New Store Sales Update

New stores seeing faster growth

New stores are consistently achieving both higher and faster sales growth in their first full 12 months of operation.

When looking at new stores grouped chronologically since June 2013, the newest grouping of 6 stores – opened between January to May 2016 – averaged higher monthly sales than the previous groupings in all 4 of their first full months of operation. This is not an isolated trend. Group 3 – consisting of stores opened between April to December 2015 – also achieved higher average sales than the groups preceding it in 8 of their first 12 full months, while also exceeding average monthly sales in 11 of those months. The first 12 month average sales also progressed with each group, with Group 2 achieving 19% average sales growth over Group 1, and Group 3 achieving 10% higher averages sales than Group 2. The graph below illustrates these results.

While variables such as franchisee strengths and weaknesses, market attributes, competition, price trends and locational quality attribute to these changes, specific actions that have helped cause this trend of success likely includes:

  • Preparation and Support: We suggest newer franchisees are better prepared and qualified to hit the ground running as we continue to enhance training programs and new store support;
  • Marketing: The Brand Fund’s growing arsenal of marketing weapons and our own growing expertise is driving inquiries and stronger brand awareness;
  • Launch Quality: Improved new store opening procedures and support are allowing stores to get out of the gate faster;
  • Technology: Stores that open using MetalTech, our new proprietary ERP system, apparently benefit from the pricing engine; enjoying both higher margins and ability to quote faster and more accurately than the previous system would have allowed.

metal-supermarkets-new-store-sales

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