Retail Boom
- Article 3 of 3
- Business Franchise, February 2012
Rob Buckley reports on why franchising in the retail sector is still a lucrative business
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Why did you add Subway stores to your petrol stations?
We'd tried pizza and chicken stores-in-stores with some mediocre brands. They just sold us equipment and did a runner. Then we tried a company which was quite successful, but had limited growth unfortunately, and wasn't a recognised brand. So we inquired with Subway and their training was by far the most professional we'd come across, with good back-up and support.
What are the advantages of a store-in-store?
The Subway adds value to the overall offer. Someone may come in for food at Subway and end up buying a newspaper or something else. And it works both ways - it's a very nice, symbiotic relationship.
How have your Subways fared?
The first, Brize Norton, was a great site close to a local airbase and is now in the top 10 per cent of the busiest sites in Britain. The second is in Yarnton. It's a much smaller scale, but it's very successful and healthy. Subway has been a great success for Frasers Retail and we will continue to roll out to as many stores as we can get it into.
Cash Converters
Gary Lewy opened his first Cash Converters franchise 17 years ago and now runs 11 stores in and around East London.
Why did you decide to join Cash Converters?
I was selling office equipment as part of the family business. But the downside was we were delivering to companies going bust. Then we saw what Cash Converters had to offer and that it had a strong foundation, and my dad and a partner bought in. Eventually, I bought the partner out.
How do you decide where to open stores?
You need a mix of people in the catchment area - if it's very deprived, you can buy from people but who can you sell things to?
How have you adapted to the downturn?
The emphasis is still on good customer service, but we're not just buying and selling now. We offer loans and cheque cashing and have a Western Union. The majority of shops are now 1,000-2,000sq ft when the minimum used to be 2,000sq ft.
How much of your business is now on the internet?
About 20 per cent.
How different is running a Cash Converters from running another franchise?
You need experience of buying as well as selling. You get everything from the public, so you have to decide how much to buy it for, and where and how to sell it
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