ReclaimHub — Operations & Store Model
The store model, the operating footprint, the refurbishment and the operations underpinning ReclaimHub.
Section 10 · Business Plan
Operations & Store Model
The store model, the operating footprint, the refurbishment and the operations underpinning ReclaimHub.
10.1 Store format
Each ReclaimHub store combines a retail floor, a pawn counter, a
testing and diagnostics station, and an intake valuation desk. The
layout is designed to move a customer from intake to offer to
transaction quickly, and to keep pledged collateral secure and
auditable. Store formats scale from full-line flagship outlets to
compact township micro-stores adjacent to transport nodes and malls.
10.2 Central hub model
Regional hubs handle refurbishment, pricing updates, inventory
redistribution and collateral storage overflow. Centralisation
concentrates specialist repair skills, enforces consistent valuation,
and allows inventory to be balanced across stores, a key lever for
inventory velocity and for franchise consistency.
10.3 Inventory and collateral flow
- Customer sells or pawns an item at the intake desk; the valuation
engine proposes a price or advance. - Item is assessed, tested, photographed and logged against the
customer’s verified identity. - Pawned items are securely stored; purchased or forfeited items
are routed to refurbishment. - Refurbished goods are placed on the retail floor, transferred
between stores, or liquidated if aged.
10.4 Store economics and the maturity assumption
Average revenue per store rises from about R12m in Year 1 to R16m by
Year 5. This is a stable, plausible per-store figure for the format —
but it embeds an optimistic assumption. In years of heavy expansion
(Years 3–5 add 65, 90 and 140 stores respectively), a large fraction of
the network is immature; new stores typically take 12–24 months to reach
mature revenue. A blended average that rises while the network is being
diluted with new stores implies new outlets reach maturity almost
immediately.
ramp
If new stores ramp over 18–24 months rather than instantly,
Year-3–Year-5 revenue would fall short of plan even with the full store
count delivered. The downside case in Section 21 applies a 15% revenue
haircut that substantially reflects this maturity drag. Underwriters
should request a cohort-based store-ramp schedule (revenue by store
vintage) during due diligence rather than relying on the blended
average.
10.5 Cohort ramp, an illustrative maturity curve
A realistic store matures over roughly two years. The illustrative
curve below, which we recommend as the underwriting basis — assumes a
new store reaches 45% of mature revenue in its first partial year, 80%
in year two, and full maturity thereafter. Applying this curve to the
opening schedule, rather than assuming instant maturity, is the single
largest driver of the gap between the sponsor and downside cases.
| Store cohort maturity | Year 1 | Year 2 | Year 3+ |
|---|---|---|---|
| % of mature revenue | 45% | 80% | 100% |
| Mature revenue per store (R m) | 16.3 | 16.3 | 16.3 |
| Effective revenue per store (R m) | 7.3 | 13.0 | 16.3 |
Because the network more than doubles in each of Years 3–5, a large
share of stores sits on the steep part of this curve at any point in the
plan. This is why the downside case — which embeds a revenue haircut
broadly consistent with cohort immaturity — is the prudent lender view
rather than a pessimistic outlier.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of ReclaimHub Retail Group (Pty) Ltd.