Mobile operator Cell C is franchising the majority of its retail stores, in a move it says is “in line with the strategy to leverage partnerships and collaboration to boost revenue and drive growth”.
In a statement, the telco says the decision follows a review of its service model and a benchmark exercise on the current 47 stores that are company-owned.
“Our franchise model has proven to be successful, with franchising stores performing 14% better,” it says.
It notes the plan is to franchise 44 company-owned stores and retain three stores, namely Mall of Africa, Gateway and Canal Walk.
Cell C will also implement enterprise and SMME development with staff to provide the opportunity to purchase stores as franchisees, with a "rigorous and fair" selection process focused on branch staff. The process is expected to take a minimum of three months.
It points out that jobs will be retained, staff contracts will be transferred to franchisees with the same employment terms and conditions, with Cell C's involvement in ensuring a seamless transfer.
“This move will allow us to create a more focused approach to our strategic imperatives, while retaining control of our brand, and will continue to invest in the store branch expansion to extend our footprint coverage, which contributes to job creation and driving entrepreneurship."
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