In today’s highly competitive retail environment, it’s more important than ever for retailers to find new ways to generate revenue and avoid falling into a downward spiral of declining sales and profitability. Retail store owners are challenged with staying ahead of the curve when generating additional income streams, especially in light of Amazon’s growing dominance in online retail. However, most independent retailers struggle to do so because they have limited resources, lack capital, and may not have the time or expertise necessary to explore other business opportunities such as partnerships or non-traditional locations. Lucky for you, independent retailers can use plenty of proven strategies to generate income streams outside their primary store.
If you’re planning to open a store or are currently operating one, you should consider holding events to increase foot traffic and income. There are many types of events that you can do, but the most common one is a product release event. This is when you release a new product or collection to the public. You could also host a sample sale where you sell products at a discounted price. You could hold a fashion show to show off new clothing trends or have a live Q&A session with a fashion expert or influencer. You could also host a makeup event where shoppers can get their makeup done. The options are endless, so it is crucial to determine what the customers in your area want to participate in.
Partner with local businesses for pop-up shops
Retailers in major metro areas are increasingly partnering with local shops to host pop-up shops designed to promote their brands and generate additional revenue. Pop-up shops are storefronts that retailers use to showcase their products in a real-world setting. Pop-up shops are a great way to expand your brand, generate foot traffic, and generate additional income. One of the best ways to partner with other local businesses is through online forums. If you don’t have a forum account, we highly recommend creating one. Forums like Reddit, Shopify, and Facebook are great places to meet people in your industry and your local area. Once you’ve connected with an interested business partner, you can use your retail space to host the pop-up shop.
Contests are a great way to engage your customers, expand your social media presence, and generate additional sales. You can use several types of contests to increase foot traffic, including;
Photo contests are a great way to engage customers and inspire brand loyalty.
Social media contests are a great way to increase social media presence.
Raffles are a great way to increase foot traffic and boost sales.
Another promotion strategy is trade shows, which are popular events where retailers can network with other businesses and promote their brands. Your local chamber of commerce can provide information on upcoming trade shows in your area.
Generate income with digital displays
Retailers quickly realize that digital displays are an effective way for them to highlight their products, engage with customers, and generate revenue through advertising. As technology advances, retailers will likely continue adopting digital displays and augmented reality technology to engage customers and incorporate product marketing. However, retailers may be unaware that they can make additional revenue by selling digital advertising on their displays. This is where digital advertising comes into play. You can generate income by hosting digital advertising on your digital displays in between showing music videos, sports games, movie trailers, and more.
Diversify your products
One way to generate additional income streams is to diversify your products to include related items. This can be helpful if your business sells products with a high turnover rate. Diversifying your products can generate additional revenue for your business and reduce the risk of your inventory turning over quickly. Diversifying your products can be easy and doesn’t require a significant investment. For instance, if you operate a toy store and the toys in your store are turning over quickly, consider diversifying your product offerings to include items like books, puzzles, and games.