In a retail environment that’s beginning to rebuild following the tumults of the last 18 months, profitability and margins have never been more important for retailers and their supplier brands.
One way for them both to build back their profits is through media. For retailers, by leaning on their foundations and opening their store estates to supplier brands, be it online or in-store, retailers have an opportunity to work more collaboratively with their brand partners and build back strength together.
Every retailer can be a media owner. Whether you sell toys, toiletries, trainers or takeaways, you own a platform that speaks directly to shoppers, precisely when they’re in the mindset to buy. It’s a compelling proposition for a supplier brand to reach the most relevant target market to sell more of its products.
But how can a retailer identify what the potential value is, regardless of whether they’re starting from scratch or whether they’ve already been working with supplier brands in this capacity for years.
The easiest way is by having a quick cuppa with Threefold. And we can explain the findings of a report that dives headfirst into the UK’s leading retailers, identifying exactly how much £ you should be generating through a media estate and why.
Alternatively, there are seven key factors you can consider yourself that impact a retailer’s opportunity to generate higher sums of supplier funded revenue:
1. The retail sector you’re in and its current growth
2. The quality of your media estate
3. Team resource available for delivery
4. Brand affinity for the retailer in question
5. Delivering ROI measurement on campaigns for media investors
6. Commercial alignment internally of supplier income
7. Media accessibility to third parties and external agencies
Some of these factors can be directly addressed by a retailer; but some are a bit trickier to influence, due to the wider influences of the economy.
Retailers have a real opportunity to improve both their own profitability and also the profitability of their supplier brands, if they’re willing to affect change internally to best accommodate becoming a competitive media platform. Not only can the incremental revenue generated from this be transformational to the bottom-line for retailers experiencing market pressures on performance; if done well, it can also help turn around top-line sales revenue.
If the last 18 months have taught us anything, it’s that we need to constantly think differently to achieve true potential. While there’s no doubt it’s been challenging, now is the time to build back better together.
For more information, we’d love to chat over a virtual coffee: hello@threefold-agency.com