Retail Stores: Run Your Own High Street Franchise

19/09/2018 18:00 | Start a business

Future of retail stores

Have you always wanted to head up your own retail store? Have you always fancied being your own boss? Do you think you've got what it takes to manage a business? If you answered yes to all three questions, you might want to consider franchising. Here, we take a look at the retail sector in general, how franchises are faring, and what the future holds. Theres also a brief look at three of the top retail franchise in the country.

The UK retail industry

Though faced with tough economic conditions and political instability, the UK retail sector continues to make a significant contribution to the national economy. In 2017, the total value of retail sales hit £366 billion. The sector employs an incredible 2.9 million people and consists of around 294,000 business. Sales actually grew by 4.3% in 2017, and they're expected to continue increasing across 2018.

Even though the national economy has been troubled by the Brexit fallout, consumers are yet to stop spending. This can only be a good thing for the large number of high street retailers who would struggle should confidence in the economy falter.

Brick and mortar retail stores

For many years, experts have declared the death of the high street at the hand of online retailers. While web-based retailers are taking an increasingly large share of the retail market, online sales still only constitute 16% of overall retail spend.

This means that brick and mortar retail stores still play an essential role in the modern economy and that consumers haven't shifted attitudes to such an extent that the high street is no longer relevant. Physical stores are likely to be an essential component in any future retail experience, though their focus and purpose may be radically different.

Online retail stores

That being said, online retail stores are eating up a larger market share with each passing year. Particularly worrying for brick and mortar stores is the fact that online behemoths, such as Amazon, seem to be making a strong argument for a retail sector utterly devoid of physical shops.

However, not all online retailers are heading in the same direction as Amazon, and many have different ideas for retail. With Amazon at one end of the spectrum and traditional brick and mortar stores at the other, several companies are comfortably occupying the middle ground and are likely to be a more accurate representation of how the industry will look in a few years time.

Future of retail stores

In all likelihood, the future of retail will be dominated by online sales, though physical stores will still be important even if their role is more ceremonial, image-based, or single purpose. Many retailers trialling new smart stores can help demonstrate how such systems may operate.

For instance, there are the clothes shops trialling boutique stores that only stock enough of each item for customers to try them for size. When they find the right size, they tell the attendant, and they organise the delivery of the product the customer's address. Similarly, there are concept stores that stock no products whatsoever and are merely exercises in how far you can take marketing. As shopping online becomes ever more popular, physical stores will have to evolve and adapt to new functions, but they won't die out.

Three top retail franchises

If you're considering opening a retail franchise, you need to know which franchise best suits you and what the competition looks like. To help you with this, we've compiled a list of three of the top retail franchises in the country. While some are established names, others are up and coming franchises that give investors the opportunity to get in on the ground floor. All of the franchises selected offer franchisees something a little different and each is a unique chance to begin building your own business with the help of an experienced partner.

Skechers

Skechers is a renowned footwear manufacturer that designs, develops, and sells more than 3,000 different types of shoe. As a household name, the franchise has the brand recognition necessary to break into the most competitive of markets.

Franchisees are required to invest a total of £88,000 to get the business going. In return, youll receive extensive training and guidance, as well as merchandising advice, help selecting and fitting a location, and stock. The central franchisor team works closely with franchisees to ensure that they understand how to attract customers and make the most of their marketing resources.

CeX

CeX, otherwise known as the Complete Entertainment eXchange, is an increasingly recognisable presence on the British high streets and one of the most popular retail franchises in recent history. CeX operates as a marketplace for second-hand entertainment technology and buys and sells a wide variety of products, including video games, mobile phones, laptops, and films, amongst other things.

To become a CeX franchisee, you'll need to raise a total investment of around £150,000. CeX operate on the basis that a franchisee will generate an expected revenue of £1 million within the first two years of business, ensuring that the company is a financially viable investment for anyone with sufficient capital to launch a franchise unit.

Platinum Business Partners

Platinum Business Partners is an online retailer that specialises in e-commerce. It provides franchisees with a model by which they sell products online without ever having to manufacture, process, or ship them to the customer. This makes it an incredibly popular option amongst those who want to work from home or require flexibility in their professional schedule.

The franchise asks that applicants invest at least £30,000 to become franchisees. This grants you access to all of the franchises core systems and training on how to implement the franchise business model. The franchise also offers an incredible number of training opportunities and makes your personal development a priority.

Conclusion

Though the retail industry is undergoing a drastic change, consumers are still willing to part with their hard-earned cash. As long as retailers adapt to new market realities, they're likely to continue succeeding and contributing to the UK economy.

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