Cash Generator
Cash Generator is a UK-based operator of discount retail stores. Headquartered in Bolton, Greater Manchester, the company opened its first Cash Generator store in the centre of Bolton in 1994 and by the beginning of 2011 had expanded to over 130 stores, many of which are operated by franchisees.
The company describes itself as 'The Buy, Sell & Loan Store'. Its core business is the buying and selling of pre-owned domestic goods, mostly electrical and entertainment goods. From this it has diversified into a number of other personal financial services such as cheque cashing, money transfer and payday loans.
History
Cash Generator was founded in 1994 by British businessman Brian Lewis. Having noticed the success of a similar business in the U.S., he decided to emulate the business model in the UK and opened his first store in Bolton, Greater Manchester in 1994.[2] At that point, the business was named Paragon Pawnbrokers Ltd.[3][4]
Company name
Within the first year of opening, the company changed its name to Cash Generators. Brian Lewis decided upon the name after changing other elements in response to customer feedback: "When theory hits practicality, practicality always wins. For instance, the original name was 'Paragon', but we changed it because it didn't say what we did. We are a 'cash generator'."[5]
Initial growth and expansion through franchising
After expanding the chain to five stores in the north of England, Lewis decided to sell his other business holdings to concentrate on franchising Cash Generator throughout the UK.[6][7] The first franchised store opened in 1997.[8] Since then, the company's growth has been driven by the opening of franchise stores. At the beginning of 2011, over 100 of the company's stores are owned and operated by franchisees. One in three Cash Generator franchisees open more than one store.[9] The company claims to have identified 500 potential sites for future stores.[8]
Addition of out-of-town stores
In 2009 the company launched its new 'Express' store concept for out-of-town retail locations. The first outlet opened in Stretford, Manchester in 2009, followed by a second franchise-run location in Birmingham. [10]
Operations
As of January 2011 there are 134 Cash Generator stores operating in the UK,[11] the majority of which are franchise operations.[12][13] A further 18 stores are planning to open during 2011. The average store receives 5,000 visits a week.[14] In 2009[15] the company launched CashGenerator.co.uk as a fully transactional website that allows customers to browse and shop online. [16]
Retail operations
The company's core retail activity is the buying and selling of second hand goods, mostly electrical and entertainment goods such as televisions, laptops, game consoles, hi-fi equipment, mobile phones and cameras. Other lines include gold jewellery, musical instruments, toys and domestic goods. The stores also sell new and graded domestic goods. For purchasing customers the company offers a 12 Week Plan, which involves leaving a 20% deposit on any item and paying the balance over the following 12 weeks.
Buying Counter
In eash store a Buying Counter offers customers instant valuations on their items. The company's Sale & Buy Back service gives the customer the option of buying back their goods at a higher price within 28 days.[17][18] The company only buys goods from over-18s[19] and takes two forms of ID, including photo identification and proof of address, to avoid fraud.[20] Since operations began in 1994, the company claims to have purchased over 30 million individual items from the UK public.[21]
Financial services
Since the opening of the first store the company has offered cheque cashing for customers, who can cash various cheques such as wages, compensation, inland revenue or repayment cheques in store for a handling fee plus a small percentage of the value of the cheque.[22] Over time the company has expanded into other areas of cash-based financial services.[23] Some of these services are offered in partnership with third parties.
- Short term lending. Customers can apply for instant cash loans ("payday loans") of up to £700 via the company's website.[24] Customers who own a car can also access loans between £500 and £50,000 through the company's partnership with Logbook Loans.[22]
- Pawnbroking. Through its pawnbroking service the company offers customers loans for up to 6 months on their gold and jewellery. This service is not yet offered at all stores[25] and managing director Julian Urry says pawn broking currently accounts for about 1 per cent of group business.[14]
- Prepaid card. The company also offers a prepaid payment card, branded the Freedom Prepaid Mastercard, in partnership with a third party provider, White Eagle.[26]
- Foreign currency exchange. Currency exchange is offered in store on 60 currencies.
