What are some errors that are typically made when starting a retail business that sells luxury items? (For example wine storage units, espresso machines, etc.) Are there specific elements to consider in the retail business?

Here are 5 top errors/pitfalls when starting a new retail operations (targeting high income clientele and/or selling luxury merchandise).

1. Location
The right location is extremely important for all retail operations. This is no exception to a luxury items retailer. While the business may develop into a "destination retailer" not depended on street traffic, the right location continues to be the number one priority.

2. Targeting the right customer/Advertising/Building traffic
Once a business has the right location, it must insure it is targeting and attracting the right customer/shopper to the store. Advertising must be effective and consistent to insure a steady flow of prospect and client traffic to the store.

3. Store Layout
Store layout must not be "me too" but should preferably be creative and in line with the overall retailing strategy. Is the store attractive to the type of clientele we are targeting?

4. Merchandise Mix
The merchandise mix must be in line with the retailing strategy and the type of customer we are targeting. Because this is a start-up, frequent updates and reviews to the merchandise mix should be undertaken every quarter to insure that performance is on target and that merchandise mix is optimum. No matter how good the planning was, updates and revisions are needed. This is particularly important for luxury retailers.

5. Customer Service
Because this is a "luxury retailer", customer service must be superb and impeccable, as you will probably be dealing with a "demanding clientele".