Help in store for retailers (Daily Mail franchise story)

posted on 01-Dec-2008

Help in store for retailers


Daily Mail

By: Linda Whitney

NOT ALL retailers are feeling the credit crunch — some are thriving and even expanding.

If you want to set up in retail, a franchise, with backup from an experienced company, often makes more sense than going it alone.

At Cash Generator, the High Street buy, sell and loan store, retail sales are up nearly 5per cent, cheque cashing by 13per cent and pawnbroking by more than 100 per cent.

Julian Urry of Cash Generator says: 'The challenging economic conditions are ideal for our business.' He is planning to open 20 new stores next year and looking for new franchisees with £70,000 to invest.

Cash Converters, another pawnbroker and lender, is also looking for franchisees with previous business experience.

A large store franchise is £240,000 and a mini-store £140,000. New franchise The Satellite Shop is expecting growth as cash-strapped people stick to entertainment at home. As well as electrical entertainment goods, the company sells digital aerials ready for the digital switchover in 2012.

Investment is £40,000.

Fair-trading enthusiasts could consider Shared Earth, the fair-trading goods chain.

You need a retail, management or services background, and training includes a visit to an overseas producer.

Investment is £73,700.

Ask what help franchisors will provide with marketing.

'We have just launched a new national marketing campaign to support our 19 franchised outlets,' says Paul Crow of bathroom showroom franchise Ripples.

Investment as a franchisee is £40,000.

One benefit of starting up as a franchise is that franchisors can usually negotiate lower wholesale prices than you might get as an independent store.

Craig Johnston of Nevada Bob's, the golf retail franchise, says: 'We negotiate deals on behalf of our 24 franchised UK outlets, so franchisees benefit from better prices.' Nevada Bob's is offering franchises at £60,000.

With location one of the most important factors in retail, convenience store franchise Budgen can help you assess suitable sites, whether you are planning a new store or want to rebrand an existing retail outlet.

There is no joining fee for a Budgen franchise, but you must pay for fitting out the store, as the company makes its money on the sale of stock.

Sister franchise Londis is looking for existing retailers to rebrand. The £31-a-week basic fee includes deliveries, and you can also buy packages including help with marketing and business development..


CASK BUSINESS TAPS STRONG DEMAND


WHEN Lynne Booth and Diane Hough decided to go into retail, they found the ideal location first and then looked for a product they could fall in love with.

Now they run the Vom Fass shop, selling oils, vinegars, spirits and wines from the cask at Trentham Shopping Village on the Duke of Sutherland's Trentham Estate in Staffordshire. 'The high quality of the  Vom Fass products fitted perfectly with the upmarket quality of the location,' says Lynne, 45, (above left with Diane).

Vom Fass shops offer a range of speciality products in a collection of attractive bottles that can be returned for refilling, plus gift packs that can be made up to customers' requirements.

The two women also run tasting evenings, when Diane offers recipes for special menus that are cooked using store ingredients. 'It is essential you have the right location and a real passion for the products, because your enthusiasm comes across to customers and helps boost sales,' says Lynne.

The shop has been so successful that Lynne and Diane are planning to open a second one after Christmas.

Vom Fass is expanding and looking for more franchisees with £70,000 to £100,000 to invest. It also offers a gourmet chocolate shop franchise, Bouquet de Chocolat, which offers chocolate bouquets. Investment is £25,000-£30,000.