This article was written by our expert who is surveying the industry and constantly updating the business plan for a retail store.
Starting a retail store requires significant capital investment across multiple expense categories, from securing commercial space to building out your sales floor and stocking inventory.
Understanding the specific costs involved in launching a retail business helps you avoid undercapitalization and budget accurately for the first critical months of operation. This comprehensive breakdown covers every major startup expense you'll encounter when opening a retail store in 2025.
If you want to dig deeper and learn more, you can download our business plan for a retail store. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our retail store financial forecast.
Launching a retail store in a major urban location requires total startup capital ranging from 10 to 25 million THB for a 100 square meter space.
The largest expenses include renovation and fit-out work, which can cost between 5.3 to 17.5 million THB depending on your brand positioning and design requirements.
| Expense Category | Cost Range (THB) | Key Details |
|---|---|---|
| Lease Deposit & Advance Rent | 1,200,000 - 4,800,000 | Covers 3-6 months deposit plus one month advance for 100m² space in prime location |
| Renovation & Fit-Out | 5,300,000 - 17,500,000 | Complete store build-out including flooring, lighting, HVAC, and brand-specific design elements |
| Fixtures & Display Equipment | 250,000 - 800,000 | Shelving, display units, mannequins, and modular retail furniture systems |
| Initial Inventory Stock | 400,000 - 1,200,000 | First 3-6 months of product inventory including delivery fees and logistics costs |
| Technology & POS Systems | 80,000 - 280,000 | Complete point-of-sale hardware, software licenses, and networking infrastructure |
| Pre-Opening Staff Costs | 500,000 - 2,500,000 | Salaries, training, uniforms, and benefits for 3-6 months before profitability |
| Working Capital Reserve | 1,500,000 - 4,000,000 | Operating expenses cushion covering rent, utilities, payroll, and inventory restocking |
| Marketing & Launch | 150,000 - 500,000 | Signage, digital marketing, opening events, and promotional materials |
| Licenses & Legal Setup | 50,000 - 200,000 | Business registration, permits, inspections, and regulatory compliance costs |
| Professional Services | 80,000 - 250,000 | Accountants, lawyers, consultants for business setup and financial systems |
What does it cost to lease or purchase retail space, including all initial deposits and fees?
Securing retail space in a prime urban location requires an initial outlay of 1.2 to 4.8 million THB for a 100 square meter store, covering security deposits and advance rent payments.
Monthly lease rates in central business districts and shopping malls range from 4,000 to 8,000 THB per square meter, with outer zones typically falling toward the lower end of this range. For a standard 100m² retail space, this translates to monthly rent between 400,000 and 800,000 THB.
Landlords in major urban centers typically require a security deposit equivalent to 3-6 months of rent, plus one month's rent paid in advance before you receive keys to the space. This upfront payment structure protects property owners while ensuring you have legitimate commitment to the location.
Purchasing retail space outright is uncommon in top urban centers due to extremely high per-square-meter prices that generally exceed the equivalent of many years of rental costs. Most retail entrepreneurs opt for leasing arrangements that preserve capital for operations and inventory.
What are typical renovation and fit-out expenses for a retail store?
Retail store renovation and fit-out costs range from 5.3 million to 17.5 million THB for a 100 square meter space, depending on your brand positioning and design complexity.
Mainstream retail stores typically spend between 53,000 and 99,000 THB per square meter on fit-out work, which covers basic flooring, partition walls, lighting systems, and HVAC installation. These costs create a functional retail environment that meets operational requirements without excessive design flourishes.
High-end brand stores or luxury retail concepts can easily exceed 175,000 THB per square meter when incorporating premium materials, advanced lighting design, specialized display systems, and sophisticated climate control. The fit-out budget directly impacts how customers perceive your brand quality and positioning.
Additional expenses often arise from landlord-mandated specifications, building code compliance requirements, and unexpected structural issues discovered during construction. Smart retail operators budget an extra 10-15% contingency for these inevitable adjustments and change orders during the fit-out phase.
You'll find detailed market insights in our retail store business plan, updated every quarter.
