Retail Paradigm: Pursuing Alternative Revenue Streams

It’s become the hottest trend in retailing — scrambling for alternative revenue and profit streams. Selling off real estate or divisions aside, retailers are increasingly seeking payback via unorthodox collaborations, sponsorships and by developing ancillary businesses. It’s a matter of pursuing out-of-the-box solutions to offset weakness at core operations, better the bottom line and respond to pressures to innovate. Macy’s, for example, uses its Story format to tap brands, even competitors such as Dick’s Sporting Goods, for sponsorships. Kohl’s is testing health and wellness offerings from Weight Watchers and collecting fees from Amazon for utilizing stores as pickup and return points for Amazon packages. Kohl’s has even sold a small stake to the Seattle-based e-tail giant. Nordstrom keeps advancing its food and beverage offerings and opening Nordstrom Local service hubs, which encourage consumers to shop the full-line stores and online. And Dollar General recently linked with Western Union to provide money wire transfers. Costco has an array of services — from home insurance and identity protection to delivering bottled water — and at the Casper mattress store on Mercer Street in Manhattan, one can book a 45-minute nap for $25. Best Buy recently introduced an “assured living” service to help seniors at home by installing

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