^{CHAPTER TWO:}
Retailers Believe It’s Time to Test; Eyeing Subscriptions, New Offerings, and Events

Our Most Compelling Data:

70%

of retail leaders see supplemental offerings beyond physical items – such as adding services or classes – as important to their business growth.

65%

of respondents said subscriptions could drive a positive return on investment (ROI) for their business.

Retail leaders think new paths to revenue are important, but many aren’t acting on that belief

We can say that it’s a new day in retail without it being hyperbole or cliché. But will retailers do anything about it?

Yes. The financial pressures of 2024 forced retailers of all sizes to react with short-term offerings, sales, gimmicks and other ideas to keep their businesses strong. That said, some problems or short-term financial strains will always exist. The key for retailer leaders now is to look beyond the short-term forecast to build for the future. And a majority of them (70%) told us that finding supplemental revenue streams will be the key to powering that longer-term growth.

Retailers should consider this their official permission slip to start following their own advice. That’s because – despite knowing they need new lines of business – less than one-third of those same retailers said they experimented by holding events (30%), adding memberships or a club offering (28%), or adding new products and services (21%) in the last year.

There’s also a bonus to keep in mind: A new revenue stream can mean more than just a little extra money on the top line of your balance sheet. Adding additional offerings – especially subscriptions or exclusive events – can expand your customer base over time and better retain them, locking in recurring revenue through your new initiative while setting yourself apart from the big box and local competition.

Key takeaway:

The survey responses are right: There’s more than one way to win the retail game. Start by asking your customers what offerings they’d like you to add. And don’t forget to look at what your competitors are doing. Even retail giants do this. Then set aside some budget for low-risk tests in 2025 and see if an idea catches on with your customers.

Pro tip:

Get started with this free competitor analysis guide to identify how your business’ strengths and weaknesses stack up to your peers. Thinking about why people do and don’t shop with you can help you understand where your business needs to go next. And, if you’re ready to take the subscription plunge, check out Square tools, which make it easy to manage all of your revenue streams (in-store and online retail sales, subscriptions and events) in one place.

When you think of the word ‘community’, your neighbourhood liquor store might not be the first place that comes to mind. Hi-Lo Liquor Market is here to challenge your thinking. It’s a specialty alcohol retailer with locations throughout Southern California that has built its brand by featuring local makers and hosting community events. Think of them as the community-friendly party before the party.

Retailers are also testing out subscriptions to create recurring revenue. One way to do this is to offer subscriptions to top-selling items or bundles, e.g., shampoo and conditioner. Bundling can help you pair an item that’s in high demand with one that you have more trouble selling. This can also be an opportunity to curate items your customers may not otherwise have considered.

Curating markets has been a huge success, so going outside of what we carry on our shelf, we also bring in local makers – including food pop-ups, other retailers, and also the makers. That’s another key growth driver for us. And it brings in fresh energy and really great products. That’s where we’re going to continue thriving when we combine forces with other really great producers and makers.”

Alisha Buehn, Social Media & Events Manager at Hi-Lo Liquor Market, Long Beach, California, USA