How much should I budget for retail fixtures, shelving, and display equipment?
Furniture, fixtures, and display equipment for a 100 square meter retail store typically cost between 250,000 and 800,000 THB depending on quality, modularity, and brand-specific requirements.
Basic retail fixtures include wall-mounted shelving systems, freestanding display units, product tables, mannequins, and signage holders that create your merchandising infrastructure. Modular fixture systems cost more initially but offer flexibility to reconfigure your floor plan as product lines evolve or seasonal displays change.
Digital displays, interactive kiosks, and technology-integrated fixtures push costs toward the upper end of the range but can significantly enhance customer engagement and sales conversion. Modern retail increasingly blends physical and digital experiences through smart fixtures that connect to inventory systems and customer apps.
Custom-designed fixtures built specifically for your brand identity add 20-40% to standard fixture costs but create distinctive visual merchandising that differentiates your store from competitors. The investment in quality fixtures pays dividends through improved product presentation and enhanced shopping experience.
What are startup inventory costs for the first three to six months of retail operations?
Initial inventory investment for a retail store ranges from 400,000 to 1,200,000 THB for a medium-sized shop, representing approximately 20-40% of projected sales for the first 3-6 months.
| Inventory Category | Cost Range (THB) | Key Considerations |
|---|---|---|
| Core Product Stock | 280,000 - 840,000 | Main product lines that represent 70-80% of expected sales volume across multiple size/color/style variations |
| Seasonal & Trending Items | 60,000 - 180,000 | Fashion-forward or time-sensitive inventory that capitalizes on current trends but carries higher obsolescence risk |
| Opening Promotional Stock | 40,000 - 120,000 | Special launch offers and loss-leader items designed to drive traffic during grand opening period |
| Delivery & Logistics Fees | 20,000 - 60,000 | Freight costs, customs clearance (for imported goods), and last-mile delivery charges adding 5-10% to product cost |
| Safety Stock Buffer | 40,000 - 120,000 | Additional inventory cushion preventing stockouts during demand spikes or supplier delays in early operation phase |
Product category significantly impacts inventory requirements—fashion and apparel typically demand higher initial investment due to size/color variations, while electronics or home goods may require less variety but higher per-unit costs. Payment terms with suppliers also affect cash flow, with some offering 30-60 day terms that reduce immediate capital requirements.
This is one of the strategies explained in our retail store business plan.
What costs are involved in obtaining licenses, permits, and passing inspections?
Licensing, permits, and regulatory compliance for a retail store typically cost between 50,000 and 200,000 THB, with significant variation based on product category and location.
Basic business registration and general retail licenses form the foundation, but specialized permits increase costs substantially for stores selling food products, health items, electronics, or age-restricted goods. Each product category carries specific regulatory requirements that trigger additional inspection fees and compliance documentation.
Fire safety inspections, building occupancy permits, health department clearances, and signage approvals each carry separate fees that compound during the pre-opening phase. Municipal authorities in different districts maintain varying fee structures and processing timelines that impact your launch schedule.
Professional assistance from consultants who navigate the permit process efficiently can save weeks of delays and prevent costly mistakes in application submission. While adding to professional services costs, this expertise ensures you open on schedule without regulatory obstacles blocking your launch date.
How much should I allocate for POS systems and retail technology infrastructure?
A complete point-of-sale system and technology infrastructure for a small to medium retail store costs between 80,000 and 280,000 THB, covering hardware, software, and networking requirements.
Modern POS systems include touchscreen terminals, barcode scanners, receipt printers, cash drawers, and card payment terminals that integrate with inventory management and customer relationship management software. Cloud-based POS solutions offer lower upfront costs through subscription models but create ongoing monthly expenses that accumulate over time.
Network infrastructure including reliable internet connectivity, Wi-Fi systems for staff devices, security cameras, and backup power solutions protect operations against technical disruptions. Investment in robust technology prevents lost sales during system failures and provides data insights that optimize inventory and staffing decisions.
