We’re still open for business, says Thorntons store owner
FRANCHISE BOSS HITS OUT AT CHOCOLATE COMPANY AFTER ANNOUNCEMENT OF CLOSURES
THE owner of a chain of Thorntons franchise shops has insisted that he is still open for business despite what he says is misleading information from the company about store closures.
Mark Rees employs 40 staff across the seven Thorntons stores he operates as part of a franchise agreement with the retailer, which on Monday announced it was shutting all of its shops.
Mr Rees, who runs Allestreebased retail chain Penmark Cards, seven of which carry the Thorntons fascia, says that the announcement by the chocolatier’s parent company Ferrero implies that the brand is to disappear from the high street altogether.
But while that is the case for the 61 stores that Ferrero runs directly, 104 stores are run through franchise partnership agreements such as the one the company has with Mr Rees.
And now Mr Rees, who has other Thorntons-branded stores in Mickleover, Allenton and Swadlincote, says that the confusion caused by the announcement suggesting the end of Thorntons as a high street figure is only complicating matters.
The announcement, and the way it was done, he says, isn’t good for Thorntons nor for the franchisees still carrying the famous branding.
He says: “They want to have their cake and eat it. They want their brand on the high street but they don’t want to support us. They’re not pursuing options to keep those stores alive.
“There’s a network of over 100 franchise partners who have been completely forgotten in all this. They’re really finding it difficult. They’re all renegotiating rents and leases with their landlords.”
Mr Rees also has a separate partnership agreement with cards and gifts retailer Hallmark, and runs the seven stores with both brands under one roof. Of the seven Thorntons and Hallmark stores he operates, four are in Derbyshire, while the wider Penmark Cards chain is made up of 15 stores throughout Derbyshire, Yorkshire, Lancashire, Staffordshire and Shropshire.
Mr Rees first signed a contract with Thorntons in 1991, when the company was in its heyday. But, he claims, while times have changed and consumer habits have changed with them, Thorntons has remained stuck in the past unable or unwilling to adapt. He says: “In 30 years there hasn’t been a change in the contract between franchisor and franchisees. They’ve never evolved the franchise business. We’re at the point where they want to keep franchising digital but they don’t have a plan for it. They’ve not nurtured those relationships with the franchise partners.”
When the Derby Telegraph asked Ferrero about the situation following the announcement, Adam Goddard, Thorntons retail director, said: “We proactively communicated with all our franchise partners to reassure them that we remain committed to supporting them and continuing to supply their business with our Thorntons range.
“The Thorntons website store locator will continue to reflect the existing Franchise stores available to customers
“We will be discussing in detail with them how we can shape our future together in the upcoming weeks.
“Our retail franchise team is also available to address any immediate questions they may have.
“Our franchise partners, alongside our grocery partners and e-commerce, remain a key part of our strategy for the future of Thorntons.”
In the 1990s Thorntons was a staple of the high street and for many, dipping into one of its shops to pick up some luxurious chocolate treats was a part of a day out. But 30 years later, Mr Rees says this is no longer the case.
“Why did we sign up for a Thorntons franchise in the first place? Because it was a destination. It was the only place to buy the chocolate. It was special. That’s eroded.”
As times changed, and fewer people visited the stores, the company decided to shift its approach to selling products through other retailers, including the supermarkets.
It was a decision which Mr Rees believed at the time was a mistake because, he says, in the process the company lost control of the beloved brand and the ability to set prices for products.
Inevitably prices fell, particularly in the supermarkets.
With plenty already to worry about after 12 months in lockdown, after years of shifting consumer patterns, Mr Rees says he’s looking towards a new direction for Penmark Cards, which will involve walking away from Thorntons after 30 years.
“We don’t think this circle can be squared. In lockdown we have rebranded and refurbished a store in Lancashire. We’ll be removing the Thorntons brand from the fascia.
“The retail landscape in the future clearly has to adapt. People will still want to come to shops and come out. It’s just about where your stores are. “We need to be in locations where people want to go outside of just purely shopping. Retailers have to fill their stores with something more than just products on shelves.”
There’s a network of over 100 franchise partners who have been completely forgotten in all this. Mark Rees