RETAIL FRANCHISING FEATURE
Retail is an industry that has developed with the ever-growing needs and demands of its consumer. A lot of businesses are created due to necessity, while retail relies on the desires of the public.
Throughout time, retail has developed from malls to box stores to online shopping. It’s the driving force behind Black Friday, Cyber Monday and some would even say Valentine’s Day. It has commercialized most holidays, dominated marketing platforms and plays a role in most other businesses.
Most service industries now offer retail options to boost profit, while other shops have broaden their range of products to give their consumers more options.
The powerhouse of retail is lined with racks of cashmere and wool blazers. Malls are filled with clothing stores from door to door. The options run from low end to extremely high end. Some shops focus on specific apparel like shoes or handbags, while others cover all clothing and accessories, of all ages and styles.
With a surge in online shopping, clothing stores have had to recreate their approaches. Most shops have expanded their options to the internet, offering different sales and designs online only to create a demand.
A lot of the clothing lines have become franchise focused and are relying on investors to open new stores. While retail outlets used to be dominated by a sole CEO and a head office, they have expanded their reach to the franchising world.
Those interested in fashion should consider a clothing store as an easy investment. The brand names that have remained stable after the recession have a tried and true set up. They provide clothing that is constantly changing to keep up with the trends, while the marketing and tech support is established. The customers recognize the brand and there is an online presence.
Before committing to a specific clothing franchise, researching the profits and locations of certain stores. There is such a variety that the choices are unlimited, so there is the option to be particular.
Big Box Stores
People are strapped for time and the easier shopping can be for them, the better. Nowadays, people can order their groceries online and have homemade meals brought to their door all week. The more convenient something becomes, the more people will buy into it.
Big box stores have created a one-stop shop of convenience that reaches all necessities of day-to-day life. Walmart aisles are filled with groceries, clothing, cleaning supplies, toys and even tires. Big box stores now offer services including eye exams, restaurants and hairdressing. One person could spend the whole day walking from one end to another checking off all the needs on their to do it list.
These stores have dominated the retail industry by taken over every product there is to sell and adhering to the needs of convenience. It’s a large financial investment but the profit is a guarantee.
There is a lot of competition with other surrounding stores; the employee turnover is high, its still successful and easy to run. Most franchises have come up with a secured plan that involves a consistent layout, deals and sales placed at the right time and a method for profit.
It would be wise to consider possible locations and territories. A lot of the big box stores have already made enough space in a lot of areas and there isn’t much need for more in the community. While there may be new industrial parks at the developing stage looking for investors.
There is not a lot of heavy lifting with this type of franchise, the business typically runs itself. However, if one is looking for a creative investment, big box stores do not usually leave a lot of room for the imagination.
Home Décor and Furniture
Decorating the home has always been an interest of the homeowner, but recently the industry has had a higher demand. With social media sharing new and creative ideas, it seems like everyone wants to be involved in home renovating.
There has been an increase in house and home television series and beautiful homes have become more accessible to the everyday person. Do-it-yourself projects are tried and tested out by everyone; you no longer have to be handy to give your home a brand new face-lift.
Lumber stores have expanded to décor and furniture, while furniture stores have expanded to televisions and home appliances. Franchises have understood the consumer’s needs and fulfilled them. There is a lot of choice for investors to consider and again research into location is definitely worth the time.
Home décor and accessories has also lined the shelves of other retail stores, creating a bit of competition. Some franchises either specialize in furniture, home appliances and décor, while others specialize in technology but offer a selection of products appealing to the interior decorator side of the consumer.
Retail goes above and beyond clothing and furniture. A lot of stores specialize in beauty products and skin care, while others focus on groceries and liquor. One thing is for certain, a retail store focused on one product is rare and the industry has had to broaden its product range to cover the many needs of customers. People are willing to spend more for convenience than quality. If they can service their needs in less time, they are likely to open their wallets.
With people being more particular in their choices, the products have not only increased in quantity, so have the consumers. The buying public doesn’t only target the working class, it also adheres to children and even animals. There are retail industries dedicated to pet ownership, with the sales of pets, pet food and pet clothing. In 2016, the pet industry reached over $66 billion in sales.
Even though people are having less and less children, the baby care product market reached just over $44 billion in 2016. There are more safety products, organic health care products and toys for babies nowadays than ever before.
So before considering a certain retail industry, it’s smart to look at not only the variety and quantity of products being sold, but also how it appeals to the many consumers that retail covers. For example a clothing store that has high pricing, great numbers, high profit and sells to all the ages, genders and considers their pets, with easy access to online shopping, would be a strong contender in the competition.
There are so many options to consider when it comes to retail, where and what is sold could make or break a franchise. The franchise system had a recipe for success, a head office that is constantly providing new products that are changing with the trends. It generates a profit, while also running itself, allowing franchisees to be surrounded in the world of business without all the hard work. As far as franchises go, it’s definitely worth a try on.
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ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.