From full-blown franchise store solutions, to parcel collections services, local dry-cleaning hook-ups, and opportunities to add a post office to a shop there are many possibilities to partner with brands and service providers in your store. We look at some of the latest news and developments in the franchise and concessions scene.
THE franchised store operations of One Stop continue to grow in Scotland. Owned by Tesco, One Stop runs managed and franchised stores. For franchisees, independent business people who run stores which in other circumstances might be likely to be run under symbol groups, it’s convenience retailing with a difference.
They adhere very closely indeed to One Stop plans, have only very limited ability to source any stock elsewhere, and participate in all promotions.
One Stop says in return they get excellent produce (especially fresh and chilled food and ready meals) powerful merchandising and marketing, and competitive costs, with much less hassle than traditional c-store retailing.
A typical retailer switch package to One Stop will include a full re-fit, which might require investment on the part of the retailer, the installation of EPOS and back office systems, a week’s training for the retailer and staff, project management by staff and a store launch.
The franchise model is very different to some retailers’ ways of working. There’s no scope to shop around between wholesalers and no ability to “overbuy” on promotional deals so as to be able to either keep promos going longer than scheduled or benefit from increased margin once a deal ends.
But it’s clear that some retailers are big fans. In Scottish Grocer’s last Fascia and Franchise supplement Asif and Kashif Mahmood said the result of changing their father’s 2,400 sq ft c-store in the Fife town of Oakley to One Stop in March had exceeded their expectations.
“One Stop make it a requirement that 95% of your stock has to come from them and we’re happy with that. We’re happy not having to run around looking for cheap products elsewhere,” said Kashif.
“You do get a perception of value in One Stop stores, which you don’t get in many other convenience stores, which is what drives footfall. Sales are up 20-25% and product volume is up by well over 35%. The amount of stock we’re shifting is frightening.
“Taking over from our parents, we were used to doing things their way,” said Kashif.
“Then these guys came in and their processes are so simplified, it’s incredible. I think one of the benefits is that we’ve learned a fair bit.
“When we visited other One Stop retailers we found two things that were quite interesting. They either had a lot more leisure time or retailers who thought they would only have one store were now looking at other sites. That’s quite encouraging.”