As the economic recession continues, many Americans are cutting back on the purchase of non-essential items. As a result of consumers spending less, and department, clothing, and other specialty stores are finding the current economic client tough to survive.

Today’s consumer is looking for frugal options to help them manage their shrinking household budget. On our site, we closely monitor the types of new store openings being registered through our retail startup calculator and new store opening guide sign up forms. At NewStoreOpening.com, we were not surprised to find that the most popular store types being opened are dollar/discount and thrift/consignment stores. The most critical decision a new retail business owner may make is no longer location but instead what type of store to open.

According to a recent online article from Retail Traffic Magazine, it is estimated that 12,000 to 14,000 retail stores are predicted to close in 2009. While this data may act as a deterent to many individuals or companies planning to open a retail store, many others will see this as an opportunity to jump into the retail market.   With vacancy rates expected to reach up to 17% in 2009, many landlords with an abundance of empty retail space will feel the pinch. Existing retail businesses should consider renegotiating their current lease. For many who are opening new stores, you will be able to find space available with more attractive lease rates and options than are typically found.  Don’t be afraid to ask for extra incentives to sign your lease, many landlords will be more than happy to do what is necessary to finalize a deal.

Always Select Point of Sale Software First

Retail businesses that are planning to buy a POS system often make the mistake of purchasing POS hardware before POS software. The selection of your POS software is the most important aspect of purchasing a point of sale system. The POS software you choose must take into account how you do business and provide all of the functionality that your type of retail store requires. For example, many store types such as consignment/thrift stores have a number of industry point of sale software packages specifically designed for that type of business.

It is also critical to understand that not all point of sale software and hardware are compatible. Make sure to buy your point of sale software first and then select hardware from the approved hardware vendor list provided by your point of sale software developer. In addition, selecting a point of sale software that is easy to use is important. Many POS software companies offer free demo programs, inquire about how you can test out their pos software.

How Will You Process Credit Cards?

Most point of sale software companies have options for selecting integrated payment processing or have established relationships with payment processing vendors their software is authorized to work with. Not all point of sale software and credit card processing vendors are compatible either, so ask your point of sale software provider who they recommend for payment processing. And remember, credit card processing is a competitive industry, so make sure you compare rates and fees to ensure you are getting the most affordable processing rates and fees possible.

After Sale Support and Hidden Costs

What happens when your point of sale system crashes? Do you have a local point of sale reseller that offers fast and reliable phone or onsite technical support? Do you know what they offer in terms of typical response time, replacement units, or repair capabilities?

While getting a down POS system up and running is critical, it is also important to understand what the total cost of ownership is for your point of sale system. The original purchase price is one aspect of the total cost, but the ongoing maintenance and service costs must be accounted for as well. Make sure your contract clearly states what your rates are for technical support and repair services.

Don’t Wait

While many new retail store owners are busy tackling a number of issues before opening day, training and implementation of point of sale and credit card processing technology often gets pushed to the back of the to do list. Make sure you set aside ample time to do training and testing with your employees before your store opens. Nothing will deter repeat business more then not being able to check out waiting customers!