Written by Bira CEO Andrew Goodacre
Running a shop has never been easy and recent years have only added to the challenge. Figures suggest that around 38 per cent of fashion shops in the UK have disappeared over the past five years, with rising costs squeezing margins and consumer spending under pressure.
Against this backdrop, relying solely on a traditional product range or long-standing business model is no longer enough. Diversification has shifted from a nice-to-have into a practical strategy for long-term survival.
That does not mean abandoning what you do well or losing your identity. Instead, it is about smart diversification – building on your strengths, opening up new revenue streams and appealing to a broader customer base.
Product diversification works best when it feels natural to your existing offer. The most successful examples I see are those where retailers introduce complementary categories that make sense for their customer while drawing on existing expertise and supplier relationships. Often, the opportunity lies in spotting gaps in the local market that align closely with what you already do well.
Last year, I visited Bira member Karen Forret, who owns family-run indie retail group Wilkies in Scotland. Until 15 years ago, it was a fashion specialist carrying around 90 per cent clothing. Today it now operates its six shops more like mini department stores, having started diversifying into footwear then slowly expanding into homeware, cookware and gifts.
“This evolution has not only increased sales from our existing customers, but has also attracted new customers into our stores,” she says. “We strongly believe that offering complementary categories gives customers more reasons to visit us and, importantly, more reasons to buy.”
These ranges take up limited space but appeal strongly to her core customer. One of her best-performing lines in recent years has been heated throws – not high fashion, but a practical purchase that resonates in the current climate.
Moving beyond a core product range is a brave decision and it inevitably comes with a degree of uncertainty. However, much of that risk can be reduced by talking to customers and understanding what is missing locally. The closure of another shop does not always mean a lack of demand – often it creates an opportunity for the right retailer to step in.
Diversification does not have to stop at product. Services such as pre-loved edits, repairs or alterations are gaining traction as shoppers become more environmentally conscious. Many independents already offer click and collect, but there may also be scope to explore local delivery or other service-led additions that enhance convenience.
As Forret told me, “I always have to find reasons for customers to come into my shop and make the most of every visit.” Introducing new product ranges, when done thoughtfully, can achieve exactly that.