Bestway Retail has unveiled a new set of terms for its franchisees following the acquisition of the Bargain Booze business.
The new terms, which apply to retailers trading under the Bargain Booze, Select Convenience and Wine Rack More brands, were outlined to franchisees in a series of 12 regional meetings. Under the new arrangement, retailers now have much wider access to Bestway’s range of products, including fresh, chilled and own-brand items, and can source up to 10% of goods value from outside Bestway.
Terms have been reviewed to increase cash flow with all franchisees receiving 21 days credit on purchases as well as a rebate scheme that allows them the opportunity to earn up to 4% rebate on their wholesale spend through the group, depending on loyalty and delivery efficiency. Franchisees normally receive two deliveries a week from the company’s Crewe warehouse, with low-spending customers incentivised to accept one per week.
Franchisees will also benefit from simplified paperwork processes and sale or return options.
Bestway Retail managing director David Robinson commented: “Naturally, many of our franchisees were impacted by the disruption they had recently experienced, so it was important that we met with as many of them as possible, not only communicate our new improved proposition, but also to listen to them and to respond to as many questions as possible as we begin to build the plans for the future.
“It’s vital that we meet the needs of our retailers and, by limiting the amount of paperwork, this frees up franchisees’ time and efforts into developing their business. The reduction in the number of products that franchisees are required to purchase through the company gives store owners the opportunity to support other local businesses and provides shoppers with locally sourced products which may not be available centrally.”
He concluded: “The vast majority of franchisees have responded extremely positively to the new, improved proposition. They see a brighter future, and many are already talking about how they can further grow wholesale spend to unlock more rewards, with some discussing how we can help to expand their estate as well.”
Bargain Booze franchisee Alex Kapadia from Dunstable, Bedfordshire, told C-Store that the Bestway proposals are “a massive step in the right direction”.
“With a hugely improved rewards programme and access to chilled, fresh and own-label, this helps to resolve all of the issues we had in terms of running the business,” he said.
“Bestway has worked very hard to come up with a package that is competitive with other symbol groups and it seems to have struck a very good balance with this. Most franchisees went through a stressful time earlier in the year [following the collapse of former Bargain Booze owner Conviviality] and I know that the vast majority view these new terms as a very positive step forward.”
Bestway Retail services 369 Bargain Booze stores, 235 BB Select Convenience and 26 Wine Rack outlets. The company also owns 120 Central Convenience stores.