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Franchise plugs in to growth

Sarah Stowe

Franchisees’ gross profit across the Battery World network has grown while the company has recorded almost 20 per cent like for like growth on its previous year’s trading.

General manager James Nixon-Smith said the chainÕs revenue is expected to exceed $60 million this year, almost double the annual sales recorded since he joined the company in 2004. Figures for the first quarter of 2009 are already showing an increase.

He said the groupÕs consecutive double digit growth annually was testament to Battery WorldÕs strong franchise model.

Nixon-Smith told Franchising , “we’ve been pretty happy. This has given us confidence in our new business model. It’s the culmination of three or four years work.”

The brand has undergone a revamp over the past four years adopting a new retail software system; increasing its product offering; and transforming the stores from a traditional car workshop environment to a retail environment, which has made them more female friendly.

“The transformation of the business, coupled with these encouraging results has been very satisfying for all stakeholders. One of our stores late last year broke a company record by achieving sales in excess of $200,000 in just one month.

“In a tough retail environment this indicates we are well positioned to achieve consistent and solid results for the year ahead.

“Recent consumer research has also indicated that our marketing efforts have had an impact on brand recognition nationally,ÕÕ Nixon-Smith said.

He said the franchise groupÕs goal in 2009 was not only to boost revenue growth but to expand across eastern Australia with Sydney, the Sunshine Coast, Melbourne and Brisbane all in the pipeline. Nixon-Smith said the company’s plans to reach 150 franchises will be boosted with up to 12 franchises to open this year.

There are 76 franchises in the system – some multi-unit – and a Western Australia franchise due to open soon.