Software licenses for inventory management, accounting integration, customer loyalty programs, and e-commerce synchronization add ongoing costs but create operational efficiency that reduces labor requirements. The technology stack you choose should scale with business growth without requiring complete replacement within 3-5 years.
What are typical utility and insurance setup costs for a retail location?
Utility deposits and insurance setup for a retail store total approximately 50,000 to 180,000 THB, covering connection fees, advance deposits, and first-year insurance premiums.
- Electricity connection and deposit: 10,000 - 40,000 THB depending on estimated consumption and meter installation requirements
- Water service activation: 2,000 - 8,000 THB for connection fees and security deposits
- Internet and telecommunications: 5,000 - 20,000 THB for business-grade fiber installation and equipment
- Property insurance (fire, theft, damage): 15,000 - 50,000 THB annual premium based on inventory value and location risk
- Liability insurance: 10,000 - 40,000 THB annually protecting against customer injury claims and product liability
- Business interruption insurance: 8,000 - 22,000 THB optional coverage replacing lost income during forced closures
Many insurance providers require advance payment of 3-6 months premium at policy inception, increasing initial cash requirements before coverage begins. Bundling multiple insurance policies with one provider typically reduces total premium costs through multi-policy discounts.
How much should I reserve for marketing, signage, and launch promotions?
Marketing, signage, and grand opening promotions for a retail store require a budget between 150,000 and 500,000 THB to generate adequate awareness and traffic during the critical launch period.
Exterior signage including storefront letters, illuminated signs, and window graphics typically consume 40,000 to 120,000 THB depending on size, materials, and installation complexity. High-traffic locations with premium visibility justify increased signage investment that captures passing foot traffic and builds brand recognition.
Digital marketing campaigns across social media platforms, search engines, and local directory listings require sustained spending of 30,000 to 100,000 THB during the first three months to build awareness and drive store visits. Content creation including photography, video, and graphic design adds additional costs but creates reusable marketing assets.
Grand opening events, promotional giveaways, influencer partnerships, and launch discounts generate buzz but quickly consume budget through product costs, entertainment expenses, and promotional pricing that reduces initial margins. The marketing investment during launch establishes brand presence and acquires first customers who become repeat buyers and word-of-mouth advocates.
We cover this exact topic in the retail store business plan.
What are anticipated staff costs including salaries, benefits, and training before profitability?
Pre-profitability staff costs for a retail store range from 500,000 to 2,500,000 THB covering 3-6 months of salaries, mandatory benefits, training, and onboarding expenses before the business reaches breakeven.
| Staff Category | Monthly Cost (THB) | Responsibilities & Requirements |
|---|---|---|
| Store Manager | 35,000 - 65,000 | Overall operations, inventory management, staff supervision, sales reporting, customer service oversight, and P&L responsibility |
| Assistant Manager | 25,000 - 40,000 | Manager support, shift supervision, staff scheduling, vendor coordination, and operational troubleshooting |
| Sales Associates (3-5 staff) | 45,000 - 100,000 | Customer service, product knowledge, sales transactions, merchandising, stock management, and floor maintenance |
| Cashier/Stock Personnel (2-3 staff) | 30,000 - 60,000 | POS operations, cash handling, inventory receiving, stock replenishment, and back-office organization |
| Social Insurance & Benefits | 15,000 - 35,000 | Mandatory employer contributions (5% of salary), health insurance, and employee welfare fund requirements |
| Training & Onboarding | 20,000 - 50,000 | Product knowledge training, POS system instruction, customer service protocols, brand standards, and safety procedures |
| Uniforms & Equipment | 10,000 - 25,000 | Staff uniforms, name badges, communication devices, safety equipment, and personal protective items as required |
Retail businesses must budget for full staffing 2-4 weeks before opening to complete training, practice operations, and conduct soft opening trials that identify issues before the official launch. This pre-opening payroll period represents pure cost without offsetting revenue but ensures staff competency when customers arrive.
How much working capital is needed to cover the first 3-6 months of operating expenses?
Working capital reserves for a retail store should cover 1.5 to 4 million THB to sustain operations through the first 3-6 months before reaching consistent profitability.
