Andersens has a mega goal – to double its footprint to 100 stores in five years. And despite Covid restrictions, the Queensland-based retailer is continuing to grow and open stores.
So what is the secret to the chain’s retail success?
Network development manager, Dean Lightfoot, tells Inside Franchise Business he is optimistic about continued growth for a number of reasons.
1. Great campaigns that hit the right note
“What works really well for us, we did an Australian manufacturing campaign in June with 20 per cent off Australian products, and it went through the roof. This was a massive result for us.
“Some of the stores are doing 20 per cent again purely to support manufacturers.”
2. Secure supply chain
A massive warehouse means Andersens can supply the franchise network for months without going direct to suppliers
“Before the Melbourne shut down we were able to make some significant orders to restock our warehouse. We invested another million dollars in stock again.
“Some of the mills have closed, however our franchisees are still able to draw their orders from our warehouse.
“We still have mills in Queensland, New South Wales and outside of lockdown in Victoria. We’re importing certain products which are not available locally, however this process has slowed by a week or two since Covid.”
3. It’s easier than fast food
“When people are looking at franchising, this is a hidden success, and it’s so much easier than QSR. Our network has a long legacy of long term franchisees with the average at 15 years and a large number well over 20 years, as they have been able to enjoy a balanced lifestyle and the financial rewards from their business.”
4. It’s a legacy brand
The business started out in the country in the late 1950s, and has been in franchising since 1980. It still has a country spirit.
“We bring a lot of legacy and trust for both customers and franchisees. We have a history of providing guarantees on product, such as our 100 day guarantee.”
5. Strong support
Andersens supports franchisees directly, and by supporting new staff.
“New franchisees get assigned a mentor available 24/7. They often become a good friend and ally.
“When there’s a new sales person in store, we send out a trainer out to help train. It’s on a needs basis so they stay as long as they are needed. They show how the salesperson how to quote for a job, and there’s an online academy for them too.
“This takes the pressure off franchisees.”
6. Stores are still opening
The retailer is moving down the east coast from Queensland, explains Lightfoot.
“We are looking at South Australia, and Sydney down to Victoria. We’ll have about 10 stores in that stretch.”
A Wagga Wagga outlet opens soon with a flooring retailer rebranding an existing business to Andersens.
7. Adaptability
When Covid hit, Andersens adapted and introduced an augmented reality app that under shutdown has proved invaluable to maintain customers’ purchasing habits.
“The brands able to manage through the crisis are likely to be highly sought post-Covid,” Lightfoot suggests.
“It’s a challenging time but it’s been good so far, and we’re positive. We appreciate the drive and tenacity of our franchisees.”