to start a department store in Atlanta, Georgia USA. How can i find investors and how much do i have to invest? thanks
  • Rovi Resu said on April 24, 2015
    I want to start departmental store in Senapati District, Manipur North East India. Please advice. Regards
  • Ajay Sehgal said on May 21, 2015
    Dear Sir, Greetings! It is very encouraging to know about this site. I have a space of 1400 Sq feet ground and 1700 sq feet space in the basement at a very good commercial three side open space surrounded by residential colony in Janakpuri, New Delhi-110058. I want to open up one Departmental store for food items, groceries and general household products and one small corner for fresh bakery. Request you to kindly help me in this project. Kindly provide me following information if possible.
    1. A project report or business plan if you already have.
    2. Investments and what should be the working capital which is required to run the store efficiently.
    3. What is the average margin and return on investment?
    4. List of all distributors and suppliers and C&F's in west Delhi.
    5. What are the different types of licenses which are required?
    6. How much time does it take to fully operational the store.
    7. What kind of accounting and billing system to be installed.
    Thanks and Best Regards, Ajay
  • Ravisankar D said on January 27, 2016
    I would like to start a departmental store in Perur, Coimbatore, Tamilnadu. Please mail us the following details. a)sample project report or business plan b)Procedure and required license and approval. c)Software to be used d)Items & supplier list
  • kamalpreet singh said on July 14, 2016
    hello sir, i would like to start a departmental store in delhi. request you to kindly help me in this project.
    *require working capital
    *where is the best place to open and further detail also...
    regards , kamal
  • muthu said on January 3, 2017
    Sir, i have small dapartment store in my place, so i don't known how to get stocks? Pls guide me. thank you. Any supplier contact ?
  • Yamaha bilikisu said on November 12, 2017
    I have a problem writing my business plan especially when it comes to explaining the capital needed and I want a luxury store. I dont even know how to get investors


    (All the above fields are required.)