Cash Generator

History

Cash Generator was founded in 1994, by British businessman Brian Lewis. Having noticed the success of a similar business in the United States, he decided to emulate the business model in the United Kingdom, and opened his first store in Bolton, Greater Manchester on Valentine's Day 1994. After opening 15 corporate stores in the North of England, Lewis launched the franchise network, opening the first franchise store in 1997.

Cash Generator has rapidly expanded in recent years, opening 28 new corporate stores each year, and 21 new corporate stores in 2011. The company opening 12 new franchise stores in 2012, and 29 new franchise stores in 2011. In January 2013, Cash Generator recruited a new managing director, Allan May, who had previously been head of operations at Comet, whom ceased trading the previous month.

In April 2014, Cash Generator unveiled a new logo.

Company name

Within the first year of opening, the company changed its name to Cash Generator. 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'."

Ownership and acquisitions

Cash Generator was 100% owned by Lewis from February 1994, until April 2008, when a management buyout was staged by three directors and in conjunction with New World Corporate Finance. The acquisition meant that the founder Lewis was bought out, remaining as a shareholding non executive director. The three directors included Julian Urry, Managing Director of Cash Generator, from 2004, previously CEO of Cash Converters, Robin Page, Franchise Director and Steve Wilkinson, Finance Director.

Expansion through franchising

Today, two thirds of Cash Generator stores are owned and operated by franchisees, with many franchisees opening multiple stores, with some owning up to 12 stores.

Addition of out-of-town stores

In February 2010, the company launched its new 'Express' store concept, opening stores on select trunk roads and arterial routes with high visibility and easy access for local residents.

Operations

As of May 2015, there are 223 Cash Generator stores operating in the United Kingdom, the majority of which are franchise operations.

The average store receives 5,000 visits a week. In 2009, the company launched CashGenerator.co.uk as a fully transactional website that allows customers to browse and shop online.

Retail operations

Most Cash Generator stores have three counters; retail, buying and financial.

The core businesses activity is the buying and selling of second-hand goods, mainly electrical and entertainment products such as TVs, DVDs, games consoles, mobile phones, cameras, laptops, tablets and musical instruments. In addition to second hand items, the stores also sell new and refurbished domestic goods.

Buying Counter

In each Cash Generator, the buying counter offers customers cash for their unwanted household goods and gold. The retailer also offers a Bring "n" Buyback service, offering customers the opportunity to sell an item for instant cash but with the option to buy back the goods within 28 days, or renew for another 28 days. In addition, Cash Generator offers a pawnbroking service, turning gold or jewellery into cash with an unlimited 6-month loan against the value of goods.

Cash Generator only buys from over 18s, and two forms of ID are required, including photo identification and proof of address to avoid fraud. Since 1994, Cash Generator claims to have purchased over 35M items from the public in the United Kingdom.

Financial services

Cash Generator offers a range of financial services, including cheque cashing, money transfer, foreign currency exchange and pre-paid cards. The company has a partnership with Western Union. In 2015, the company ceased issuing short term loans as instructed by the FCA due to historic irresponsible lending practices.

Corporate affairs

Since its establishment in 1994, the company has shown year-on-year growth in all its income streams in every year it has been trading. In 2009 the total retail sales of the group amounted to £73.6 million; overall gross profits were £30.1 million.

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. Lewis remained as a shareholding non-executive director.

In December 2010, the company was acquired by United States-based financial services group Axcess Financial, for an undisclosed sum.

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 and £250,000. Of this figure, between £70,000 to £80,000 is expected to be personal investment. The company is currently inviting applications from Master Franchise partners for overseas markets in Europe.

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

Since 2008, the company's adopted charity is the Make-A-Wish Foundation (UK). The charity's logo appears in the company's TV advertising.

Trade Bodies and Accreditations

The company has the following memberships and accreditations: