The importance of a multi-faceted franchise model proves more pertinent now than ever before. In a review of the numbers since lockdown Level 5 lifted, Cash Crusaders has celebrated the resurgence of positive Gross Profit results north of 15% Year-on-Year (YoY) in the short time the stores have been able to trade.
But how, when a socio-economic environment tells another story?
“These encouraging results stand testament the way the business has been designed across 3 profit centres with the insistent objective for our business to meet the needs of a community,” says Sean Stegmann, CEO of Cash Crusaders Franchising and panelist for 702’s Franchising for Future Success webinar, powered by Cash Crusaders that included industry experts and FASA representatives.
The national trading total across the Cash Crusaders business is currently sitting at 16.1% Year on Year with the Eastern Cape showing the most growth over the same period at 18.2% followed by Gauteng at 16,4% and KwaZulu Natal at a marginally less at 16,3%.
Sean, who runs Cash Crusaders based on his 3D approach of Discipline, Determination and Dedication, attributes this recovery to a team of dedicated franchisee owners who have been in the stores working the floor and managing their inventory and stock levels across the 3 profit centres relevant to and for the customers they serve.
Cash Crusaders has also been incredibly proactive in driving activity across their new business units that were developed and deployed during lockdown. “In a move to meet the demands of the ‘new norm’, we have now started buying and selling via WhatsApp video and have ramped up our focus of buying goods from customers in the comfort of their homes for even greater convenience,” says Sean. He says that these intentional decisions have been undertaken to ensure that the business continues to meet the needs of the community and customer – even amidst challenging times.
Cash Crusaders has also seen an interesting trend emerge in the New Goods profit center where customers appear to be looking for quality at affordable price points, not necessarily high street brand names. “Our Private Label Offering – that does not compromised on product quality, appears to be doing really well across our store network with June sales being 50% up YoY and a 42% increase in July,” observes Sean.
Cash Crusaders’ second-hand profit center has seen an increase of 16% in gross profit sales YoY growth which is surprisingly lower than its new goods gross profit sales growth of 33,6% amidst a recession.
“These numbers simply prove how resilient the profit center model we operate within our business is,” concludes Sean.
For more information on owning your own Cash Crusaders franchise, visit the Cash Crusaders website, LinkedIn, Facebook, Twitter, Instagram or YouTube channels.
About Cash Crusaders
Cash Crusaders started in 1996 in Plumstead, Cape Town. Today, the group sells its own branded range of quality new goods, a wide range of pre-loved goods, and offers short term secured loans – three profit centres enabling it to be resilient through any economic circumstance. The market-leading retailer operates through more than 220 stores in Southern Africa, with annual revenues exceeding R2 billion Rand. Cash Crusaders supports a crime-free South Africa and franchisees work closely with local policing forums and take all necessary precautions to avoid dealing in stolen goods, whilst offering a safe and convenient place for customers to trade their pre-owned goods.
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