1851

Being a business owner of a retail franchise can be a dynamic experience full of highs and lows. The retail segment is notorious for its fluid and ever-changing landscape, which can present some challenges for franchisees in this marketplace.<ol><li>Most Americans Shop Online&nbsp;</li></ol>It’s no secret that capitalism and the world wide web work well together. According to&nbsp;<a href="https://www.bigcommerce.com/blog/online-shopping-statistics/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546#5-essential-online-shopping-statistics" target="_blank" rel="nofollow">Big Commerce data</a>, 51% of Americans prefer to shop online. Many of these consumers are Millennials and those from Gen X, who spend 50% more time shopping online than other age groups.&nbsp;For retail franchises, it’s important to adopt technology and also be able to offer services or – at the very least – have a presence online. Since the internet is the first place that most shoppers turn, having the brand show up online is very important. More and more concepts are incorporating apps and different types of digital platforms to connect with shoppers in many ways.&nbsp;<ol start="2"><li>Estimating Overhead Can Be Difficult</li></ol>Rose Wheeler, a business writer with&nbsp;<a href="https://www.fool.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546" target="_blank" rel="nofollow">The Motley Fool,</a> points out how business owners often run into issues by ordering too much or too little inventory. An imbalance in product can create big ripple effects and financial implications for a business, and it's best that franchisees try to avoid that at all costs.&nbsp;“Keeping close relations with your manufacturers is always a good idea, as you can leverage things like renegotiating minimum order quantities to make placing bulk orders lighter,”&nbsp;<a href="https://www.fool.com/the-ascent/small-business/retail-management/articles/retail-challenges/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546" target="_blank" rel="nofollow">Wheeler wrote in a 2022 article</a>. “You can also employ markdowns and promotions to run through excess inventory.”<ol start="3"><li>Customers Are Less Brand-Loyal&nbsp;</li></ol>Brand loyalty has tapered off in popularity in recent years, likely largely in part to a saturated market full of competition and choices for consumers. Because there are so many options within each segment, shoppers have increasingly been trying new retailers and giving stores other than their favorites a try – be it because of a better price, a catchy ad or something else.<a href="https://huumon.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546" target="_blank" rel="nofollow">Huumon Creative,</a> a digital marketing agency,&nbsp;<a href="https://huumon.com/common-challenges-facing-the-retail-industry/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546" target="_blank" rel="nofollow">explains in a post</a> that “traditional customer loyalty programs such as special offers and promotions are still effective, but there is now a growing personalization trend. Maintaining communication with customers and getting to know them and their purchase habits is important to keep them loyal.”

3 Challenges to Owning a Retail Franchise and How to Overcome Them

1851 Franchise

Navigating success in the retail space takes adopting technology, being flexible with inventory and earning customer loyalty.

3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them

ServiceMaster Restore

ServiceMaster Restore - Disaster Response - 1851 Franchise

When Disaster Strikes, ServiceMaster Restore Moves

servicemaster-restore-disaster-response-carmen-coleman

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

One Hour Heating and Air Conditioning

Why One Hour Heating & Air Conditioning Sees People as the Power Behind Franchise Growth

one-hour-heating-air-conditioning-franchise-growth

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

3 Challenges to Owning a Retail Franchise and How to Overcome Them

MORE STORIES LIKE THIS