While retailers' core offerings remain their primary revenue generator, a majority of retailers (61%) rely on up to 25% of their business's revenue to come from revenue streams outside of their core offering. Here’s a breakdown of how retailers are benefiting from diversified revenue streams:
For businesses with longer tenures, the results shift even more. Retailers who have been in business for five years or more rely more on revenue streams outside of their core offering.
About one third of retailers who have been in business for 5 years or more (37%) say they rely on 26-50% of their revenue to come from revenue streams outside of their core offering. On the other hand, for retailers who have been in business for less time, only 22% rely on 26-50% of their revenue to come from revenue streams outside of their core offering.
Percentage of revenue coming from outside of their core offering:
0-25%: 61% of retailers
26-50%: 32% of retailers
51-75%: 6% of retailers
76-100%: 1% of retailers
"Last year I started doing permanent jewelry in my brick and mortar. The style of permanent jewelry fits really well with the style of jewelry I've been making for the last 16 years. A lot of times when the brick and mortar wasn't busy with street traffic, I would work on wholesale orders. But then once I started doing the permanent jewelry, it has not slowed down since January. I've let go of my wholesale business because permanent jewelry has made the retail part so busy for us.”
When asked what additional revenue streams retailers currently offer or are interested in offering, 61% expressed interest in adding in-store dining options like a coffee bar, wine bar, or cafe over the next 12 months. Embracing food and beverage options can help make retail stores more attractive for customers who want to shop and/or dine with their favorite brand. In other words, it makes it easier for retailers to inspire their favorite “L” word — loyalty.
New offerings also make it easier for businesses to diversify their customer base. In fact, it’s a primary factor for retailers. Thirty six percent of retailers are planning on expanding and diversifying their customer base and deepening their connections with existing customers over the next 12 months. Curious to know what else is driving growth and expansion in the retail space? Here’s what the results show :
What is the primary factor driving your interest in offering additional revenue streams?
31% of retailers cite the desire to keep up with industry trends.
25% of retailers want to diversify revenue streams.
22% of retailers are interested in diversifying their customer base.
21% of retailers say it’s a passion project.
Aside from reaching customers, retailers are also using new revenue streams to stay competitive. Thirty eight percent of retailers say they need to improve upon offering more in-store events and shopping experiences to stay competitive in today’s marketplace. Ready to understand the opportunity for your business? Take this quiz to understand what new revenue stream can benefit your business the most.
