In an increasingly competitive market, a fast-growing number of retailers are exploring options to generate secondary revenue in order to generate more profits. New research from Webloyalty reports that as many as 70% of retailers are already generating secondary revenue away from their core offering.

It’s a smart move, with many retailers posting vastly improved profit numbers as a result of these new avenues, which mean they don’t have to rely so strongly on just one aspect of the business. Particularly useful for those retailers whose businesses are hinged on seasonal success to help drive revenue all year round. 

What kinds of secondary revenue?

There are many different things that retailers can explore based on their business and current offering. Some ideas include: 

Diversifying ranges

Many retailers are exploring other markets that can help them attract a larger customer base. DIY retailers might look into garden and outdoors, for example. Many garden centres have successfully transitioned into homewares too! 

As a Stax customer, for example, you have access to an incredibly broad range of products, it’s worth thinking if your customers might appreciate any of them. 

Advertising 

Are there any opportunities for you to sell advertising space? Whether in-store, through owned publications or social media. There are almost always opportunities to attract brands who will be willing to pay for exposure to your audience. 

Credit & loyalty programmes

There’s additional revenue to be made by offering credit, as well as loyalty membership programmes. Many think that only larger, more established retail businesses can use this tactic, but there are opportunities for retail businesses of all sizes. 

Online

If you don’t already, it might be time to explore the online marketplace and grab your share of the billions spent. Ecommerce is a massive and ever-growing industry. There are many options for getting set up, including our own EKM Powerstore that can get you online in no time for very
0little cost. 

“In today’s competitive marketplace, retailers of all sizes are experiencing significant industry landscape changes, it’s important for all retailers to be smart about maintaining and importantly, increasing their profitability,” Webloyalty’s Northern Europe Director Richard Piper said.

“With secondary revenue streams proven to have a positive effect on profit margins, retailers should introduce a dedicated secondary revenue strategy that can fit within and support the overall marketing strategy to ensure business success and resilience.”