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If you’re considering applying to a retail franchise you should take a look at the industry to evaluate how likely you are to succeed. The retail industry has its up’s and downs and is closely linked to consumer confidence and the general level of disposable income for the average consumer. The retail industry is in growth and it has been over the recent years, but we are experiencing a slowdown. This slowdown isn’t solely linked to a single metric, but we have identified a correlating factor within the industry which is also affecting retail franchises. These figures are sourced from the Office for National Statistics.
Retail franchises and businesses alike are suffering from a lower growth in terms of volume against a higher growth in terms of value. This demonstrates that prices are increasing at a higher rate than the number of products bought.
Is this a problem for the retail franchise industry?
Well not necessarily, as we are still experiencing a growth overall and as prices are increasing, this makes up for the lower growth in volume in terms of franchise turnover. The aspect that needs to be considered is, will this trend continue?
Within the retail sector you can find multiple types of stores, these are defined in the infographic. Most of these store types do have franchises operating in their market, but what market is performing the best?
The evidence is strong here, Non-Food Stores are the clear winners. With the highest growth in both value and volume, they should be a fan favourite for aspiring franchisees wanting to work in the retail franchise sector.
The online retail sales are going through a similar phase as the rest of the retail market with a growth but also a significant slowdown compared to the previous year. This growth is however at a much higher rate than all of the retail store types. This demonstrates that considering an online retail franchise opportunity could be worthwhile, but you should further investigate into what sector within retailing you are interested in.
If this has peeked your interest in retail franchise opportunities, then take a look at some we have to offer – Retail Franchises
If you are a franchisor and would like to speak to one of our franchise experts about what we can do for you here at Start Your New Franchise, then please do get in contact.