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Retail Franchise Opportunities for Sale

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Trends and Facts About Retail Franchises

The UK is famously a nation of shopkeepers, so working in the retail sector is second nature to many UK citizens. So, it's hardly surprising that retail is one of the UK's most profitable business sectors, bringing in £421bn in 2021.

Over 3 million people are employed within the retail sector in the UK, reflecting the impressive 4.5% growth in retail sales (both online and in-person) in 2021. The Office for National Statistics uses the retail industry as an indicator of the growth and performance of the broader economy, showing how reliant our economic health has become on retail.

Retail franchises offer a lucrative path to investing in a thriving brand; whether operating solely online or within brick-and-mortar premises.

Retail franchise opportunities are available in a vast array of business operations, including:

  • Food - food stores, restaurants, cafes, coffee shops, dessert outlets, etc.
  • Clothing and tailoring
  • Hairdressing and spa treatments
  • Vehicle sales and repairs
  • Print and signage
  • Commercial photography
  • Books, stationary, and publications
  • Holistic therapies, such as massage, aromatherapy, and acupuncture
  • Home and DIY
  • Furniture and accessories
  • Perfumes and scents
  • Greetings cards and gifts
  • Pawnbroking
  • Recruitment

And while the UK retail sector is heavily saturated across the nation - posing a significant challenge for independent retailers - you'll find that franchising offers a direct way into existing markets.

Franchising

The retail sector is undoubtedly a saturated marketplace, so it can be particularly challenging for newcomers to penetrate the industry and find a profitable niche. And it's for this reason that franchising has become a valuable path to business ownership.

There's a tremendous amount of risk involved in starting up a new business of any type, but particularly in the retail sector. One of the most challenging aspects of opening an independent store is the lack of visibility against the established companies with a reputation and a clearly defined identity.

So, the logical headstart is to invest in a company that has:

  • Proven itself successful and profitable
  • A clearly defined identity and customer base
  • A tried-and-tested product line that resonates with its loyal customers

When you invest in a franchise, you effectively enter into a partnership with an established expert with intimate market knowledge. The parent company has overcome the hurdles of early years retailers; they've made the inevitable mistakes so that you don't have to.

So, you start from a much better footing than independent business owners who have to work through the inevitable pitfalls of early years companies.

Indeed, franchising provides a unique opportunity to enter the marketplace with a functioning operational model, proven to resonate with the customer base and ready to run from the moment you open your doors to the public.

When you invest in a retail franchise, you're very likely to receive training that ensures you can maintain the parent company's hard-earned reputation. So, the acquisition of a franchise really is an investment in your personal development.

Also, some parent companies provide access to central HR functionality, helping you comply with business-, employment-, and financial regulations.

Retail franchises offer:

  • Ongoing training to bring your skills to an expert level
  • Ongoing business support
  • Ongoing HR functionality

Facts About Retail Franchises

Even though retail was hit hard by the COVID pandemic in 2020, the UK's retail sector grew consistently during the past decade, showing remarkable recovery as the world returns to normal.

In 2019, the UK's retail businesses had a GVA (Gross Value Added) of more than £92bn, representing a vital and essential contributor to the UK's economy.

Supermarkets are considered champions of the retail sector, taking up the principal share of the retail landscape. And while physical stores are recovering from the pandemic's impact, online stores have thrived to an unprecedented level. In 2020, the UK's online sales figures reached a staggering £100bn - an increase of 46% from the previous year.

Now, online sales constitute over a third of all UK retail sales, stabilising at around 27%. However, by 2025, Retail Economics project that online sales will represent 33.5% of the total share of retail sales in the UK.

So, retail is indeed recovering and evolving to meet the needs of the post-pandemic public. This makes it a prime time to join the sector by investing in an instantly recognisable brand that your future clients already know, trust, and love.

Franchising Vs. Independent

Franchises, like all business startups, demand an initial investment. And Franchise Direct's retail franchises are available with an investment ranging from a few thousand GBP to tens of thousands.

So, like all entrepreneurs, it’s likely that you’ll need funding from a bank or a moneylender to get you on the path to franchise ownership.

And this is where franchising really comes into its own because banks and moneylenders often favour the franchise business model. They consider franchising a much safer investment because the business model has been tried, tested, and proven successful, sustainable, and capable of growth.

Compare that with the dilemma of an independent business owner who applies for funding without a track record. They find it much more challenging to represent the viability of their business idea because they have no marketplace history. On the other hand, franchisees can demonstrate the viability of their business because it's already up and running.

For this reason, indies tend to suffer higher interest rates when they achieve their startup funding, which takes longer to repay. Additionally, indies frequently struggle to establish their brand in saturated marketplaces, threatening many independent businesses' longevity.

Unfortunately, almost half of all independent companies fold within the first five years because they struggle to make an impact on the marketplace and struggle to recoup their initial investment.

On the other hand, franchises are more likely to hit the ground running with a ready-made business, an existing customer base and product line, and an existing supply chain.

Retail franchises offer:

  • A strong starting position
  • An existing customer base
  • A ready-to-go supply chain
  • A road-tested service portfolio
  • Robustness during those challenging early years

Retail Franchises

Check out Franchise Direct's impressive array of retail franchises, and help the UK public follow their favourite pastime: shopping!

Find your brand new start with Franchise Direct.

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