Holiday Franchising - Retailer’s Delight

Franchising.com:

Retail is huge. Franchising is huge. And, of course, holiday shopping is huge. Add all that up, and opportunities for retail franchises are tremendous - especially in the last 4 to 6 weeks of the year. A quick look at some numbers backs this up:

Worldwide, total retail sales grew from $6.37 trillion to $8.69 trillion from 2001 to 2005, a gain of 36.5%; for North America, those corresponding numbers rose from $2.10 billion to $2.58 billion in that same period, a gain of 23%. (Euromonitor International)

Inside the U.S., franchises accounts for more than $1.5 trillion in total economic output of in the U.S., nearly 10% of the country’s total private-sector economic output. (PricewaterhouseCoopers, 2004)

American consumers will spend about $457 billion in the 2006 holiday shopping season, up 5% from 2005 (University of Dayton). That translates to about $800 per American - with an additional $100 in spending on themselves. (BIGresearch/National Retail Federation)

Each autumn, it’s hard not to notice that holiday advertising begins earlier each year (try Halloween). It’s late November, though, the day after Thanksgiving, when the holiday sales season ‘officially’ kicks off. On this day, ‘Black Friday,’ stores are opening earlier too. When some retailers opened their doors at 5 a.m., others had already been open for hours. The taste of turkey still lingered as shoppers lined up to grab midnight bargains.

Yet while shoppers eagerly anticipate holiday sales, retailers view this time of year with mixed feelings. For some retailers, fourth-quarter sales account for 30 to 50% of their total annual revenues, and this can be a make-or-break season for them. Come January, some will be counting their profits, while others will have going-out-of-business sales.

Franchising is a proven way for retailers to minimize their risk. Backed by a proven system and a known brand, retailers can rest a little easier during this stressful time - knowing they have the support of their franchisor wanting them to succeed. More.