Whilst it is proving difficult to continue growing sales from their existing core businesses, I think there is evidence of some good examples of retailers broadening their horizons beyond their traditional markets and areas of expertise.

Expansion into new business areas is hardly a new phenomenon but as the market has toughened it has become more of an imperative for many companies. The search for new revenue streams has led more retailers into the area of ‘venturing’, which can take a variety of forms: from the setting up of a formal joint venture company with a third-party, through to the simple creation of a revenue-sharing arrangement where a retailer sells products in their store or on their website using another company’s recognised brand name.

As with many initiatives in the retail sector, it is the supermarkets that have led the way, setting up joint venture businesses that have taken them into new areas, such as financial services.

Tesco and Sainsbury’s were the front runners into this sector when they teamed up with big banking names to provide their own services just over a decade ago. The former linked with the Royal Bank of Scotland to set up Tesco Personal Finance, and the launch of a combined debit and loyalty card was swiftly followed by credit cards and insurance policies. RBS recently agreed to sell its 50 per cent stake in the venture to Tesco for £1 billion.

The key to success with such ventures is ensuring that each partner’s skills are complementary and that they have the same objectives for their businesses and for their brands. There are plenty of learning points, such as making sure that the culture of both organisations are aligned, and it crucial that control of the joint venture entity is shared, with a clear understanding of who is the dominant party.

As well as joint-ownership venture arrangements, some retailers have taken stakes in other businesses to extend their reach. A good example is Ocado, in which the John Lewis Partnership, Waitrose’s parent company, has a share. Again, the objectives of the parties involved are firmly aligned, which in this case centres on the fundamental aim of delivering food with a high level of customer service.

Joint venture deals are also being used to drive revenue growth through entry into emerging markets. Over the past year or so, we’ve seen UK retailers announce a series of joint ventures in India. Earlier this year, Hamleys announced a joint venture with Reliance Retail, one of India’s largest industrial conglomerates and this has followed the likes of Marks & Spencer, which currently has 14 stores in India with Planet Retail; Wal-Mart, set to open its first cash-and-carry with India-based Bharti by December 2008; and Giorgio Armani, which has entered into a joint venture with real estate developer DLF to open stores which will sell and distribute various Armani brands.

And it’s not just UK companies looking overseas for new opportunities – businesses here have plenty to offer in terms of market knowledge and expertise. Carphone Warehouse recently announced a joint venture worth £1.1 billion with American electrical giant Best Buy, which will see the two businesses open ‘electricals supermarkets’ in the UK and across Europe from next year.

As times become ever-tougher for high street retailers the need to look outside their core businesses for new opportunities will become stronger, so we may well see more innovation through venture type activities in the future.

Article by Helen Dickinson

The Wal-Mart-owned supermarket chain grew its home shopping grocery sales by 71.8 per cent for the 12 weeks to 15 June, compared with the same period last year, according to TNS Worldpanel figures seen exclusively by The Independent.

The revelation will ratchet up the pressure on Sainsbury’s in the burgeoning home shopping market, although both supermarkets’ online grocery sales are dwarfed by market leader Tesco.

It is understood that Sainsbury’s grew online sales by just 17.3 per cent over the same 12-week period to 15 June.

Asda first overtook Sainsbury’s in May and has remained marginally ahead of its rival since then. Food and drink account for the vast majority of the TNS Worldpanel home shopping sales, but these figures also include traditional non-food grocery items, such as cleaning products.

Asda declined to comment on any comparison with Sainsbury’s but confirmed its online grocery sales had grown by more than 70 per cent for the 12 weeks to 15 June. Asda’s chief executive, Andy Bond, admitted last year that it had been slow to exploit the full potential of grocery home shopping, but since then it has been rapidly expanding its coverage in the UK. For the seven days to 15 June, Asda grew home shopping sales by 56 per cent, while Sainsbury’s was thought to have increased sales by 8.3 per cent.

Sainsbury’s declined to comment on the figures but said that its total online grocery sales over the past year – as opposed to a 7-day or 12-week period – were ahead of Asda’s. TNS World-panel refused to comment.

Sainsbury’s has suffered intermittent technical problems since mid-June with its online grocery site, which have now been fixed, but the TNS figures relate to the period before they occurred.

