Cover Story
B
y trading exclusively in digital entertainment products, the Complete entertainment eXchange (CeX) catapults the buy- and-sell concept into the
21st century. Where once-similar outfits would have traded books and records, CeX buy, sell and exchange mobile phones, games, computers, tablets, DVDs and electronics with the public. Since it first opened its doors in London in 1992, CeX has expanded to over 250 stores in the UK and over 350 stores worldwide. It launched its first franchise operation in 2005 and now more than half of the UK stores are franchised – clear proof of the brand’s strong business model and potential for growth. A store opened almost every week in the UK last year, and as technology changes and the demand for used electronics continues to grow, this rapid expansion shows no sign of slowing down. The fast pace of growth is in part down to the confidence that existing franchisees have in the brand, so much so that many of them have chosen to invest in multiple additional outlets once their first is up and running.
One such franchisee is Gabriel Moreno, who opened his first CeX store in Poole in April 2012 and his second just one year later, in Boscombe. Gabriel’s third store opened in Fareham in autumn 2013 and he has hopes to open further outlets in the near future.
Gabriel’s background is in the fast food industry. “My own experience working as an area manager for a fast food franchise taught me that the level of knowledge and market experience that come with a well- established franchise helps to diminish the risks involved and go towards bringing about the desired success.”
When considering investing in his own franchise, Gabriel says he researched
pizza and coffee concepts but the return on investment simply did not match up to that of CeX. “This, together with the CeX 12-month buy-back guarantee, made it a virtually risk-free investment for me.” A typical CeX store generates a return on investment within two years and an average annual turnover in excess of £1million.
“The diverse nature of the business is what has attracted many investors to the brand”
In terms of challenges he has faced along the way, Gabriel says that the buy-and-sell nature of the business was quite difficult to get his head around in the beginning. “CeX is not your average retailer, and the fact that there are no stock suppliers make it a difficult business to understand. My instinct was to focus on sales, so changing my mindset to focus on purchases has been challenging. My recommendation would be to trust the franchisor, they know what they are up to.” When asked why he thinks the CeX brand has thrived in the declining retail marketplace, Gabriel cites the flexibility of the model. “The CeX business model is in constant change and has adaptability built into its foundations. The CeX business model is unique. It has a product offering unlike any other retailer and is also a brand leader in the second-hand product market with its 12-month warranty policy.” For new starters, there is plenty of training to ensure that a franchisee is fully prepared to run their own CeX business. The initial training programme is an intensive 12-week store-based course
providing practical on-site experience. Gabriel says: “I had over 600 hours practical in-store training across different levels of management, which made me feel ready to run my own unit. Starting with comprehensive in-store training from sale assistant to management and further onto remote managing, performance and HR. The store-opening support team are brilliant; they handle the set up of a new shop until the first trading day and the roaming support are there to help you until you are ready to go on your own.” Gabriel says that no two days are the same at CeX. “The day-to-day role is very varied; it can go from a store-based day having face-to-face contact with the customers to a computer-based day dealing with emails, and you must be prepared to be flexible.” The diverse nature of the business is what has attracted many investors to the brand, luring them from the humdrum of an office- based role, but franchisees also come from a range of other backgrounds. When it comes to personality requirements, though, Gabriel explains the type of person that he believes a CeX franchise would suit. “I think that in order to be successful, you have to be a self- motivated and passionate individual looking to achieve success in a vibrant industry.” It would seem that Gabriel fits this description; he has big ambitions for the future, and obviously enjoys running his CeX stores. “I love seeing my business grow. It’s an added bonus that I have the opportunity to try out a whole host of technology products too!” n
CEX
WEBSITE:
webuy.com/franchising EMAIL:
uk.franchisingteam@
webuy.com CLASSIFICATION: Retail
October 2014 |
Businessfranchise.com | 25
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