How to Open a Retail Business in Melbourne, Australia (2025)

You can’t miss Melbourne’s metropolitan European charm that adds flavour to your cup of world-famous artisanal coffee. Melbourne being one of the most crowded and popular cities in Australia, is the best location to run a thriving retail business. 

Whether you’re an Australian or an immigrant, we can help you open a retail business in Melbourne. Before we get started, we wanted to make it clear that starting your own business can be a lot of work. Not all businesses come to fruition. 

Some entrepreneurs find success within the first few months while others might not even after years of struggle. But despite the difficulties and uncertainties, if you truly want to pursue your dream, you can definitely find success. Don’t let the failures of others scare you away. Instead, learn from them and use them as your stepping stone to achieve your dream.

Now that we’ve given you motivation, time to get down to business. Let’s begin.

Basic Requirements to Start a Retail Business

Let’s first prepare a checklist of all the basic things that you will need to start a retail business in Australia. 

1. Business Name, Structure and Plan
2. Investment Budget 
3. ABN Registration and other licences
4. Location and Lease Agreements
5. Insurance
6. Trained Staff
7. Marketing Experience

If you’re not sure what some of these points on the checklist mean, don’t worry, we’ll be discussing them in more detail below.

Steps to Start a Retail Business in Melbourne, Australia

Market Research and Planning

First thing first, to run a successful retail business, you need to do a complete market research. Identify who your target audience is and understand their preferences, needs, and purchasing behaviours. You also have to find out who your top competitors are and their business strategies. This will allow you to identify gaps in the market that you could capitalise on. 

With your research data on deck, develop a business plan outlining your business goals, strategies, and financial projections. Find out how much investment you will need and whether or not you have the required funding. 

Bonus Resource: Free Business Plan Template

Register Your Business

Once you have a business plan, think of a catchy and creative business name for your business. Then, head over to the Australian Government website and register for an Australian Business Number (ABN). Besides ABN, there will be a number of other licences and permits that you’ll have to acquire before you can start selling. Some of these include GST registration, trade mark registration, registration for licenses and permits and more. 

As for Melbourne, you can take the assessment test by the City of Melbourne and find out exactly what you need to register.

Choose a Location

The next step is to select a suitable retail space. This location should align with your business plan and have sufficient foot traffic. Negotiate lease terms with the landlord and ensure you understand all terms and conditions. 

A good location is crucial to have especially for retail business as it completely depends on the crowd. Melbourne, being one of the biggest cities in Australia, you can easily find the perfect location for your store. 

Interior Designing and Setting Up

How your retail business looks and feels makes a lot of difference in customer retention. So, make sure that your interior has a pleasant feel and reflects your brand identity. You also need to set up all the equipment, hardware and software that you’ll need. This may include shelves, scales, box cutters, internet, shopping bags, lights, seatings, desks, etc. 

Also, invest in a POS System for your retail store to streamline all your sales operations. It also provides you with a ton of features such as multi-payment support and real-time inventory management. This will help improve the overall productivity of your store and drive more sales.  

Hire and Train Staff (if necessary)

Depending upon the size of your retail business and the need for extra hands, scout for professionals who can handle your store. Make sure your staff know how to treat your customers properly as it’s the customer experience that matters the most. 

On the other hand, if you’re handling your retail business on your own, make sure to have the required tools. Tools like receipt printers, cash registers, accounting software, etc. For example, you could use Xero for your accounting tasks. Don’t know where to get all these tools from? Worry not we are a POS system provider in Melbourne and we will help you out with this. Enquire now for a free consultation. 

Source Suppliers and Inventory

Now that your retail store is ready, time to source quality products and fill up your inventory. Since you’ll be restocking constantly, make sure to find reliable suppliers who offer good quality stuff. 

Moreover, you must look for multiple suppliers and establish healthy relationships with them. This is because you cannot risk the working of your retail business with only one supplier. Look for alternatives so that you never have a stock outage in your inventory. 

Grand Opening

Give your retail store a grand opening and let all the locals know about your entry into the market. Implement grand opening marketing strategies to attract more customers. Think of a special promotion or discount that you can offer to those who visit you on the day of opening. This will incentivize even people walking by to give your business a visit. 

Marketing

The final step of successfully opening a retail business in Melbourne is marketing. The very first thing to do is set up your GMB profile and get yourself listed on Google Maps. Whether your customers use iPhones or Android phones, you want to be visible in their search results when they look for ‘something near me’. That’s what GMB is for. 

Secondly, create social media profiles on Instagram and TikTok as these are the most popular apps people use in Melbourne. You can share about your grand opening and let people know where your retail business is.

Moreover, you can implement paid advertising on Google and Social Media to reach out wider audience. Don’t know where to start from? Read our blog on strategies to increase retail sales and implement each tip for your store. 

How Much Does it Cost to Start a Retail Business in Australia?

Depending upon the size of your store, the cost to start a retail business in Australia ranges from $100,000 to $300,000. The volume of the retail products, upfront rent, and promotions and advertising will cost you the most. Besides here is the list of things you can expect to spend on:

1. Permits & Licences
2. Land Lease
3. Tech & Equipment
4. Supplies and Products
5. Employee Payroll
6. Insurance
7. Promotions & marketing

Summing Up

Yay! You made it through the full guide and now you know how to successfully start a retail store in Melbourne. Just remember that your path to entrepreneurship can be a little different given the complexity of your business. But the key to success is never giving up and persistently giving it your undivided attention. 

FAQs

What retail business is Most Profitable?

The most profitable retail business has to be the standard grocery store. This is because groceries are always in demand and you can get groceries at a really cheap wholesale price. Moreover, You can run grocery stores without any skill, in any residential area and sell what people want. 

What licences are needed to start a retail business?

You need certain licenses and registration to start a retail business in Australia. Depending upon the state/city you are opening your store, licenses and permits can vary. You have to register to get all those licenses. The most common license registrations include: 

• GST registration
• ABN registration
• tax file registration
• Fringe benefits tax registration
• Pay as you go (PAYG) registration

Head over to the Australian Business Register to get the above licenses and registration.  

How Much Do Retailers Make in Australia?

Retailers normally earn anywhere between $50k - $90 a year. However, a retail store owner can earn anywhere between $100k to $200k a year. How much retailers earn completely depends on the type and the size of the retail store.

*DISCLAIMER: This article is for general information only. POSApt does not guarantee accuracy, completeness, or specific results from following this advice. Consider consulting business professionals for tailored guidance.