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Profitability of retail clothing store next to fitness centers
Posted by David from Paso Robles, CA, US on March 27, 2008

Dear Jan; Perhaps you may be able to help me.. I am opening a clothing store next to a fitness center. I will be carrying outdoor active

clothing like North Face, Patagonia, etc:. I expect that many of the customers of the gym will also be my customers. In your past experiences have you noticed retail stores next to fitness stores being profitable. I have looked for this answer on the internet, but as of yet nothing. II came across this web site and thought you might help in directing me to the answer. Thanks. I will understand if I don’t get an answer.

There is precious little experience with this issue, David. In general, except in high-income-demographic clubs, retail clothing has not been much of a moneymaker when inventory-on-hand is taken into account. Even without that, published margins have been in the very low single digits.