The network of children's shoe stores “Fun Step” launches a franchising program.
“For 9 years we have fine-tuned key business processes and built long-term partnerships with suppliers. We know the main market trends and shape them ourselves. Therefore, today franzising is the optimal model of network development ”, commented Tatyana Ivanova, head of the development and franchising department at Veselo Shagat.
The company plans to develop franchising in Russia and the CIS countries. “First of all, cities with a population of over one million are of interest, where conditions have been created for the medium + segment, there are large shopping centers, and there are federal chains. Where the buyer is willing to pay for technology, quality and design, ”added Tatiana Ivanova.
Partner Stores will be launched in the format from 65 to 80 sq. m. The priority of the company is accommodation in large shopping centers with a conceptual children's area. Street-retail is also considered based on the fact that shoes are a targeted purchase.
According to the terms of the franchise, the partner pays the network a one-time fee of 100 thousand rubles, as well as royalties - 1% of the store's proceeds. In-season store filling will cost the partner about 65 thousand rubles per square meter of area. The prices for children's shoes from franchisee partners and in their own retail are the same, there is one loyalty program and marketing campaigns.
“The cost of launching and operating the store is about 8 million rubles. This includes all costs associated with opening a store. 3,0-3,5 million are repairs, trade equipment, rent, office equipment, advertising, 4,0-4,5 million — store inventory for the season, 0,5 million — operating expenses related to wages payment, delivery, consumables ”, explained Tatyana Ivanova.
The franchise package includes an assessment of the attractiveness of retail space and the terms of the lease agreement, calculation of the main economic indicators of the store for 2 years. According to the company, the average monthly turnover from 1 quarter. m. will be from 25 rubles. The payback period for a store opened under a franchise is 000-1,5 years. The retailer plans to open up to 2 franchised stores in 15.
The Veselo Shagat brand has existed on the children's footwear market for over 9 years. Today, its own network consists of 23 own stores in Moscow and St. Petersburg.