Retailers make foray into franchising

Posted On Monday, 30 April 2001 03:01 Published by
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THE recent unbundling and restructuring of companies in the retail sector has seen a number of retail conglomerates turn to franchising as a way of expanding and consolidating their operations.

THE recent unbundling and restructuring of companies in the retail sector has seen a number of retail conglomerates turn to franchising as a way of expanding and consolidating their operations.

Retailers such as Woolworths will be exhibiting for the first time at this year's annual International Franchise Expo, which takes place between May 3 and May 5 at Gallagher Estate.

The franchise expo is hosted by the Franchise Association of Southern Africa (Fasa) and managed by empowerment group Kagiso Exhibitions. Kagiso is currently running the Rand Easter Show which ends tomorrow.

The OK franchise division is another retailer due to take up the opportunity to exhibit at the expo. Franchise expo executive director Nic Louw said yesterday franchising was suited to the small and medium-enterprise sector as it harnessed entrepreneurship while ensuring job creation and skills transfer.

'The expansion of franchising into different business categories continues to grow significantly with new concepts emerging in areas such as education, travel and e-commerce,' he said.

Louw said the expo was expected to reflect the changing face of franchising in SA. 'Wellknown brands will rub shoulders with new emerging concepts that could be tomorrow's franchise successes.'

Louw said this year's exhibition would include the US representatives. 'This is the first time the US government and the commerce department has made such an initiative and pro-actively participated in promoting trade within the franchise industry. It is one of the first positive indications that the new order at the White House has its sights set on southern Africa.'


Publisher: Business Day
Source: Business Day

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