Franchise Industry Business News

Franchise Industry
Levi’s Embraces Brand History
After struggling against the new athleisure trend and fast fashion brands, Levi Strauss is having a renaissance moment. Levi’s gained fame as being the first denim brand and is today using it’s 165 year history as a way of standing out in a crowded fashion marketplace. US sales over the past year have increased 5% a return after several years of decline. Reacting to customers preference for comfort, Levi’s has introduced more stretch materials to it’s denim and offered a more diverse range of styles. Still these changes are not enough in an age where customers are spending less on clothes and more on technology and experiences. In light of these changes Levi’s is highlighting it’s storied history and implanting the idea that customers are buying a part of that history with their purchase. Millennial and Gen Z shoppers value authenticity more than anything. While younger shoppers are having fewer pieces in their closets, they expect the items they place their to be versatile, authentic and have lasting value. Attributes that Levi’s has chosen to highlight and so far the results seem to be effective.   Source:The Guardian  
Franchise Industry
Target Strives For Efficiency
US retailer Target has been investing in their physical stores and online operations to increase their efficiency and compete with online retailers like Amazon. Early 2017 Target embarked on a 3 year plan to invest $7 billion in stores and online operations. Since the announcement Target has remodeled stores and built in house brands. Target has also emphasized gearing stores to be shipping hubs that allow the company to cut shipping costs and increase the speed of deliveries. Stores are undergoing overhauls of backrooms allowing for the fast and efficient packing for orders. So far 130 Target stores have been revamped with backrooms featuring led lighting, order organization carts, and conveyer belts.  As a result Target is 25% more efficient in shipping online orders than it was in 2017. Target will also be able to offer 2 day free shipping over the holiday season. 90% of Target’s 2 day holiday orders are being handled at stores, stores featuring reconfigured backrooms handled 3 times more volume than the rest of the chain. The company plans to continue these efforts and fulfill the 3 year plan, that will allow the retailer to reach 24 hour turn around for orders.   Source :Chicago Suntimes  
Franchise Industry
Macy’s Remains Committed To Brick And Mortar Stores
Despite growth in digital sales, Macy’s continues to create value through brick and mortar locations. Although the company is experimenting with smaller locations, Macy’s CEO maintains that a mix of e-commerce, stores and mobile experiences is the key to long term success. The existence of stores also facilitates the popular buy online pickup in store (BOPS) or Buy online Ship to Store (BOSS) experience. “BOPS” and “BOSS” has been utilized by customers at higher rates than expected, prompting Macy’s to seize the opportunity to introduce the program to more stores. However, Macy’s has seen a decline in earnings reported in the third-quarter. To combat this Macy’s plan to reduce the size of its underperforming stores and introduce ‘neighborhood stores’. Macy’s is currently testing out ‘neighborhood stores’ and hopes to revamp 350 stores. Macy’s is optimistic with the growth of their digital business and sees brick-and-mortar stores as an important way to build value for existing customers and bring in new customers.   Source : MarketWatch  
Franchise Industry
Thailand PTTOR Cafe Amazon rolling overseas
Thailand PTT Oil and Retail Business Plc (PTTOR), the oil retail and non-oil business unit of PTT Plc, is gearing up to expand Cafe Amazon branches and lubricant products overseas to increase higher-margin businesses. The company is looking to expand into Malaysia, Singapore and Vietnam as part of its regional strategy, said Wisarn Chawalitanon, senior executive vice-president of PTTOR. The company has a presence in Cambodia, Laos, Myanmar and the Philippines, operating 223 Cafe Amazons and 225 petrol stations. Mr Wisarn said it will only focus on Cafe Amazon branches in Malaysia, Singapore and Vietnam because the three countries do not allow foreign investment in petrol stations. "The cafes will be stand-alone branches in company-owned company-operated [COCO] and franchise forms," he said. For Malaysia, Mr Wisarn said PTTOR is in talks with local companies to join Cafe Amazon through franchising. In Vietnam, PTTOR has yet to conclude its business plan because it has to wait for legal issues to be decided concerning its trademark. He said the cafes will operate using the COCO platform in Singapore, with three outlets in that country, expected to open in early 2019. "The first branch in Singapore will use digital marketing because market sentiment is ripe, in terms of digital facilities and active buyers," Mr Wisarn said. He said the Cafe Amazon branches overseas will have distribution channels for Thai snacks and bakeries from the local market, in line with PTT's plan to promote Thai products. For PTTOR's existing business operation, it plans not only to expand new branches of petrol stations and non-oil businesses, but also to enhance business efficiency and look for new businesses, involving oil and gas distribution. In Cambodia, PTTOR is in talks with local landlords for possible long-term land leases in order to establish a cooking gas business and wholesale operation as it aims to tap into high demand in that country. PTTOR also plans to increase its Cafe Amazon branches to 190 from 150 in Cambodia, to 80 branches from 51 in Laos, to 15 branches from four in Myanmar, and to 20 branches from eight in the Philippines. The cost of expansion is set at US$70,000 (2.31 million baht) per branch for locations at petrol stations, while there is a range of $150,000-300,000 is for stand-alone branches. As of August, PTTOR has 2,557 branches of Cafe Amazon. Of those, 2,389 shops are in Thailand.   Source: BangkokPost
Franchise Industry
PH officials visit Jollibee London store
A month before the schedules grand opening of Jollibee’s first-ever store in the UK, Philippine Cabinet secretaries and members were warmly welcomed with a red carpet to its flagship store by Jollibee Foods Corp. (JFC) chief executive Ernesto Tanmantiong and Dennis Flores, president and head of Jollibee International Business for Europe, Middle East, Asia and Australia. Coinciding with the Philippine Economic Briefing in London, where the Philippine delegation is to present their latest updates on various government programs to the UK-ASEAN Business Council, the delegation visited the store to show its support to the beloved franchise. The delegation included Finance Secretary Carlos Dominguez III, Trade and Industry Secretary Ramon Lopez, Tourism Secretary Bernadette Romulo-Puyat, Public Works and Highway Secretary Mark Villar, Transportation Secretary Arthur Tugade, Budget Secretary Benjamin Diokno and Socioeconomic Planning Secretary Ernesto Pernia. Likewise part of the delegation were Bases Conversion and Development Authority president and CEO Vivencio Dizon, Representatives Pia Cayetano and Wes Gatchalian, and Philippine Ambassador to the UK Antonio Manuel Lagdameo. Daniel Robert Pruce, UK ambassador to the Philippines, was also present in the store as a sign of support from the British community. Jollibee Foods Corp. (JFC) chief executive Ernesto Tanmantiong expressed his gratitude to all in attendance, “We are truly delighted and excited to be opening and introducing Jollibee to this part of the world. I, together with our Jollibee International and store teams, sincerely appreciate your presence in today’s event. We are sincerely humbled by your visit as we partner for economic progress and help contribute to bringing honor to our country, as we have done in other markets such as Vietnam, Brunei, Singapore and Hong Kong, we envision to successfully serve the delicious food and warm service of Jollibee not only to the Filipino community here but also to the local British people,” he said. The Jollibee UK store, which will open on Oct. 20, is among the target overseas branches that the homegrown fast-food chain is opening abroad, Macau and New York are the next target for the remainder of the year. With 12 brands with more than 4,000 stores across 20 countries, JFC has been Asia’s most valuable restaurant chain since 2013 and now continues to strives to be among the top five global restaurant chains.   Source: