News: Franchise model key to United Carpets

Rotherham-based United Carpets continues to be well positioned despite the volatile market demand due to the economic uncertainty over the last two years.

With their head office at Bramley, United Carpets operates 82 stores and directly and indirectly employs over 450 people.

With the majority of stores operating under the group's franchise model, the business benefits from the entrepreneurial drive and motivation of the individual store owners which, the company believe, is a critical advantage over more traditional retail networks.

A statement following Thursday's Annual General Meeting stated that like-for-like sales fall by 5.5% during the the 25 weeks to September 30 but customers may look to buy before VAT rises in January. In August the group reported that profit before tax and exceptional items increased by 7.3% to £1.463m for the year ended 31 March 2010.

Since March, three new franchised stores have opened and two stores have closed. Four stores have been taken back into the corporate arm and five have been re-franchised.

United Carpets currently operate from 73 franchised stores and ten corporate stores and stated that they have in place "an excellent pipeline of potential franchisees many of whom have already made a significant financial commitment to join the group."

The statement also read: "The Group's long term future remains sound supported by positive cash balances, an expanding store portfolio and a well established brand."

United Carpets website


Images: unitedcarpetsandbeds.com