How Much Does It Cost To Open A Toy Store: An Estimated Cost Evaluation

August 04, 2022

Are you planning to open your first toy store? Congratulations on thinking out of the box because not many people would like to open a toy store.

No doubt, a toy store is incredibly profitable. Also, it is easy to manage as you deal with specific products.

Nonetheless, it would help if you were considerate when you plan to open a toy store. Yes, you must understand how much does it cost to open a toy store? 

Plus, you must also understand the initial costing along with intermediate and long-term costs. Finally, it is important to know the store's decorative ideas to attract kids.

So, how much does a toy store initially cost? It will depend on the size of the store, location, type and number of toys you want to keep, and decoration. 

On average, a medium-scale toy store in a profitable business position will cost you around $17000 to $20000. Online toy stores may cost less since they don't need a physical location.

How Much Does It Cost To Open A Toy Store?

When you plan to open a toy store, you must assess the cost thoroughly. If you miscalculate the initial cost, your business can be a disaster.

So, you must consider every single expense for the toy stores.

It includes rental cost, setup amount, the money you need to decorate the store and bring the first few lots of the toys, etc. 

You may also require money for introductory advertisements to attract customers and inventory expenses for an online presence.

We considered these factors closely and talked with experienced toy store owners for this ultimate guide on the toy business

According to their suggestion and our research findings, you will need $17000 to $20000 on average to open a toy store. 

If you want to establish an online toy store, you may even do it with $2500 or less, depending on the number of toys you want at the beginning.

Now, let’s break down the costs to help you understand it better.

The rental amount for the shop:

You need to pay the monthly rental amount if you rent a shop to set up your store. In most cases, possession owners will ask you to deposit a couple of months' rent upfront as security. 

So, you must clarify with the possession owner to know the shop's monthly rent and upfront security deposit. In fact, it is the highest initial cost to set up a toy store.

Usually, you may get a toy store at around $1000 to $1500 monthly. The upfront cost will be around $5000, which sums up the initial possession cost to $6000.

As you see, it contributes almost 50% of the expense of setting up a toy store.

Decoration expense:

Although optional, good decoration will play a key role in increasing your sales in the store. So, you must never overlook the importance of proper decoration for the store.

If you have the budget, you may hire a professional interior designer for the purpose.

Or else, you can gather the decorative ideas for toy stores online. The decorative expense will largely depend on the size of your shop and the type of decoration you prefer.

Ideally, expending $2000 to $3000 is enough to decorate a mid-sized toy store. It may include wallpapers, cutouts of famous toys, etc.

Accessory cost:

Another significant expense for toy stores is the accessories you need for the shop. It may include a couple of air conditioners, LED bulbs, and chairs. 

Also, you may use decorative lights, security locks on the store door, etc.

All these accessories will cost you around $1000 to $1500. The good thing is that these accessories will help attract the customer more. 

Also, ACs, with their cooling effect, will allow the customers to spend more time in the shop. It, in turn, boosts your sales.

Inventory cost:

The inventory refers to the number of toys you will have in your store. You may initially get many toys from reputed shops on a 50% payment. 

Other manufacturers may even allow you to pay the cost for the toys later.

The larger your toy inventory, the costlier the toy store will be. So, you will need to fix a budget for it and fulfill the inventory accordingly. 

Experienced toy owners suggest you need around $2000 to $5000 for the inventory.

Advertisement cost:

When you open your shop initially, you need to spend on marketing and advertising. While you don't need big and extravagant marketing, little campaigning will be useful. 

You may offer a discount on the first few sales, distribute attractive leaflets, etc., to attract customers.

Thankfully, the initial marketing cost isn't massive. You may spend $300 to $500 on it and see how it helps grow your business. Also, the ROI for these marketing campaigns will be higher than you anticipate.

Software, email, and online presence expense:

If you want to physically and online establish your pet store, you need to pay additionally for it. You need to build inventory software to manage all your software. 

The inventory software will need $500 more or less. Plus, you need to develop your website for the store for an online presence. It includes domain name and hosting expenses which should be less than $50.

Finally, you might want to boost your store on social media. It includes Facebook and Instagram boosting, email marketing, and social media management. You should allot $200 to $300 monthly for these sectors for the first few months. Although it may seem expensive, these sectors' return on investment (ROI) is incredibly high.

Sectors Average Cost 
Shop rental and upfront deposit $6000
Decoration $2000
Inventory (toys) $5000
Accessories $1500
Software and social media$1000
Other expenses$500
Total cost (On Average)= $16500


The cost to open a toy store isn't as high as many people imagine. Unless you plan to open your store in the busiest business center or top-class shopping mall, 

you can easily set up a toy store for around $15000. Online stores will even cost less since you don't need to pay for the physical rent of the store and decorations.

So, it's high time you start your toy store to reap maximum ROI. Also, toy stores are profitable since, with each passing day, people are more attracted to toys than ever before.

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