Retail Franchises
While the franchise industry is comprised of many restaurants and business services, retail franchises are quickly booming. A retail franchise can sell a variety of products from fashion to CBD, electronics and convenience stores. Retail is one of the broadest categories of franchising out there, which can help owners target niche and specific demographics to help boost profits. The National Retail Federation (NRF) reports the industry grew an average of 3.7% annually between 2010-2019. Despite concerns over internet selling, brick-and-mortar stores are still raking in cash, along with the retail industry.
Retail Franchise Market
Retail is now growing at rates the world has not seen for more than two decades. The NRF shows retail sales grew 7% in 2020 and doubled (to more than 14%) in 2021. This trend is something the federation does not anticipate dying down. In fact, they are forecasting sales will continue to increase anywhere from 6% to 8%. This could mean nearly $5 trillion in 2022 alone. These figures do not include restaurants, car sales, or gas stations.
Money to be Made
In 2021, US retailers reported twice as many store openings as closures. This shows a healthy and growing market for investors looking to enter the retail space. The Bureau of Labor Statistics reports in 2020 Q3, there were nearly 5,000 more retail establishments than the quarter before. This is actually the highest Q3 number of establishments in the last ten years. According to Shopify, brick-and-mortar retailers can expect about a 4.5% profit margin on average.
Retail franchise opportunities trending now:
- Plato’s Closet: Fast fashion is out, and sustainable, green fashions are in. Average gross sales for franchises in 2021 were more than $1.2 million.
- 7-Eleven: Consistently, 7-Eleven franchises are highly ranked and profitable. This year, Franchise Times put 7-Eleven as the number 2 franchise in the country.
- Play It Again Sports: During the pandemic many people picked up sports and outdoor hobbies, sparking a need for equipment.
- Spice &Tea Merchants: More people are cooking at home. Spice & Tea Merchants continued to open new stores during the pandemic.
- Apricot Lane: Apricot Lane claims to be the #1 women’s fashion franchise selling the latest trends in a boutique design.
Retail Franchise Opportunities
A retail franchise can be a creative outlet for fashionable owners, a savvy investment for those with big-pockets, and an employer for your community. The vast array of retail options allow owners to tailor their passion to the needs of their local area, all while making good money. Your franchise fee covers training and ongoing support, a proven business model, and a full team behind you.
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