One Stop has officially launched its franchise model to independent retailers, following a successful trial at five sites.

The scheme has been in operation since early 2013 with its first pilot store in Swindon, Wiltshire, followed by four others, two in the West Midlands, and two in Wales. The pilots have included a number of different formats including existing symbol operators, a converted post office and a ‘cold start’ with no previous experience. Converted stores have seen average sales increases of 60%, according to One Stop.

Under the terms of the scheme, franchisees own the premises, employ the staff and manage the cash flow. One Stop provides branding, buying power, promotions and support through its technology systems and store operating manual. Retailers will be expected to purchase a minimum of 95% of stock through One Stop, with the ability to add local lines for the remainder.

Shaelender Goal has been running a franchised store in Acocks Green, Birmingham, since September 2013. Post-conversion opening hours were extended and a fresh and chilled offer added, along with enhanced grocery and impulse ranges. Retail prices have fallen an average of 3% and turnover doubled to £20,000 per week, he reported.

He said: “To be successful, all independent retailers need professional and expert help on their side, which One Stop has provided me with throughout. You need real expertise to actually make money and still have market-leading offers, and the proposition that One Stop is offering is very strong and can work for most retailers.”

For the rollout, the group is targeting medium-sized operators with stores of 1,000-2,500sq ft, and is understood to have strong leads for as many as 45 stores already in the pipeline.

The group offers a project-managed refit and stock control, plus launch support in the store’s opening week.

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The One Stop deal

  • Five-year agreement
  • Minimum 95% of stock purchased through One Stop
  • Auto replenishment with no minimum drop
  • Franchise fee payable weekly, annually or all up front
  • Access to One Stop epos, operations manual and promotional programme
  • Project-managed store refit
  • Dedicated BDM
  • Personalised store fascia

The story so far

One Stop is owned by Tesco, but in recent years has operated autonomously and is able to re-invest its profits in new stores and the franchise operation.

The franchising proposition was born out of the group’s acquisition of the Mills Group in 2011, where like-for-like sales increased by 19% in the first year after conversion to One Stop.

One Stop recently completed the conversion of 33 stores purchased from Spar operator Alfred Jones last year, with new epos and fresh & chilled ranges. It now operates more than 700 stores across England and Wales.