Why.......

[securespark]

......do retailers duplicate stores in areas?

In my town centre, there are three Car Phone Warehouse stores within a few minutes walk of each other...

 

[Spark123]

In most city centres nowadays every other shop is a mobile phone shop! I wonder if they get reduced rates??

 

[mdf290]

Carphone warehouse Franchise outlets as well as have their own stores.

Carphone warehouse wont care if some poor investor cant make his shop profitable because of competition. Another muppet will come along and fill their boots with their hard earned savings or risky borrowings.
They probably have a performance indicator in the contract.

Notice their own shops average 650sqft and the franchise shops average 500sqft.

probably put their own shop in the prime location and then franchise out some stores in less prime locations to mop up residual sales.

http://www.cpwplc.com/about-us/key-investments/best-buy-europe/

 

[Whitespirit66]

Carphone warehouse Franchise outlets as well as have their own stores.

Carphone warehouse wont care if some poor investor cant make his shop profitable because of competition. Another muppet will come along and fill their boots with their hard earned savings or risky borrowings.
They probably have a performance indicator in the contract.

McDonalds do the same thing. Have heard of many instances where they let an investor open a franchise branch, then Mcdonalds opened one for themselves nearby. Suddenly the franchisee's outlet is no longer profitable.

Usual tales of corporate greed.

 

[chapeau]

They're a mug then. You should always insist on an exclusive territory of some sort. I've no idea if macdonald's would give you one, but if they won't then you should think of something else to do with your cash.

 

[gregers]

you want to see how many tescos are opened/opening up in my area,theyve just been given the go ahead to open yet another 'LOCAL' with a alcohol licence when only a few hundred yards round the corner is an old threshers offy thats been opened up by a guy and he keeps getting refused a licence.

 

[masona]

......do retailers duplicate stores in areas?

In my town centre, there are three Car Phone Warehouse stores within a few minutes walk of each other...

I'm guessing if one of their shop is making a loss then they maybe can pay less tax to off set it? Might be a clever way of paying less tax but I don't know as I'm not accountant

 

[r.bartlett]

Carphone warehouse Franchise outlets as well as have their own stores.

Carphone warehouse wont care if some poor investor cant make his shop profitable because of competition. Another muppet will come along and fill their boots with their hard earned savings or risky borrowings.
They probably have a performance indicator in the contract.

McDonalds do the same thing. Have heard of many instances where they let an investor open a franchise branch, then Mcdonalds opened one for themselves nearby. Suddenly the franchisee's outlet is no longer profitable.

Usual tales of corporate greed.

I doubt this very much...The support Mac's give to franchises is far above normal operating standards.

The support is also of a very high standard. Franchisees are assigned a business consultant, who will offer advice and support. Head office teams are also there for any other help - franchisees can pick up the phone to ask a question on any problem in any field that they might have, and will receive comprehensive help. "If you want to pick their brains about anything, they are there at the end of the phone," says Mr Constantinou. "You can do your own thing, but with the support of a universally regarded brand. McDonald's is a brilliant company to work with because of that and the dedication it shows to its franchisees."

That dedication is also shown in other forms of support that it offers its franchisees. Regular communications meetings and sessions are held for feedback, news and assistance. Another strong selling point is that each franchisee gets a say in how the UK McDonald's is run via representatives on the National Leadership Group.