RETAILERS ADAPTING TO THE NEW ECONOMY

Posted on November 16, 2011 by Jessica Dees

RETAILERS ADAPTING TO THE NEW ECONOMY

Franchise Consultants See Shift in Retail Franchising in 2012

Through a series of extensive studies and metrics, the franchise consultants at iFranchise Group have identified four major ways in which the majority of retailers are adapting to the new economy.

Using franchising for specialty product distribution.  Franchising offers a uniquely flexible and highly scalable business model that makes distributing and selling boutique or specialty products much more attainable than with traditional business strategies.  Whether the challenge is rapid growth and expansion, streamlining distribution channels, or strategically expanding internationally, franchising offers the best solution for many companies with niche products.

Flexibility in real estate.  For retail franchises, real estate is one of the most important, and most expensive, aspects of the business.  To that end, franchisors are seeing the need to adjust their franchise agreements to fall more in line with the franchisees' real estate requirements (e.g. having the franchise term be the same length or longer than the building lease) as well as re-think the real estate requirements for a franchise location (for example, while a storefront may be preferable, often times a kiosk may be more financially viable for the franchisee).

Multimedia online training.  Training is a vital element in any business, and online multimedia tools have made training not only cost-effective and highly scalable, but brings with it the flexibility to update and change training materials on the fly, as often as the franchisor deems necessary.  These training systems are excellent for preparing the franchisee to run the business, as well as training the employees on regulations and day to day operations at the retail level.

"Green" retailers turning to franchising.  Not too long ago, environmental responsibility was a matter of business ethics and governmental regulations, but over the past decade in particular, Eco-Friendly has become product characteristic that most customers will pay a healthy premium for.  Going green is taking off in franchises of all sizes because it benefits the environment, the customer and the bottom line all at once.

About iFranchise Group:  iFranchise Group is a leading franchise consulting firm that offers the skills of the nation's top professionals in franchise strategic planning, operations training and documentation, franchise marketing and sales, advertising fund management, franchise recruitment, and development of Internet-based applications for emerging and established franchise companies worldwide.