1、With limited growth in traditional buying and selling,retailers need new revenue and profit streams.By Melanie Sanders,Aaron Cheris,Shyam Unnikrishnan,and Connie KwokHow Engine 2 Expansion Can Power the Future of RetailCopyright 2023 Bain&Company,Inc.All rights reserved.1How Engine 2 Expansion Can P

2、ower the Future of RetailAt a Glance Growth is becoming more elusive in core retailing activities,to the extent that,by 2030,half of industry profits could come from nontraditional sources such as marketplaces,advertising,and financial services.Retailers can seize the opportunities that lie“beyond t

3、rade”by launching Engine 2 businesses that unlock the potential of strategic assets they already own(or capabilities they already have).As Engine 2 development accelerates,three imperatives are vital for successful expansion outside the core:Choose strategic battles carefully,craft a compelling inve

4、stment story,and anticipate operating model tensions.Retailers old and new have been increasingly branching out through the creation of“Engine 2”businesses.Omnichannel players with a long history of physical retailing are moving into areas such as advertising,data services,third-party fulfillment,an

5、d financial or health services.These Engine 2 ventures can create a step change in revenue growth and compensate for the diminishing opportunity available through their traditional growth levers(such as expansion of store footprint).For digital-native retailers focused mainly or exclusively on e-com

6、merce,Engine 2 expansion can be a tonic for profitability.Many such players dont yet have the earnings to match their impressive scale;attractive Engine 2 profit opportunities can offset their weak e-commerce margins.As a potent solution for both revenue and profit growth,Engine 2 business creation