HiQ Presents Strong Turnover Growth in 2010 Year to Date
Speaking at HiQ’s franchisee conference, Juergen Titz presented strong turnover and gross profit figures in 2010, suggesting that the network’s “shift from an account driven chain to a retail driven chain since 2008” is bearing fruit. In 2009, turnover was up 11.8 per cent, though the real story is in the breakdown: retail turnover was 21.7 per cent up, while local and national account business was down 6.6 per cent. In 2010 year to date figures, Titz said the company had seen fleet business “picking up”, amassing a 4.7 per cent increase in quarter one and an 11.8 per cent jump in March versus March 2009.
Retail was also up 10 per cent in quarter one and 11.2 per cent in March, leading to total rises of 8 per cent (Q1) and 11.4 per cent (March 2010) respectively. The numbers of tyres sold and footfall revealed a correlating pattern, as one would expect, showing the results of the repositioning of the HiQ business, which Titz characterised as seeing account business as “the cream on top of the cake”. His presentation then focused on an extended pep-talk for franchisees, outlining the corporate message that HiQ is to be a “national brand, executed by local heroes” – a reflection of the consistent corporate branding present in the new marketing initiative (see below).
HiQ franchise manager, Peter Tye then outlined the development of HiQ in the preceding years, and the plans to grow the network; first by 50 sites in 2010, then the stages by which HiQ aims to reach “300 stores by 2014”. As of 30 April, 2010, HiQ had 139 locations, run by 46 companies with between one and 24 sites (“there is a strong level with 2-5 stores”).
The 50 store planned growth will be achieved in three categories, Tye continued: “we estimate 20 will be run by existing franchisees, 20 will be new entrants and 10 will come from partner migration.” HiQ is offering stock deferment, a “pounds on the tyre policy” and signage support to help encourage this growth. He also extolled the benefits of the new corporate identity refurbishments, talking about a “21-25 per cent increase in business” in five fully revamped stores. In terms of marketing too, Tye said six campaigns have been decided to support the corporate identity – the 6 Nations campaign and the new “local heroes” campaign being the first two.