Franchise stores

 

Darty is the market leader in France with 70 per cent of consumers within a 30 minute drive time of a store. The remaining 30 per cent of consumers represent an opportunity to further exploit the existing infrastructure of our multi-channel offer. Typically these consumers will reside in smaller catchment areas, usually below 100,000 inhabitants, where it is uneconomic to open a typical Darty store. To address these smaller catchment areas we established a franchise operation last financial year.

The independent owner invests to refurbish their own store to a Darty store, consistent in terms of both branding and offer with the rest of the store portfolio.  We charge the franchisee for the supply of product ranges and provision of home delivery and after sales services. A franchise fee is also charged for use of the brand and marketing support.

The franchise network is now at 52 stores in France, with four overseas, only 18 months after we opened the first store having opened 13 during the first half of the current year.  Sales uplifts on conversion remain very strong and those stores trading in their second year are on average seeing over 12 per cent like-for-like sales growth.  The franchise network was profitable in the first half of this year.