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Co-op will launch franchise stores this year for the first time ever.
Co-op will launch franchise stores this year for the first time ever.

Co-op to roll-out franchise model


NamNews - Feb 13th, 14:40

The Co-op has confirmed that it is looking to develop a network of franchise stores following successful trials of the model. 

The society has launched a recruitment programme for independent retailers with the aim of creating a “significant number” of new Co-op branded stores under its franchise offering. These will be on top of its recent announcement to build around 100 new owned stores in 2019.

The Co-op began trialling its franchise model last spring, with its fourth store opening this month. It claims these stores have seen a minimum 50% uplift in sales.

To become a franchise, retailers must have a store with a sales area of over 2,000 sq. ft., generating a weekly turnover of at least £20,000. They must also “share the Co-op values and principles”.

As part of the Co-op network, store owners will benefit from support on merchandising and branding, and access to the society’s EPOS and back-office services. They will also be able to stock the Co-op own brand range, which is already available to around 4,000 stores following its acquisition of Nisa.

Meanwhile, franchised stores will be able to offer shoppers the same access to the Co-op’s membership scheme, which provides a 5% reward on any purchase of own brand lines.

The move marks the first time the Co-op has licensed its brand to independent retailers in its 175-year history. Martin Rogers, Head of New Channels, commented: “This is a significant milestone in our franchise ambition and we’re looking for the right retailers in the right locations to share in our success and help widen the reach of Co-op products.”

He added: “We now have the capability to deliver franchising at scale, offering our award-winning food, in new places to attract new customers and members.”KamCity 

Read more about: stores | retailers | retail | franchise | co-cop

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