Capital Electrical Wholesalers

Business Model and Operations

Capital Electrical Wholesalers™ (CEW) operates a premises-based franchise model that serves primarily the small and medium-sized enterprise (SME) electrical contractor sector. With its flagship company-owned store in Greenford, London, and an expanding franchise network, CEW offers trade counter services, online ordering, and same-day delivery to its customers. The franchise operates from secondary retail premises or small business park/industrial units, typically between 1,200 and 2,500 square feet, emphasizing convenience and accessibility without the need for large warehouses.

CEW focuses on stocking popular and fast-moving electrical products such as cables, switches, lighting, tools, and consumables. Its supply chain allows franchisees to order and generally supply products within 24 hours, reducing inventory costs and enhancing cash flow. This streamlined model provides franchisees access to a comprehensive product range and benefits from preferential buying terms through membership of one of the UK’s largest electrical industry buying groups.

Franchisee Role and Support

Franchisees manage day-to-day store operations, including customer service, team leadership, stock management, marketing, and financial administration. They are the brand’s representatives in their local communities, focusing on building strong relationships with electrical contractors and delivering world-class service to maximize sales and profitability.

Extensive support is provided by the franchisor, including comprehensive training both at the headquarters store and the franchise location before launch. Ongoing assistance covers marketing, IT, supply chain management, stock control, and financial guidance. This ensures franchisees are well-prepared at opening and supported throughout their business growth.

Investment and Market Opportunity

The franchise requires an estimated initial investment between £84,000 and £104,000 (excluding working capital and VAT), which includes an upfront franchise fee of £9,995. Key cost areas include premises fit-out (£27,000), equipment and IT systems (£10,000), inventory (£30,000–£50,000), and launch expenses (£7,000). CEW’s membership in a prominent buying group provides franchisees with buying power, rebates, and access to over 120 approved electrical product manufacturers.

Operating within the £3 billion UK electrical components supply market, CEW targets a stable and growing segment. The franchise model offers entrepreneurs with business skills and customer service focus an opportunity to gain a foothold in this industry, benefiting from brand support and efficient supply chain operations.