Matchbox to build on franchise success

The Matchbox franchise expects to open one or two stores this year following the success of first franchise at Armadale in Melbourne.

David Cohen, a Matchbox director, said the retail franchise had received a significant number of inquiries from prospective franchisees, but was taking a cautious approach to selection.

Cohen said the giftware franchise had now thoroughly tested its franchise system with the Armadale store, which was a corporate conversion. He said the Matchbox franchise had a five-year store development program for 40 outlets nationally, but planned to expand strategically and at a rate that would ensure franchisees were fully supported.

Matchbox decided to expand under a franchise program last year after a review of growth options and an assessment of the value of the giftware chain's retail brand.

Cohen said the retail franchise had totally reviewed its business, developing a new look for future stores and finetuning ranges. The giftware franchise’s flagship Chadstone store reopened in June after a three-week closure for a refit.

Sales results following the relaunch of the Matchbox franchise had been very good and had underpinned positive sales in the June and July period. "What is particularly pleasing for us, though, is the fact we have been getting sales while concentrating on keeping our margins up. We had had a big improvement in margins in the past 12 months."

The range reviews were part of the margin improvement strategy, with the retail franchise concentrating on developing brands and building ranges in sought-after products.

The giftware franchise has also recently launched a new website as part of the company's franchising program.

It will allow prospective Matchbox franchisees to examine our retail offer online. The website is a marketing tool and will not be used for online sales. While it will provide franchise information, it will also be used for promotional activities and product news. It is another area where we can potentially work with suppliers to build brands and sales through our stores.

The optimum size for the retail franchise outlets will be around 150sqm to 200sqm. Matchbox currently has 10 stores in Melbourne.