Perekrestok is a popular supermarket in Russia. Management applies franchises for business development. This provides a chance to open a trade with a high turnover. The minimum investment is 7 million rubles, and the payback is about 8 months. Read more about the Crossroads franchise in the article.
Franchisor Information
The first point was opened in 1995 in Moscow. The supermarket chain has been actively developing, and by 2010 the results reached $ 2.7 billion and more than three hundred points in Russia and Ukraine. These supermarkets include the Green Crossroads, where, in addition to ordinary goods, delicacies are sold.
The Perekrestok Express franchise is a store that always has fresh products: bread, vegetables, milk, fruits and vegetables. Half of the retail space is occupied by fresh and food & go goods. For sale there are household chemicals, hygiene products and stationery. Much attention is paid to the comfort of trading floors and the choice of goods. Shops are targeted at middle-income people.
Secrets of Success
The Perekrestok network offers products of excellent quality. This is carefully monitored by store staff. For buyers there is a promotion “I am responsible for the quality!” If a person finds expired goods, he receives a reward at its cost.
Due to a partial outflow of customers and a lot of competition, in 2014 the store underwent rebranding. The logo was updated - clover and green background. This indicates the availability of fresh products. The trading floor and other areas were affected by the transformation. All rooms are designed for a comfortable selection of products.
Price
Compared to other types of business, the cost of the Perekrestok franchise is low. The main expenses include:
- Lump-sum payment - 295 thousand rubles.
- Royalty - 3% of gross revenue.
- Insurance premium - 0.7% of the loan limit amount.
- Agent reward - 25%.
- The cost of arranging the store - 10 thousand rubles per square meter. m
- Cash and trade equipment - 3 million rubles.
- Advertising and branded clothing - 180 thousand rubles.
- Purchase of a license for alcohol - 450 thousand rubles.
There are no marketing payments. The entire cost of launching the Perekrestok store is 200-300 square meters. m is about 7 million rubles.
Principles
Opening a trading institution is carried out by reverse franchising. This means that the franchisor delivers 80% of the assortment under an agency agreement. And according to the result of sales, the franchisee receives 25%.
The Crossroads franchise is attractive because of a payback of 6-24 months. The average monthly income is 800 thousand rubles. This is quite a profitable business, since not every business expects such results.
Conditions
Partners can be owners of large-format premises, supermarkets, chains, private investors. The terms of cooperation include:
- The cost of the franchise is 1-1.5 million rubles.
- Investments - from 27 million rubles.
- No royalties.
- The number of employees is 50 people.
- Agent reward - up to 25%.
- Sales region - Russia.
pros
The benefits of the Crossroads franchise include:
- Work under a famous brand.
- The offer of ready-made design projects for the retail premises, shop windows and the exterior.
- Ready-made assortment and pricing policy.
- A start command is provided.
- Employee training.
- Logistics organization.
- Support and control for 2 weeks.
- Counseling throughout all stages.
The main advantage is the delivery of goods by one transport from one distribution center. In this way, 80% of the products are supplied, which facilitates the purchase.
Store location
The franchise store “Crossroads” may be opened upon fulfillment of certain requirements. They relate to the place of opening of the trading establishment:
- Crowded area. The store may be located at crossroads of pedestrian or traffic lines with significant traffic.
- Excellent visibility of signs from different angles throughout the day.
- The presence of equipped porches, parking, pedestrian areas.
- Existence from the back of entrances for trucks of Scania type dimensions.
- Purchasing power of an average or higher level - an average check of 500 rubles.
- It is important that there are no such trading establishments within a radius of 150 meters.
Room
To open the Perekrestok store, you need to choose a suitable room. The main requirements for it are:
- Area - from 120 square meters. m
- The presence of utility networks: water supply, sewage, heating, ventilation, electricity with a capacity of 35 kW.
- Availability of fire safety equipment with automatic fire extinguishing.
- Lighting on the trading floor - from 800 lux, offices and warehouses - from 400, transport aisles - from 200.
- High-speed Internet and internal telephone exchange on 5-7 lines.
- Unloading unit for pallets for 2-3 places.
The sign of the store should be visible from different angles, and at different periods of the day.
Employees
For the work of supermarkets requires a large number of employees. They must undergo training in a special center located in the central office. Managers and line staff need to do internships in supermarkets.
To improve business efficiency, specialists accompany franchisees throughout all stages of cooperation - during the preparation, opening, and optimization of business processes.
The nuances of cooperation
The leaders of the network to open new stores are considering Moscow and the region, which is difficult for entrepreneurs in other regions. But having a successful business plan, confidence in success, and enough funds makes a difference.
If you start a business under a well-known brand, it will develop successfully. This is almost a 100% guarantee of a quick return on investment and a stable profit. A businessman gets the opportunity to work under a well-known brand, as well as receive help from him for the beneficial promotion of the business.
Requirements
To open a store under the Crossroads franchise, you must:
- Register as a legal entity.
- Have enough investment.
- Rent a room for a long term or buy your own.
- Conclude a service contract: utility, repair and construction, collection.
- Get an alcohol license.
- Perform repair, decoration and equipment of the store.
Most of the goods come from the distribution center of the company. But alcohol is purchased directly from suppliers. Reviews about the Crossroads franchise can be found different. Most of them indicate a profitable business, given all the nuances of its organization.
Do I need to acquire a franchise?
In order for the store to have good sales, you should choose the Perekrestok franchise. Many entrepreneurs, if they want to save money, open small shops with products that can not withstand competition with many supermarkets.
When starting a business on your own, there is no certainty that this business will develop successfully, since there is no one to consult with. Difficulties may arise in everything - when searching for premises, recruiting employees, and purchasing equipment. Problems will also affect the search for quality products and the creation of advertising. Therefore, beginners should purchase a ready-made business. Buying a franchise allows you to open a profitable and recognizable store.
Thus, to open a supermarket, you need to choose a successful area where there are almost no competitors. The franchise will allow you to open a profitable business in sleeping areas far from hypermarkets. But keep in mind that there should be enough population. Then opening a store will really be a profitable business.