IN the US, a retail industry subdued by the credit crunch has resulted in many an empty shop window as stores quietly wait for the inevitable shutdown.

In New York, reports fashion magazine Drapers, small independent stores that gave 7th Avenue and Greenwich such character are slowly being squeezed out by department stores with bigger advertising budgets. As a reaction to that, Drapers says, a new phenomenon in the form of small businesses offering multi-concept spaces is coming out of the woodwork.

Here in Singapore, the situation is no different, sources say, especially when it comes to attracting the attention of weary consumers.

'The truth is, consumers get bored so easily these days,' says Jerry De Souza, brand director of the Spa Esprit Group that is due to open a multi-concept beauty space called Beauty Emporium @ House in August. 'We have to keep them interested with original ideas and more options.'

Singapore Management University's professor of management practice Raj Komaran explains that the growth in popularity of multi-concept spaces could be due to a few main factors: high rental costs inspiring tenants to either share or sub-let their space; retailers utilising space within the shop to test drive new products or services; or perhaps retailers looking for a way to make more money (if, say, 'the steady-state volume of business at a hair-dressing salon is low, it might as well free up one seat at the corner to sell leather jackets').

There is, of course, the worry that too many cooks may spoil the broth, and that having competing concepts within one space might dilute their individuality, but industry players insist that as long as the concepts complement each other, the idea is a good one.

Agrees Dr Komaran: 'A bookstore can have a cafe or photo studio at a corner, but a karaoke operation would be a misfit.' But he warns: 'The concept is unlikely to be mainstream because it is difficult for the public to identify and remember these stores especially if the assorted products are not known brands or unique things.

'It's not going to be easy to advertise or promote such stores in the mass media. The number of loyal or regular clientele would be quite small, limited to curious walk-ins or perhaps to 'friends' only. The chance encounters with such novelty or cute shops may trigger several SMSes and blogs. But how widespread or effective would this word-of-mouth be?'

Still, that hasn't stopped three enterprising retailers from road-testing the multi-concept retail space. BT Weekend highlights three of them.

Hairloom & Caramel
#01-50/52 Shaw Towers
100 Beach Road
Tel 6295-2088 - hair salon
Tel 295-2188 - cafe

AT Hairloom & Caramel, you can literally have your cake and eat it, plus shop and get your hair done as well.

Set up five months ago by five friends - ex-stylist CK Koo, illustrator Kuanth, hairstylists Calvin Gan and Fern Wong and Sin Teoh (who use to do freelance advertising work) - the 2,000 sq ft space boasts a hair salon with an eclectic-looking adjoining cafe.

'The idea actually works very well for us because on top of our walk-in dining customers, the cafe is also a great alternative for a waiting area,' says Mr Teoh. 'Say for example, somebody comes in for a hair treatment which may take some time, why not have some cake and coffee while waiting? Boyfriends accompanying their girlfriends to get their hair done can likewise sit at the cafe and get a bite instead of just sitting around with nothing to do.'

He adds: 'As we have two entrances, we've had people who walk in through the cafe entrance to eat, are surprised to see a hair salon and go on to book an appointment. And vice versa for those who come for a haircut and later come back for a meal.'

Two months ago, Hairloom & Caramel added a retail space called Objet d'Art within the cafe to the existing mix, in a bid to keep things fresh.

'The cafe and hair salon more or less remain unchanged with time, which is why we believe that the retail element is important since constantly having new products for sale gives people an additional reason to visit us. It also makes for a quick shopping trip, and we all know that Singaporeans like to shop,' says Mr Teoh with a laugh.

In keeping with the eclectic theme, Objet d'Art boasts quirky items either made or picked up by the partners from all over the world. As a result, once each product is sold, there are no re-orders, making each piece as good as a one-off buy.

Current available buys include a range of stuffed toys from Laos ($24.90 to $32.90), tote bags made in-house ($34.90 to $49.90) and a range of knick-knacks produced by illustrator-partner Kuanth.

While Objet d'Art currently only takes up a small corner of space within Hairloom & Caramel, Mr Teoh reveals that it will eventually be expanded to sell apparel. Like its knick-knacks, the clothes will be sourced from around the world too.

Mr Teoh adds that while the cafe's Alice in Wonderland look has already become a popular choice with teenagers and patrons in their early 20s for birthday parties, he hopes that in time more people will see the benefit of hiring the entire space as a party venue.

'The space is perfect for hen nights,' he points out. 'A group of girls can come in, get their hair done and have some food at the same time. Plus, we have tie-ups with a nail parlour and a foot massage place upstairs which have staff who can come down when necessary, making it the complete grooming and pampering package, which I think is a very attractive idea.'

This article was first published in The Business Times