Opening a small retail store in Australia typically costs between $80,000 and $350,000+ in 2026.
A small owner-operated shop may open near the lower end if the premises already have suitable flooring, lighting and air conditioning. A store requiring a new fit-out, custom fixtures, more inventory or several employees can exceed $300,000.
The largest costs are usually the premises, fit-out, opening inventory and working capital, not business registration.
Unless otherwise stated, the commercial estimates below exclude GST.
| Store type | Indicative startup cost | Typical situation |
|---|---|---|
| Lean opening | $80,000–$150,000 | Small store, usable existing fit-out, limited inventory and owner-operated |
| Typical small store | $150,000–$300,000 | Moderate fit-out, broader stock range and some paid staff |
| Higher-spec store | $300,000+ | Premium premises, major building work, custom fixtures or extensive inventory |
These figures include an allowance for working capital. They do not cover purchasing commercial property, buying a franchise or opening an online-only business.
Startup funding should be divided into three areas:
A store is not fully funded if the owner can pay for the fit-out but has no money left for wages, rent or restocking.
| Cost category | Lean allowance | Typical allowance |
|---|---|---|
| Registration and professional setup | $500–$2,500 | $2,500–$6,000 |
| Lease deposit, advance rent and security | $8,000–$20,000 | $15,000–$40,000 |
| Fit-out and building work | $20,000–$50,000 | $60,000–$160,000 |
| Shelving, counters and displays | $3,000–$10,000 | $8,000–$25,000 |
| Opening inventory | $15,000–$40,000 | $30,000–$80,000 |
| POS, EFTPOS and technology | $800–$3,000 | $2,000–$7,500 |
| Signage and branding | $1,500–$5,000 | $3,000–$10,000 |
| Insurance, licences and compliance | $1,000–$4,000 | $2,500–$7,500 |
| Pre-opening marketing | $2,000–$7,500 | $5,000–$15,000 |
| Working capital | $20,000–$40,000 | $35,000–$75,000 |
Check exactly what each quote includes. Some fit-out quotations include counters, shelving or signage, while others cover only the building work. Adding every category without checking the scope could double-count part of the project.
The advertised rent does not show the full amount required to secure a retail premises.
Initial lease costs may include:
A basic calculation is:
Lease entry funding = rent in advance + lease security + initial outgoings + legal and approval costs
For example, a store paying $60,000 a year in rent would pay $5,000 a month before GST and outgoings. If the landlord requires one month in advance and security equal to three months’ rent, at least $20,000 may be committed before the fit-out begins.
A bank guarantee can also restrict cash flow. The bank may require the tenant to place an equivalent amount in a term deposit, preventing that money from being used for inventory or equipment.
Before signing, confirm:
There is no useful national average for retail rent. A suburban strip shop, neighbourhood centre tenancy and CBD storefront can have very different rent, outgoings and lease conditions.
Compare the total occupancy cost rather than the advertised rent alone.
Retail fit-out costs in Australia vary according to the premises and the standard of finish.
| Fit-out level | Indicative 2026 cost per m² | Typical scope |
|---|---|---|
| Basic | $700–$1,200 | Paint, basic flooring and standard fixtures while retaining existing services |
| Mid-range | $1,400–$2,300 | New lighting, counters, joinery and selected service upgrades |
| Premium | $3,000–$5,500 | Bespoke joinery, feature finishes, digital displays and major building work |
Applied to common store sizes:
| Store size | Basic fit-out | Mid-range fit-out |
|---|---|---|
| 40 m² | $28,000–$48,000 | $56,000–$92,000 |
| 60 m² | $42,000–$72,000 | $84,000–$138,000 |
| 80 m² | $56,000–$96,000 | $112,000–$184,000 |
| 100 m² | $70,000–$120,000 | $140,000–$230,000 |
The condition of the premises can matter more than its size. Fit-out costs may include:
Design, engineering, certification and council approval may be charged separately.
Shopping-centre fit-outs can cost more because of design standards, nominated contractors, inductions, restricted access and after-hours work.
Choosing premises with usable flooring, lighting, electrical services and air conditioning can materially reduce the opening cost. A contingency should still be retained for issues found during construction.
Shelving should be planned with the floor layout and product range. This determines how many bays, shelves, hooks and accessories the store needs.
Mills Shelving’s 2026 starting prices include:
| Shelving type | Starting price excluding GST |
|---|---|
| Single-sided gondola shelving | From $81.40 |
| Double-sided gondola shelving | From $146.79 |
| Wire shelving bay | From $130.59 |
| Cool-room shelving | From $301.95 |
| Additional shelves | From $9.45 each |
These are starting prices for individual units, not complete store estimates.
A full shelving budget may include:
Retailers can review our retail shelving configurations when planning wall runs and centre aisles.
“The lowest price per bay does not show the completed shelving cost. Retailers should compare the full configuration, including extra shelves, accessories, freight and installation.”
Neil Webster, CEO of Mills Shelving
The product range determines the configuration. Small packaged goods may need several shallow shelf levels. Bulky products need deeper shelves and more vertical clearance. Hanging products may need hooks or mesh backing.
Modular shelving also allows the layout to change after opening. Shelves and accessories can be repositioned when categories expand, contract or move.
Our guide to retail shelving installation costs in Australia explains the factors affecting assembly and installation.
Opening inventory depends on the product category, wholesale prices and number of products. There is no reliable average that applies to every retailer.
Calculate inventory using:
Opening inventory cost = number of SKUs × units per SKU × landed unit cost
For example:
500 SKUs × six units × $12 landed cost = $36,000
Landed cost may include:
Supplier minimum-order quantities can increase the required investment. Products may need to be ordered by carton rather than by the exact shelf quantity.