- Money Transfer. Cash Generator customers can transfer money to recipients worldwide using the Western Union money transfer service.
- Debt advice. Through a partnership with Chiltern Debt Management the company now offers debt advice to customers, which is free at the point of enquiry.
Corporate affairs
Since its foundation in 1994 the company has shown year-on-year growth in all its income streams in every year it has been trading.[27] In 2009 the total retail sales of the group amounted to £73.6 million; overall gross profits were £30.1 million. [28]
Directors
Julian Urry, the company's Managing Director, joined Cash Generator in October 2004.[29] Before that, he had worked for six years as CEO of competitor company Cash Converters.[30] The company's financial director is Steven James Wilkinson.
Management buyout and subsequent acquisition
On 9 April 2008 three directors, Julian Urry, financial director Steve Wilkinson and franchising director Robin Page, with additional finance from New World Corporate Finance bought out founder Brian Lewis, forming a new company (Cash Generator Holdings Limited) in the process.[31] Lewis remained as a shareholding non-executive director.
In December 2010 the company was acquired by U.S.-based financial services group Axcess Financial for an undisclosed sum.[32]
Franchise model
Since 1997, the business has grown mainly through franchising. The total investment required to start a Cash Generator franchise has been estimated between £200,000[33] and £250,000.[34] Of this figure, between £70,000 to £80,000 is expected to be personal investment.[35] The company is currently inviting applications from Master Franchise partners for overseas markets in Europe.[36]
Logos and slogans
Stores originally carried the strapline "The Buy & Sell Store". To reflect the increasing availability of financial services, the slogan has been updated to "The Buy, Sell & Loan Store".
Charity connection
The company's adopted charity since 2008 is the Make-A-Wish Foundation (UK). The charity's logo appears in the company's TV advertising.[37]
Trade Bodies and Accreditations
The company has the following memberships and accreditations:
- Full members of British Franchise Association[38]
- Members of BCCA (British Cheque & Credit Association)
- Investors in People-registered provider of training and development.[39]
References
- ^ "High Street Value Retailer Reports Record Year End". http://www.cashgenerator.co.uk/news/high-street-value-retailer-reports-record-year-end-85.
- ^ Cash Generator: About Us http://www.cashgenerator.co.uk/
- ^ "Companies in the UK: Cash Generator". http://www.companiesintheuk.co.uk/ltd/cash-generator. Retrieved 2011-05-10.
- ^ "Jordan's Company Index". http://www.jordans.co.uk/CompanyIndex/c/ca/cas/02258951/cash_generator_limited.html. Retrieved 2011-05-10.
- ^ The Franchise Magazine. http://www.thefranchisemagazine.net/page/brian-lewis-bfa-chairman-founder-of-cash-generator.php. Retrieved 2011-05-11.
- ^ "Brian Lewis: Profile". The Franchise Magazine. http://www.thefranchisemagazine.net/page/brian-lewis-bfa-chairman-founder-of-cash-generator.php. Retrieved 2011-05-11.
- ^ "Company informational DVD for franchisors featuring MD Julian Urry discussing Cash Generator franchise opportunities in 2008". http://www.youtube.com/watch?v=QtcCrr0n_84. Retrieved 2011-05-11.
- ^ a b "Cash Generator - Information for Franchisees - 'About Us'". http://franchise.cashgenerator.co.uk/about-us/. Retrieved 2011-05-10.
- ^ http://www.thebfa.org/casestudies.asp?id=178&pagetype=include
- ^ "Cash Generator franchise launches new express store concept". Which Franchise. 01-Feb-10. http://www.whichfranchise.com/news_template2.cfm?ArticleID=1712. Retrieved 12 May 2011.
- ^ http://michaelblankandco.com/?page_id=6
- ^ http://www.insidermedia.com/productsandservices/archive/nwbi/march_2009/cash_is_king/index.html "Only 17 of Cash Generator's stores are controlled from the centre"
- ^ "Cash Generator primed for expansion". http://menmedia.co.uk/manchestereveningnews/news/business/s/1044616_cash_generator_primed_for_expansion. Retrieved 2011-05-09.
