07 June 2012
One sector glows in a tough retail environment
Australian electronic retail is taking a punch at every turn, and Retravision Southern is just one of the recent casualties, but there is a light shining from an unexpected retail sector.
Some industries and business models are faring better than others, despite challenges for all retailers with declining consumer confidence and rising living costs, growth of online shopping, an imminent carbon tax and mass job losses.
Gavin Culmsee, Chief Operating Officer of specialist bedding and furniture franchise, Bedshed, says electronics retailers are doing it particularly tough.
"Electronics retailers face intense pricing competition from online, and with slimmer margins they have to sell more to earn the same profit revenue as other businesses," Mr Culmsee said. "The recent collapse of Retravision Southern and profit warnings from brands like JB Hi-Fi and Harvey Norman indicate this industry may be feeling the pinch more than others."
Bedshed is an example of a brand bucking the retail trend, posting positive growth and opening new stores at a time when few would consider starting a business.
"Franchises thrive in economic downturns because they have experience, a well-known brand and are supported by a network of franchisees committed to the success of their individual businesses," Mr Culmsee said.
"While we're certainly feeling the impact of a difficult retail environment, it is reassuring to see the franchise system we have developed over the past 30 years is proving strong and profitable. Being in the bedding industry also has its advantages. Our customers rely on expert on-the-ground advice and would rarely buy a bed without testing it out in-store," he said.
The benefits of a well-established franchise system continue to pay dividends, with the flexibility of being your own boss and added support of an experienced team and network of franchisee partners.
Unlike other franchises, Bedshed offers its franchisee partners the opportunity to forge relationships with suppliers and manufactures by participating in overseas buying trips and provide input into new product selections.
-Ends-
About Bedshed:
Bedshed is one of Australia's largest specialist bedding and bedroom furniture franchises with a network of 40 stores across the country. Bedshed has grown steadily since it started in Western Australia in 1980 and is currently expanding on the eastern seaboard.
For further information, please contact:
Lauren Magid
Wrights PR
0412 647 773
[email protected]