Avoid buying unnecessary stock simply to make the store appear full. Shelf spacing, product facings and the overall layout can create a complete presentation without overstocking every category.
Keep part of the inventory budget for replenishment. Early sales will show which products need more stock and which are moving slowly.
A small retail system may require:
| Equipment | Purpose |
|---|---|
| Tablet or computer | Runs the POS system |
| EFTPOS terminal | Accepts card payments |
| Barcode scanner | Speeds up transactions |
| Receipt printer | Prints customer receipts |
| Cash drawer | Stores cash |
| Label printer | Produces price and barcode labels |
| Router or backup connection | Maintains internet access |
| Inventory software | Tracks stock and reordering |
Square’s Australian retail pricing provides a current example. Its entry-level retail POS has no monthly software fee, while the Plus plan costs $109 per month per location. Its published processing rates are 1.6% for in-person payments and 2.2% for online transactions.
Separate the technology budget into:
A system with no monthly subscription may still carry significant transaction costs.
Stores selling online may also need ecommerce software, product photography, website development, shipping integrations and packaging. Shopify’s Australian Basic plan currently starts at $42 per month when billed annually, while POS Pro costs an additional $129 per month per location.
The POS should support the store’s inventory requirements. Useful functions include stock counts, purchase orders, product variants, low-stock alerts, margin reporting and online inventory synchronisation.
Current 2026 registration costs include:
| Registration | Cost |
|---|---|
| Australian Business Number | Free |
| Business name for one year | $47 |
| Business name for three years | $108 |
| Proprietary company registration | $636 |
| Standard trade mark application | From $250 per class |
Accountant and solicitor fees may cost more than the registrations themselves. Professional assistance may be needed to select a business structure, establish bookkeeping and review the lease.
A business must generally register for GST when its turnover reaches, or is expected to reach, $75,000 a year.
A GST-registered retailer may claim credits for GST paid on eligible purchases. However, that GST must still be funded before the credit is received.
Retail licence requirements depend on the products, location and premises. They may include:
Check the Australian Business Licence and Information Service before signing the lease.
A retailer may need:
The lease may specify minimum insurance requirements. Premiums depend on the products sold, turnover, stock value, security and location.
From 1 July 2026, General Retail Industry Award Level 1 rates include:
| Working period | Minimum hourly rate |
|---|---|
| Full-time or part-time ordinary hours | $27.81 |
| Casual ordinary hours | $34.76 |
| Casual weekday after 6 pm | $41.72 |
| Casual Saturday | $41.72 |
| Casual Sunday | $48.67 |
| Casual public holiday | $69.53 |
Employers must also pay 12% superannuation in 2026–27.
A Level 1 employee working 38 ordinary hours each week would cost approximately:
This excludes workers compensation, recruitment, training, leave coverage, uniforms, overtime and penalty rates.
Calculate staffing from the complete roster, including opening, closing, breaks, deliveries, weekends and absences.
An owner-operated store can reduce its early wage bill. However, the business should eventually be able to pay for the labour required to operate it.
Indicative Australian signage costs in 2026 include:
| Signage | Indicative cost |
|---|---|
| Window vinyl or lettering | $150–$600 |
| Basic fascia panel | $400–$1,200 |
| Full shopfront fascia | $1,200–$3,000 |
| Illuminated light box | $900–$3,500 |
| Full illuminated shopfront | $5,000–$15,000+ |
Additional costs may include design, council approval, electrical work, access equipment and installation. Obtain landlord and council approval before manufacturing the sign.
An opening marketing budget may cover:
Set this allowance before completing the fit-out budget. Do not rely solely on any cash left before opening.
Working capital covers expenses while sales develop.
Calculate it using:
Working capital = monthly operating costs × reserve period + stock replenishment
Three months of essential expenses is a reasonable starting point. Stores with seasonal sales or long supplier lead times may need more.
Include:
For example:
| Monthly expense | Allowance |
|---|---|
| Rent and outgoings | $6,000 |
| Wages and super | $8,000 |
| Utilities and communications | $1,000 |
| Insurance and software | $750 |
| Marketing | $1,500 |
| Other operating expenses | $1,250 |
| Monthly total | $18,500 |
Three months would require $55,500. If $12,000 is also needed for inventory replenishment, the required reserve becomes $67,500.
Keep this money separate from optional fit-out spending.
| Cost category | Example allowance |
|---|---|
| Lease entry costs | $18,000 |
| Basic fit-out at $900 per m² | $54,000 |
| Shelving and displays | $10,000 |
| Opening inventory | $35,000 |
| POS and technology | $3,000 |
| Signage | $4,000 |
| Registration, advice and insurance | $4,000 |
| Opening marketing | $6,000 |
| Three-month working capital | $30,000 |
| Total startup funding | $164,000 |
This example assumes:
The fit-out rate has a major effect:
| Fit-out rate | Cost for 60 m² |
|---|---|
| $700 per m² | $42,000 |
| $1,200 per m² | $72,000 |
| $2,000 per m² | $120,000 |
The startup total could therefore change by tens of thousands of dollars depending on the premises.
The best opportunities are usually found in the premises, lease and inventory.
Do not make unsafe or short-term reductions to:
Confirm the floor plan before ordering fixtures. Check aisle widths, checkout placement, customer flow and display capacity. Our retail store layout statistics provide further information on using retail space effectively.
As a practical 2026 guide:
Before committing to a lease, calculate the complete cost of:
Mills Shelving recommends planning the shelving configuration at the same time as the product range and floor layout. This provides a more accurate equipment budget and reduces the risk of buying fixtures that do not suit the store’s stock, aisles or future merchandising needs.
