Franchise retailers in the grocery and newsagent sectors are set for further growth in 2016, according to new market data as retailers claim franchise membership gives them more time to focus on upcoming legislation.
A survey conducted by the British Franchise Association and NatWest found the total sector was worth £15.1bn in 2015, a 10% increase on figures recorded in 2013. Within this, ‘store retailing’ franchises, including the likes of One Stop, Bargain Booze and WHSmith Local, as well as other retail sectors, were responsible for £3.2bn of this turnover.
The survey backs up reports of growth from companies including One Stop, which broke through the 100 franchise store mark last May.
Vip Measuria, owner of a One Stop store in Derby said: “One Stop invests more in retailer support teams and helping us to get better deals compared to the symbol groups.
“It’s given us more time to focus on upcoming issues such as pension auto-enrolment and the National Living Wage.”
Meanwhile Conviviality Retail, which owns Bargain Booze and Wine Rack, also revealed to RN it added 76 new franchisee stores to its estate last year.
Amanda Jones, chief operating officer at Conviviality, said: “New franchisees have joined from a cross section of fascias such as Nisa, Costcutter, Londis, Best-one, and other independents.”
Cathryn Hayes, head of business support at the British Franchise Association, said she expected franchise revenues this year to “climb towards £16bn”, adding that “90 to 95” of the UK’s 900-plus franchise brands will be in retail by the end of 2016.
“Alongside established brands such as Bargain Booze, it was a year in which One Stop continued its franchise expansion at a rapid rate and with impressive results for franchisees,” she said.
“We have seen increasing numbers of large brands turn to franchising as their expansion model of choice, whether through new outlets or converting company-owned stores into franchises.”