The online shopping battle is set to intensify in the autumn, when Asda relaunches its website on a new platform. A key goal is to ramp up online sales of non-food products, but ultimately Asda wants to offer customers a fully integrated grocery and non-food shopping experience. Sainsbury’s is also gearing up for a major online non-food push, including clothing.

Asda, Sainsbury’s and Tesco operate a pick-from-store model for grocery home shopping, while online grocer Ocado, which delivers Waitrose’s products, uses a hub-and-spoke model from an automated central warehouse. Tesco has also piloted a dotcom grocery store in Croydon, and plans to open another this year.

In the wider grocery sector, Tesco had a 31.3 per cent share of the market, Asda was 16.9 per cent and Sainsbury’s had 15.9 per cent for the 12 weeks to 13 July 2008.

New Frü Strawberry and Raspberry Trifles follow on from the success of Gü Chocolate Trifles, launched in May 2008 and recently nominated a Must Stock Product by The Grocer.

The new Frü Trifles will add value to the growing fruity range and offer different consumer eating occasions, from picnics to sitting in front of the telly. They also aim to drive further interest in the trifle market which is estimated to be worth £97m (source: AC Nielson June 2008).

Revolutionising the traditional trifle market, Frü’s new trifles feature fruit at the top as opposed to the bottom, giving consumers an instant fruit fix. They’re made with juicy berries, Bourbon vanilla custard, fresh whipped cream and vanilla sponge. Like their chocolate counterparts, Frü Strawberry & Raspberry Trifles are presented in 100% recyclable pots and striking white packaging.

This month also sees the launch of new Frü Seasonal Summer Puds which feature a compote of six summer fruits, including raspberries, redcurrants, blackcurrants, blackberries, blueberries and strawberries, a light sponge and a fruity syrup.

With less than 100 calories in each pud, they offer consumers a lighter, refreshing eat and deliver an intense fruit fix. Frü Seasonal Summer Puds are presented in stylish ramekins, perfect for stylish entertaining or as a midweek treat.

These new puds form part of Frü’s aggressive NPD programme which will include more new pudding launches throughout the year.

Becs Sears, Marketing Manager of Frü Fruity Puds and Gü Chocolate Puds, comments: “The Frü brand is worth approximately £5m in the UK and it is predicted that these exciting new products will add an extra £4m to the brand. There is clearly a big opportunity in the market for premium fruity puddings that deliver quality and innovation and Frü is perfectly poised to fill it.”

Frü is investing £200k in marketing support for the new launches which includes sampling, a new Frü website, print advertising and PR.

Frü Strawberry & Raspberry Trifles retail at £2.39 for 2 x 115g trifles and are available from Asda, Sainsbury’s, Tesco, Booths, Waitrose and Ocado.

Frü Seasonal Summer Puds retail at £2.99 for 2 x 90g ramekins and are also available from Sainsbury’s, Tesco, Waitrose, Booths and Ocado.

A dentist has opened the UK’s first supermarket dental surgery.

Dr Lance Knight, who runs several dental surgeries in the city, is promising shoppers professional and cost effective treatments.

Dr Knight, whose clients include boxer Amir Khan and the model Caprice, said: “This is aimed at making dental care more accessible and to meet patients’ needs. The surgery is open seven days a week making it convenient for those needing to see a dentist during the evenings or weekends.

“We hope to make the service available to many more Sainsbury’s customers across the country.”

The private surgery will go head to head with the NHS, charging £16 for a check up, which is slightly less than NHS fees.

Dr Knight claimed that in some areas 50% of the local population were not registered with a dentist because of the shortfall in NHS dentists.

David Gilder of Sainsbury’s, said: “There is a shortage of dental practices in the UK and the launch of this new service goes some way to providing local people with greater access to dental advice and a range of procedures.

“We have a long history of providing health care services in our stores, from pharmacies and travel clinics to the launch of the first ever GP’s surgery in our store in Heaton Park, Manchester. These services have been enormously popular with customers.”

A pop-up dental surgery recently visited nearby Stockport promoting the cut price benefits of dental treatment in the former Eastern Bloc.