Monthly operating expenses during the ramp-up phase include rent (400,000-800,000 THB), payroll (180,000-365,000 THB), utilities (15,000-35,000 THB), marketing (20,000-60,000 THB), and inventory replenishment (100,000-300,000 THB). These recurring costs continue regardless of sales performance during the critical early months.
New retail stores typically operate at 30-50% of projected sales capacity during the first month, gradually building to 70-80% by month three as brand awareness grows and customer base expands. This sales ramp-up period creates a cash flow gap between expenses and revenue that working capital must bridge.
Seasonal businesses face extended working capital requirements, with stores launching before slow seasons needing 6-9 months of reserves rather than the standard 3-6 months. Underestimating working capital needs forces owners to inject additional personal funds or seek emergency financing at unfavorable terms when cash runs short.
It's a key part of what we outline in the retail store business plan.
What professional service fees should I expect for legal, accounting, and consulting support?
Professional services including legal setup, accounting systems, and business consulting typically cost between 80,000 and 250,000 THB during the startup phase of a retail operation.
Legal services for business entity formation, lease review, employment contracts, and terms of service documentation range from 30,000 to 80,000 THB depending on business structure complexity and negotiation requirements. Attorneys experienced in retail operations prevent costly mistakes in lease terms that could burden the business for years.
Accounting setup including chart of accounts creation, bookkeeping system implementation, tax registration, and initial financial reporting procedures cost 25,000 to 70,000 THB for proper establishment. Investing in correct financial infrastructure from day one prevents expensive corrections and ensures accurate management reporting.
Business consultants specializing in retail operations, market analysis, site selection, and operational procedures charge 25,000 to 100,000 THB but accelerate launch timelines and improve operational efficiency from opening day. Their expertise helps avoid common pitfalls that derail inexperienced retail entrepreneurs during the challenging first year.
Are there hidden or variable costs that could significantly impact my retail startup budget?
Hidden and variable costs frequently add 10-15% to the total retail startup budget through unexpected expenses and sector-specific requirements that emerge during the launch process.
Fire safety equipment upgrades, emergency lighting systems, and exit signage modifications often become mandatory after building inspections, adding 30,000 to 100,000 THB in unplanned expenses that delay opening until completed. Older buildings particularly trigger retrofit requirements that weren't apparent during initial site selection.
Landlord-imposed design standards or building management rules may mandate specific renovation approaches, materials, or contractors that exceed your original fit-out budget by 15-25%. Shopping mall locations especially enforce strict aesthetic guidelines and construction protocols that inflate costs beyond typical commercial spaces.
Rush fees and overtime charges accumulate quickly when construction delays compress timelines before your planned opening date, potentially adding 20-40% to contractor costs. IT system integration problems, incompatible software, or cybersecurity requirements frequently emerge during technology deployment, requiring additional vendor support and custom solutions.
Initial marketing campaigns may underperform requiring pivot investments in influencer partnerships, local events, or promotional discounts that weren't originally budgeted. Product-market fit challenges can necessitate inventory write-downs if initial purchasing decisions don't align with actual customer preferences, creating unexpected losses before operations stabilize.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Launching a retail store requires comprehensive financial planning across numerous expense categories that extend well beyond simple rent and inventory costs.
The total startup investment of 10-25 million THB for a 100 square meter urban location reflects the complex infrastructure needed to create a functional, attractive retail environment that attracts customers and supports profitable operations from opening day.
Sources
- The Nation Thailand - Retail Space Analysis
- DD Property - Bangkok Retail Space Listings
- Cushman & Wakefield - Fit-Out Cost Guide 2025
- Weilin Retail - Shop Fitting Cost Breakdown
- Total Fitouts - Commercial Fit-Out Costs 2025
- JLL - APAC Fit-Out Cost Guide 2025
- Gia Long - Shop Interior Design Costs
- Krungsri Research - Retail Space Outlook 2025-2027
- Felbro Displays - Retail Display Trends 2025
- CBRE Thailand - Bangkok Retail Lease Guide
