Convenience chain One Stop, a wholly owned subsidiary of Tesco, is to begin trialling a franchise model with independent retailers.
Benefit from the One Stop brand
The franchise model will allow independent retailers to continue to run their own businesses whilst also benefiting from One Stop's brand, experience in convenience and the added support and investment One Stop can offer. It is understood that through the franchise, retailers will also benefit from One Stop's low cost operating and distribution models, which in turn means customers benefit from competitively priced everyday essentials. It is reported a pilot store could open in the next few weeks.
Offer expertise in distribution and store proposition
One Stop chief executive Tony Reed commented "One Stop is a successful brand with over 20 years experience in the convenience market. Our customers regularly tell us that they love our great prices, promotions, range and service; and these endorsements are reflected in our consistent growth. Independents offer years of local relationships and commitment to their customers. We want to preserve this and in turn offer our expertise in distribution and store proposition."
Increasing brand coverage
Convenience is becoming a pivotal part of many businesses, with Sainsbury's, Morrisons and Waitrose all announcing plans to ramp up their convenience opening programmes. In a time when there is such competition for sites, the franchise model put forward by One Stop will allow the retailer to work with established convenience stores and increase the coverage of the One Stop brand.