Diversification is key.

I was reading an article in the Daily Mail this morning that hit on a trend I’ve seen emerging throughout the US and UK retail market. It said:

Top entrepreneurs say their businesses are weathering the storm of recession helped by diversification, though they admit that their growth will be harder to achieve in the next three years.

Three quarters of the respondents listed in the annual Real business/LDC Hot 100 league of fast growing businesses say they have kept or increased their sales projections despite the economic climate. And while unemployment is hitting 9% in most countries, the hot 100 say that they have not made any redundancies in the past 12 months and three quarters say they would still have started a business today – even in the midst of recession…..

This years list includes the upmarket handbag and luggage group Radley and co, retail pharmacy Pathvalley, helicopter charter business Von Essen Aviation and ES group whose lorries ferry stage equipment for performers such as Madonna to concerts.

Interestingly some of the big retail players are following this model, helping themselves weather the recession. Zara clothing for example have branched into homewear, Pottery Barn into a kids range, Jaeger have launched Jaeger black, Jaeger London and Jaeger men, Victoria Secrets have launched PINK, KaDaWe in Berlin have crèche facilities, a spa and restaurant plus banking in their department stores, as have Tesco in the UK who are predicted to be one of the biggest high street banking chains in Britain in 3 years. ALDI supermarkets sell holidays, ASDA advertises houses for sale, Sainsbury’s are trialling GP’s in 16 of their stores. TopShop offer a nail service in store, personal shopping, hair and make up plus pic ‘n’ mix sweets.

What’s interesting however is that the recession is seeing some of these diversifications of brands reuniting in one store to cut down on rental spaces. Not necessarily a bad thing in my opinion. If the premise is to keep customers in store and engaged for longer, what better way to do it than by offering a better variety of services. If I can shop, get personal style advice, coiffure my hair, have a manicure and eat Bassets liquorice allsorts I could happily stay all day!