John and Gloria Hollingsworth have been in the book business for nearly 18 years, and as Book City franchisees were part of the group bought by Collins’ two years ago. The rebranding to the Collins name took place in early 2010.
“One of the big advantages of branding was gathering a greater number of stores under one banner,” says Hollingsworth. Although a united group, the two book businesses were seen by publishers as separate for purchasing purposes. “You negotiate with a range of suppliers, and the terms depend on the size of the group. This gives us a lot more clout,” Hollingsworth explains.
Once the new branding was completed, there was no doubt that the bookstore reaped some benefits, he says. “From our point of view, it probably translated into a slightly better gross profit margin. Better deals were able to be done on catalogues.”
The refit of the store also generated awareness in the community, boosted by a marketing campaign funded by the franchisor.
“We did receive some favourable comments. I felt the refit gave the shop a really good lift. And it gave Gloria and I motivation, we could see the benefits accruing. The impact of the Collins brand change has dissipated but to me it still retains oomph.
“You have to keep changing, all the time. As soon as something is looking tired, do something about it. It has the effect of increasing sales.”