Desperation can lead to strange bedfellows.
Facing harsh industry headwinds, retailers from Staples to Ethan Allen are doing deals with online threats like Amazon, and venturing into new businesses, such as hospitality, co-working spaces and even government contracts to uncork new revenue streams.
The moves reflect efforts to beat back the forces that are hammering traditional retail chains: The growth of e-commerce and Amazon’ s ever-tightening grip on the nation’s shopping behavior; mall traffic declines; an overstored retail landscape; and consumers spending more on experiences like restaurant meals, movies and spa treatments than material things.
They mark a push by retailers beyond their core competencies into uncharted industry territory, which can be risky.
But you can’t blame them for trying. Retail is a dreary place these days as