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One Stop rolls out franchise model

30 January 2014

One Stop Stores Limited has officially launched its franchise model, following a successful trial with five independent retailers.

One Stop’s franchise concept was announced in April 2013. The trial started with its first store in Swindon, Wiltshire and had five pilot stores trading by October last year, with the addition of two in the Midlands and two in Wales. One Stop included a range of different scenarios within the pilot, to ensure the model worked across the board for independent retailers. Having completed the pilot and put the necessary infrastructure in place, One Stop is now in a position to offer its franchise model to independent retailers across England and Wales.

The One Stop franchise is built around the group’s successful formula within its company-owned estate, comprising over 700 stores, which outperformed the convenience market by 3% in 2012 (according to independent IGD research). Running a pilot scheme has enabled One Stop to tailor its model to suit the independent sector, with input from participating retailers helping to refine the proposition. As franchisees, independent retailers continue to run their own stores whilst benefiting from One Stop’s successful brand, convenience expertise, support and investment, to help grow their businesses. Following an initial transition period, retailers will undergo a fully project-managed refit which delivers the look and feel of a One Stop. Through the partnership, franchisees also gain access to One Stop’s low cost operating and distribution model.

The partnership is a long-term commitment, with retailers signing up to a five year agreement and buying 95% of their stock from One Stop. In return, franchisees have the ability to introduce ‘local choice’ products into their ranges, whilst benefiting from merchandising advice and planograms tailored to their location and demographic. If franchisees work with the suggested order system there is no minimum drop; in fact, One Stop’s auto replenishment facility ensures retailers no longer spend hours on ordering their goods and instead can focus on running their stores. With the aim of keeping the model simple and transparent, there are also no hidden costs, surcharges or levies.

Following feedback from the trial, franchisees can opt to pay their franchise fee up front, annually or on a weekly basis. The cost is competitive and provides retailers with a comprehensive package, including: the project-managed refit of their store to ensure it has the look and feel of a One Stop; full training and launch support during the first week of operation; a dedicated Business Development Manager ongoing to help drive the business forward; the provision of One Stop’s retailing expertise via an online Operations Manual; and participation in One Stop’s renowned promotional activity. The provision of the group’s EPoS and back office system helps retailers to understand and run their stores more efficiently, as well as offering full integration with other services. In addition, franchisees will retain an element of local branding via a personalised store fascia, as part of One Stop’s investment into their store.

One Stop’s CEO Tony Reed, announced:
“We’re delighted to unveil our new franchise model, which we believe is unique within the UK convenience market. This ground-breaking development offers independent retailers a credible alternative to help build their future success. We’ve developed a strong package in conjunction with our pilot retailers and taken our time to ensure we have a compelling proposition; in a nutshell, great prices, promotions, investment, technology and expert support. We’re confident that a significant number of retailers will be interested in and will benefit from joining the One Stop franchise operation.

“Excluding the cold start store, our pilot stores have achieved an average sales increase of 60% since they came on board and the store owners have reported that their profit margins have risen significantly. Just as important is the incredibly positive feedback from our franchisees and, to those who have come from a symbol background, how different franchising is. Our franchisees are impressed with our ways of working and how it’s helping them to become better operators. The transformation within their stores has been dramatic and we’re not just talking about the look and feel – it’s about providing what the customer expects in their location and engaging with their customers and local communities. It’s a real mind-set change for our franchisees, which allows them to fully focus on being a better retailer, but they’ve embraced it and are reaping the rewards!”

Retailers interested in finding out more about the One Stop franchise scheme can call 01543 363003 or go to www.openaonestop.co.uk for further information.

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