Franchise holders at Bargain Booze and Wine Rack can now source 10% of their goods from outside the Bestway Group as part of updates the company has made to contracts following its purchase of the Conviviality Retail division in April.
The updates to the agreement with franchisees include the ability to source up to 10% of goods from outside the company as well as simplified paperwork, 21 days credit on all orders and fewer retro payments, sale or return.
The changes also apply to Select Convenience and Central Convenience – a total of over 2,000 stores – and were communicated to retailers in a number of recent regional meetings.
The measures have been put in place to improve cash flow with an additional scheme put forward that will allow franchisees to earn up to a 4% rebate on wholesale spending across the Bestway Group.
Bestway Retail managing director, David Robinson, said: “Many of our franchisees were impacted by the disruption they had recently experienced, so it was important that we met with as many of them as possible. We wanted to not only communicate our new improved proposition, but also to listen to them and respond to as many questions as possible as we begin to build the plans for the future.
“It’s vital that we meet the needs of our retailers and, by limiting the amount of paperwork, this frees up franchisees’ time for developing their business. The reduction in the number of products franchisees are required to purchase through the company gives store owners the opportunity to support other businesses and provides shoppers with locally sourced products which may not be available centrally.
“The most important thing is that we get the customer offer right. Increasing the number of lines to franchisees allows them the opportunity to widen their range and customer base and increase basket spend and sales. The vast majority of franchisees have responded extremely positively to the new proposition.”
On 9 April this year, former UK drinks conglomerate Conviviality confirmed the sale of its retail division to Bestway for £7.25 million.
The Bestway Group was founded in 1976 and is the UK’s eighth largest privately-owned company. It includes Bestway Wholesale, the UK’s largest independent wholesaler, Best-one, which operates the franchises of over 1,113 convenience stores, Bestway Foodservice, a service for caterers and the hospitality trade, United Bank Limited, the second largest private bank in Pakistan and Bestway Cement, the largest cement producer in Pakistan. The group also operates Wells Pharmacy, the third largest pharmacy business in the UK.
Source: The Drinks Business