The success of CeX
Initial Investment Required £250,000 + VAT
CeX (Complete entertainment eXchange) was launched nearly 20 years ago and has developed into an international franchise success with more than 115 stores in the UK, as well as, growing outlets in Spain and the USA.
The CeX business model allows customers to buy, sell and exchange a focused yet complementary range of products including mobile phones, video games, DVDs, computers, digital electronics and CDs. Uniquely all goods are second hand, tested in store and sold with a 12-month warranty.
"Customers can sell their unwanted goods to CeX for cash or exchange them for something they want, offering unrivalled value for money," explains the company's Franchise Director Hugh Man. "As CeX sets the buy and sell prices, the margins are significantly higher than new retailers. Customers get the convenience of fixed prices and instant cash for their old goods."
CeX was launched at a time when increasing advancements in technology was rapidly increasing the need to recycle. In fact, the first CeX store was opened just off London's Tottenham Court Road - the capital's electronics and computer heartland.
After launching several stores in the London area, CeX expanded into the Midlands, opening in Birmingham in 1997. A year later, the company opened further stores in Watford, Hounslow, Bromley, Kingston and Leeds. CeX was ahead of the trend for online shopping and launched Webuy.com in 1998 that not only sold to customers, but also bought their old games and gadgets from them for cash. Webuy.com also allows customers to find out prices and which stores have their desired item in stock 24 hours a day.
The first franchised CeX store opened in Croydon in 2004 and there are now over 55 franchised stores in the UK. New franchise owners receive hands-on experience in a CeX store and extensive training. Support is on-going with a dedicated Franchise Manager only a call away and specialists from the CeX support centre available to give advice on areas such product testing, loss prevention, IT and marketing.
Crucially pricing data from a team of experts is updated daily into the bespoke CeX EPOS systems in every store, this is a system that CeX has refined with nearly 20 years of experience.
New CeX stores are opening across the country nearly every week. It's testament that CeX's uniquely focused business model is more than just recession proof. As technology and entertainment products continually evolve to satisfy new demands and awareness of the need to recycle grows, CeX is ideally placed to profit.
Reported by Tiffany Brooking reports