The two business secrets that will help Mango grow in the UK

Why don’t good news stories get the attention they deserve? Business commentators weren’t overly-excited when Spanish fashion giant Mango revealed it’s opening 13 new stores across Britain this year to add to the 53 it already has. It may open the same number every year until at least 2026, in what is a significant drive for growth in the UK. As the company’s CEO Toni Ruiz said the UK is ‘one of the most important countries for Spain to export products.’

So whilst the commentators aren’t excited, I am.

Because it’s not just a great story about investment in this country. It also highlights two of my secrets to business growth, topics I’m continually speaking to politicians, investors and entrepreneurs about through my business venture, Growth Partner.

First, to grow globally you need to put in place local strategies. One size will not fit all if you want to reach across borders. Companies need on-the-ground expertise to help navigate not just how business is done in different geographies but how people shop. Their different tastes, cultures, habits and needs. Though Mango is run from Barcelona, international expansion has been built on an intimate understanding of local markets.

The second rule is to have an omnichannel approach. Online is essential and a digital strategy must run in tandem with more traditional approaches. I call it bricks and clicks and paper - consumers want the ease of engaging with a brand at home or on their phones but they also need a physical experience. To be instore and online, the two feeding each other and both supplemented by the power of direct marketing, such as the free brochures that come in the post.

The best companies have a laser-like focus on how omnichannel offerings complement and build on each other. It’s what Mango’s founder Isak Andic has done since 1984 when he started the company, having spent years importing clothes and fabrics into Spain from his Turkish homeland. His empire now boasts 2,600 stores in 110 markets across the world, employing around 14,000 people.. Last year’s record turnover was €2.68 billion, whilst pre-tax profit grew by 26.2 per cent to €103.3 million year-on-year, with more than three quarters of sales in markets outside of Spain.

Just as important as the bottom line is Mango’s outspoken commitment to investing in the physical retail network. Here in Britain, I’ve always been impressed by media organisations such as Retail Week who tirelessly champion the retail sector. They know how important it is to have that tangible connection to consumers. According to recent data it published, more than 45,000 stores opened last year (the highest number for six years) and just under 49,000 closed, which is the smallest gap since 2016. You have to go back to 2013 to find more openings than closures.

Physical retail is perhaps more essential in fashion than any other sector. People need to feel fabrics, see if something suits and fits them, to be amongst each other in a vibrant shopping environment. Data earlier this year revealed that more than a third of online purchases are returned, a figure that shows how important that physical connection is. The stores themselves are gateways to how brands are perceived - the best window displays do more than show off the latest designs, they’re living advertisements. The importance of bricks and mortar is reflected in recent figures from the Office of National Statistics which show that every month this year, online has accounted for only a quarter of all retail sales.

Last Sunday I spent a morning wandering around Gateshead’s Metrocentre in the heart of Newcastle, not so much window-shopping as viewing things through a business lens. How people were interacting, what they were buying, which displays caught the eye and how companies create that buzzy togetherness.

In particular, two new stores caught my eye. Leeds-based premium footwear retailer Moda in Pelle which is enjoying a sustained period of growth; and Rowenhomes, an upmarket furniture and accessories company whose owners I have been mentoring. Good news stories like these are not hard to find and we need to make more of them.

So many of the leaders I mentor and businesses I invest in are on a roll, not just because they have a great offering but because they have the right strategies in place. I’ve no doubt Mango will be a huge success and I fully expect the company to adopt two of the strategies I believe are essential for growth – go global with locals, and be omnichannel.

Pardon the pun, but as Mango’s CEO knows, these are fruitful times to invest in Britain.