Parable Acquires IRG/Lemstone
(December 18, 2007) – Parable Franchising, LLC has acquired Insight Retail Group, parent company of Lemstone Christian Stores, solidifying Parable's position as the No. 2 buying force in CBA with more than 200 stores overall.
In the deal, set to close December 31, 2007, Parable will obtain ownership of Insight Retail Group assets, including store contracts and agreements. Parable will continue to serve the independently owned stores of Insight Retail Group without interruption.
"We're thrilled to welcome Insight's stores to the Parable family," says Parable CEO Steve Potratz, whose company currently serves 118 member and 64 franchise stores. "This is a great opportunity for all of us to learn from one another. Our stores will see positive improvement from Insight's operational and buying expertise, and Insight stores will benefit from the marketing and merchandising strengths of Parable."
Insight Retail Group, based in Wheaton, Illinois, manages three store divisions: Lemstone Christian Store franchises, non-franchise Insight Retail Associate Affiliate stores and Church Bookstore Solutions, which offers development and operational support services for church-based bookstores.
"This is a major win for franchising in Christian retail. It means more stores under a common brand, broader reach and enhanced vendor clout," continues Potratz.
Both Potratz and Insight Retail Group President Scott Macdonald expect store owners in each group to see improved gross margins, greater return and increased traffic.
"Joining our stores with Parable just makes sense," comments Macdonald. "Consolidation in our industry is inevitable, and by connecting to a larger store group now, our stores will immediately be able to take advantage of economies of scale previously unavailable to them."
Improved data services, upgraded training programs and increased vendor benefits are just a few key areas in which Insight stores should see gains.
"Parable has served as a marketing group for independent Christian retailers for more than 20 years," explains Rod Huff, Parable vice president of franchise operations. "We have invested heavily in data management, a new merchandising program and market research to maximize the effectiveness of our marketing and merchandising efforts."
When it comes to opening new stores, Insight Retail Group has proven to run an effective program, opening two brand-new locations in the last two months alone.
"We believe franchising is the future for independent Christian retailers," says Potratz. "Insight's model for opening new Christian retail locations will be invaluable as we seek to grow the Parable franchise and resoundingly impact the Kingdom of God."
Lemstone franchisees and Insight Retail affiliates will immediately begin to use Parable promotions as member stores. In the interim, Parable will operate two separate franchise systems, with the goal to consolidate as many stores under the Parable franchise brand as possible.
For more information contact Gary Weyel, Parable marketing and communications strategist, or visit www.parablegroup.com. The Parable Group is based in San Luis Obispo, Calif.
