On the back of strong franchise growth reported by the Franchise Association of South Africa (FASA) in their latest franchise surveys, Cash Converters, a member of FASA, has shown strong growth with its number of stores expanding by almost 15% in 2017. By the end of November 2017, the company had opened 11 new stores that year. According to CEO Richard Mukheibir, “we are well into the company’s expansion plan and aim to add a further 20 stores to the network in 2018. Buying a franchise remains a buoyant opportunity because it provides you with a business of your own in an environment of reduced risk as you are part of a proven business model.”
In 2017, the company’s 84 franchise stores processed in excess of 2.2 million transactions, consisting of second-hand goods, pawn-broking and micro loans, with a combined value of over R1.4 billion. The company’s growth is on a par with the growth of retail franchising as reported by the FASA/Sanlam survey. This underlines the persistent popularity of retail despite the bad news about high-street names, says Mukheibir. In addition, the second-hand market is thriving because it chimes with the ‘reduce, reuse, recycle, repurpose’ theme of our times.