Children's Orchard Anticipates 100th Franchise Store Opening In 1999

ANN ARBOR, MICHIGAN (Wednesday, May 26, 1999) - Children's Orchard, (CO), the original franchise retailer of children's resale stores anticipates opening the 100th franchise store in late summer, 1999, according to president, Walter F. Hamilton.
"Over the past six years we've grown at an annual rate of 20-25%. Today we're at 96 franchise stores and anticipate the 100th store opening in August," says Hamilton.

Children's Orchard resale stores feature quality "gently used" clothes, toys and equipment priced at 50-80% less than retail in an upscale retail atmosphere. New items are also sold.

Children's Orchard was founded in Newburyport, Massachusetts in 1980 by Karen Lynch, a former flight attendant. In 1993, Hamilton, a former master franchisee and book printing executive, purchased the company from the founder and moved the corporate headquarters to Ann Arbor, Michigan. Since that time, the Company has grown from 41 stores and will end the year at approximately 105 stores.

Systemwide sales for 1998 were 18 million and Hamilton expects sales to exceed 21 million in 1999.

He credits three key attributes to Children's Orchard growth, recruiting high quality franchisees, a focus on increasing stores sales and brand development.

"To begin with, most Children's Orchard franchise operators are women who come to us already accomplished in what they set out to do. Many are also parents themselves. They are looking for a unique business they can enjoy. They find the social responsibility of the business appealing and also want the financial rewards of being in business for themselves," he says.

"Secondly, controlled growth that focuses on increasing franchise store sales while maintaining realistic goals for increasing the number of franchise stores. Children's Orchard same store sales were up 7.4% in 1998.

"Finally, we look at marketing. We've spent nearly one-million dollars in advertising and public relations, making the Children's Orchard brand name known. In parts of the country where a Children's Orchard is new to the market, we always hear customers say they're glad we've finally arrived, they shopped in Children's Orchard elsewhere or read about us in publications," says Hamilton.

Hamilton adds that having a presence on the Internet has dramatically changed how people find out about the Children's Orchard franchise opportunity.

"We obtain 90 percent of prospective franchisees from our website and hot links as opposed to two years ago when most of our leads came from business publications and stores," he says.

According to Hamilton, in 1998 two-thirds of the people who purchased a Children's Orchard franchise found the company through the Internet. Currently, 100% of the franchises sold this year were purchased by people who located Children's Orchard on the Internet.

Although details will not be released until Fall 1999, Children's Orchard also plans to announce national sponsorship of a non-profit organization in support of a new program focusing on children and families.

View all Children's Orchard Press Releases

This article has been read 220 times.

Printer Friendly