Investing in a retail franchise is a great way to combine business ownership with support and speedy profitability. As a franchisee, you’ll be equal parts protected and independent. Read on, and discover everything you need to know if you’d like to start running a franchise in the retail sector in 2022.
Before you make a career change with a retail franchise, it’s important that you gain a clear understanding of where the industry is in 2022, and where it’s likely to head in future. Which retail trends are dominating conversation? Which trends are just now beginning to emerge? Where is the industry right now, and where might it be in a year, or five, or ten? The more you know, the more you’ll know your investment was a sound one.
The retail industry in 2022
If you’re looking to start your own retail franchise in the near future, you’ll be pleased to know that the vast sector still has plenty of room for you. Retail sales figures are already recovering nicely from the impact of COVID-19 [Office for National Statistics], and the huge amount of competition in the industry is met with an equally huge amount of demand. Plus, there are so many different sub-sectors that you’re essentially guaranteed to find an investment option that perfectly suits you.
Despite experiencing setbacks in 2020 due to the coronavirus (COVID-19) pandemic, the retail industry in the United Kingdom (UK) grew consistently for more than a decade. With a gross value added (GVA) of over 92 billion British pounds in 2019, the retail sector is an important contributor to the UK economic landscape.
- P. Smith, Statista
The future of the retail sector for those planning to start a retail franchise
Retail sector trends just now beginning to emerge reveal that the future of the industry is increasingly digital - or at the very least, omnichannel and digitally integrated, offering customers online and offline options. While the future of retail might look different (more technologically advanced, for one), it certainly looks bright.
A quick note: Before you go ahead with a retail franchise investment, be sure to conduct more specific research into the niche areas that most interest you (and into their long-term viability and profitability). Look into the past performance of the sub-sector, and remember that a short-term craze does not equal a long-term demand.
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The biggest advantages of running a retail franchise
The advantages of running a retail franchise are many and various, even distinct from the general advantages of franchising (training and support provision, the benefits of an existing brand name, the endless room to grow within a supportive framework, the proven business model, and so on). The biggest pros to life as the owner of a retail franchise are:
- Low-cost investment options with huge growth potential are readily available to you
- You’ll enjoy a varied, dynamic and exciting working life running a retail store
- You’ll be able to set your own hours and be your own boss
- You’ll have the chance to build and lead a trusted team of employees
- You can capitalise on changing customer wants and needs easily, swapping out stock
- You’ll have room to be creative, from marketing in new ways to setting up displays
Franchising opportunities in the retail sector
If retail is definitely the right sector and you understand what it takes to run your own retail franchise, it’s probably time to find the right retail franchise investment option for you. Here are a couple of the best retail opportunities currently awaiting new franchisees...
1. Signorini Tartufi
Signorini Tartufi is an innovative, fast-expanding seller of truffle products with over 30 boutiques across the globe. The franchise was founded by Frédéric Dubois Signorini, and he’s proud to be giving everyone the luxurious taste of truffles at fair and affordable prices.
- Becoming a Signorini Tartufi franchisee: You won’t need specific industry experience, but you will need management experience and plenty of business acumen, alongside plenty of dedication, dynamism and excitement to get started.
- How much you need to invest: You’ll need to make a minimum initial investment of £30,000, with franchise fees of £15,000 and a total investment cost of £90,000 (plus operating and advertising fees).
- What you get for your investment: Every franchisee spends a day in an existing boutique to get a feel for the franchise, followed by a week training in an existing boutique (covering everything from products to sales to the Signorini brand).
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2. Post & Packing
Post & Packing is a post shop offering customers a vast range of postal services, including archiving services, courier services, fulfilment services and more. Founded in 2012, the retail franchise has grown steadily, and now has 11 different franchise locations across the UK.
- Becoming a Post & Packing franchisee: Knowledge of the postal industry would be beneficial, but isn’t essential. Beyond this, you should be dedicated, committed and ready to take the growth of your Post & Packing franchise as far as you can.
- How much you need to invest: You’ll need to make a minimum initial investment of £35,000, with a total investment cost of £50,000 and operating, advertising and royalty fees (each ranging between £150-£995 per month based on various factors).
- What you get for your investment: You’ll be inducted and trained on every aspect of the business, including marketing, sales and operations. You’ll then have access to all the ongoing support you need when up and running as a Post & Packing franchisee.
Start running your own business in the ever-expanding retail sector this year
Hopefully, you now have a better understanding of the sector’s current status. Stay on Point Franchise to continue your retail franchise research and deepen your understanding, diving into not just all you need to know pre-investment, but all you need to know post-investment in order to run your business effectively. Discover five tips for marketing your retail franchise, four tips for running your retail franchise and five tips for creating your retail franchise’s business plan.
Lily Sweeney, Point Franchise ©