1 minute read
62 Retail shapeshifters
Retail shapeshifters
Long-term challenges are forcing retailers to rethink their core offers, with some diversifying into novel areas.
Advertisement
Few sectors have had a more turbulent couple of years than retail. The story of 2020 was one of deserted high streets, shuttered shops and plummeting sales. Fast-forward to today, and retailers are burdened by disrupted supply chains and labor shortages. These crises are hastening a realignment.
In times of uncertainty, adaptability is key. Enterprising retailers are shifting gears, finding creative ways to diversify that go beyond the borders of their business.
In July 2021, John Lewis Partnership—British parent company of retail brands John Lewis & Partners and Waitrose & Partners—revealed plans to become a private landlord. With the company posting the first full-year loss since it was founded in 1864, for the period to January 2021, diversification is a crucial plank in its turnaround strategy. A survey of its land portfolio identified excess space
that could be used for at least 7,000 homes. The properties, ranging from studio flats to four-bedroom houses, will be built on the partnership’s sites, meaning householders could soon be living above a Waitrose supermarket or next to a distribution center. By 2030, John Lewis Partnership aims to have 40% of its profits coming from non-retail lines, principally financial services, housing and outdoor living.
As part of its move to be climate-positive, Swedish furniture retailer Ikea is also branching out, by selling renewable energy to households. In a swing away from flat-pack furniture, the retailer is aiming to build the world’s biggest renewable energy movement, making electricity from sustainable sources universally accessible and affordable.
Why it’s interesting In the new retail era, consumers no longer see brands as serving one core purpose. People want deeper experiences with the brands they trust, so there are opportunities to capture new revenue streams. Diversification could be key to the bricks-and-mortar retail recovery.