- ^ a b "Cash is king". Insider Business magazine. March 2009. http://www.insidermedia.com/productsandservices/archive/nwbi/march_2009/cash_is_king/index.html. Retrieved 2011-05-11.
- ^ http://www.prnewswire.co.uk/cgi/news/release?id=275836
- ^ "An Award Winning, Discount Retail Franchise Success Story". http://www.theukfranchisedirectory.net/page/cash-generator/915203.php. Retrieved 2011-05-12.
- ^ Glendinning, Caroline and Kemp, Peter, Cash and care: policy challenges in the welfare state, The Policy Press, 2006, page 97
- ^ Collard, Sharon and Kempson, Elaine, Affordable credit: the way forward, The Policy Press, 2005, page 3
- ^ http://cashgeneratorboston.co.uk/faq.php#5
- ^ "Cash for goods". http://www.cashgenerator.co.uk/services/cash-for-goods. Retrieved 2011-05-09.
- ^ "CASH GENERATOR LANDS ITS LATEST STORE IN NORTHAMPTON". http://www.whichfranchise.com/news_template2.cfm?ArticleID=1305. Retrieved 2011-05-11.
- ^ a b http://cashgeneratorboston.co.uk/services.php
- ^ http://www.youtube.com/watch?v=eA9uTEzuWog, Franchise Director Robin Page speaking at a franchise exhibition, uploaded 2010-4-16, accessed 2011-05-10
- ^ http://www.cashgenerator.co.uk/services/cash-loans
- ^ "Cylex: Cash Generator". http://www.cylex-uk.co.uk/company/cash-generator-17717009.html. Retrieved 2011-05-10.
- ^ Cash Generator Prepaid Card. http://www.cashgenerator.co.uk/index.aspx?pageid=208
- ^ "Cash Generator franchise - Youtube.com". http://www.youtube.com/watch?v=QtcCrr0n_84. Retrieved 2011-05-11.
- ^ "Become a franchisee: International opportunities". http://franchise.cashgenerator.co.uk/become-a-franchisee/international-opportunities/. Retrieved 2011-05-10.
- ^ Insider Business article
- ^ "Hooked on retail". Manchester Evening News. April 16, 2009. http://menmedia.co.uk/manchestereveningnews/news/business/s/1108786_hooked_on_retail. Retrieved 2011-05-08.
- ^ "Cash Generator Holdings Limited Acquires Cash Generator Limited". http://www.prnewswire.co.uk/cgi/news/release?id=224138. Retrieved 2011-05-12.
- ^ "Cash Generator sold to US financial services group". Manchester Evening News. December 7, 2010. http://menmedia.co.uk/manchestereveningnews/news/business/s/1388232_cash_generator_sold_to_us_financial_services_group_. Retrieved 2011-09-08.
- ^ http://www.youtube.com/watch?v=eA9uTEzuWog, Robin Page, Franchise Director, speaking at a convention, uploaded 2010-4-16, accessed 2011-05-10
- ^ "Retail franchise, advice from Cash Generator". http://newpaydayloans.fastpaydayloans.cc/2011/05/04/watch-retail-franchise-advice-from-cash-generator-2/. Retrieved 2011-05-08.
- ^ "Cash Generator Franchise". whitecollarfranchise.co.uk. http://www.whitecollarfranchise.co.uk/News/CashGenerator/1560. Retrieved 2011-05-12.
- ^ "International Opportunities". http://franchise.cashgenerator.co.uk/become-a-franchisee/international-opportunities/. Retrieved 2011-05-10.
- ^ "Cash Generator MD raises money for Make a Wish". 2010-06-04. http://www.cashgenerator.co.uk/news/cash-generator-boss-in-the-saddle-for-charity-89.
- ^ "BFA members list". http://www.thebfa.org/members.asp?category=4. Retrieved 2011-05-10.
- ^ "Job listings: Monster.co.uk". http://jobview.monster.co.uk/index-67685760.aspx. Retrieved 2011-05-10.
External links