Shaking up the furniture retail scene is going to be a business-winner for one growing franchise chain. That’s what Vast Furniture & Homewares founder Ross Clayton believes.

Since Clayton had his big idea it has taken more than four years to shape and test his concept and now he is ready to unleash the new franchise model into the market.

Vast Furniture & Homewares has been trading for more than 15 years. The brand specialises in versatile, bespoke furniture ranging from wooden tables and bedroom furniture made from disused shipping timber, to vegan leather sofas.

Traditionally the market has been a customer aged 35 or older – now with a strong social media presence the brand is attracting a younger crowd.

Millennials are also drawn to the business because of its artisan, hand-made ethos, says Clayton.

“We’re about sustainable hard woods with a hipster vibe” he says.

So what’s changed?

It’s all about more greater efficiencies.

A more efficient model

The new model implemented by Clayton is based in the cloud: a system that is able to store all inventory centrally and organise direct manufacturer-to-customer delivery, bypassing warehouse overheads.

So instead of franchisees having to build their own system from scratch or be expert importers or exporters, now each business has instant access to the entire range of suppliers.

Clayton says “One of the biggest challenges (for furniture retailers) is the logistics of bulky goods. It’s incredibly competitive and warehousing costs are increasing.” He believes his initiative to remove a layer in the supply chain makes it easier and more cost effective for franchisees to do business.

The outcome has led to reduced delivery times by 80 per cent, providing the ability to offer the quickest possible lead time to customers and all at a low cost. The concept also has the added benefit of costing 70 per cent less than the traditional industry model, he says.

“I have been in the industry for many years and one day simply questioned why we are spending so much money on storage, wasting time in terms of delivery and limiting our overall results. I knew there had to be a better way.”

The system took three years to develop and the first store rolled out the new process 18 months ago – there are now two other company-owned stores working with the cloud inventory.

The remaining 22 outlets are all franchised and it will be the choice of the franchisee whether or not to tap into the new model.

Any costs of implementation will be countered by lesser ongoing storage costs, says Clayton.

20 new franchisees

Incoming franchisees will need take on the cloud system.

“We’re looking for 20 franchises across Australia over the next two years,” says Clayton.

The franchisor is looking for people with passion, great customer service, a happy personality and a youthful attitude.

It costs an average of $150,000 to purchase a store in an exclusive territory. Set-up and stock will cost about $200,000.

There are plans to take the brand overseas too – expanding from its single store in New Zealand, and breaking into the UK, US and Asian markets are all in the strategy.

“Previously we needed someone who was a born creative business whizz or a cashed up genius to make their franchise a success. Now anyone with the desire to be involved in the franchise business can be set up for success with this model,” says Clayton.

“We believe the future lies in being more efficient, productive and cost effective and by providing a franchise model that ticks all these boxes we offer investors a very real chance of keeping our industry alive, right here in Australia.”