We live in a society that is increasingly characterised by services. This is not least evident in that households are using an increasing share of their disposable income on services such as restaurant visits, travel, experiences/adventures and pleasurable pursuits. Furthermore, in working life all employment growth after the financial crisis in 2008 has taken place in the service sector.

In retail trade, the process of integrating products with services has been under way for quite some time. However, many retailers still have much to gain by ensuring the benefits of the services in the form of better service, increased sales and a higher degree of loyalty.

There are many clear examples of how retailers are expanding their offers to include both products and services. This pertains to everything from the simplest of services such as home delivery of a new couch to courses for handling a new system camera or assistance from an interior designer when remodelling a home. The building supplies trade is a clear example of how helping customers and offering bundled solutions with services and products can stimulate sales by a double-digit percentage. The industry is at the forefront with its range of services, whereby the consumer receives a great deal of assistance in an area that requires specialist expertise. The service range stretches from digital tools such as instructional videos and planning tools that help customers calculate, draw and design their own building projects from start to finish, to acting as an intermediary for craftsmen who offer a set price where the builders’ merchant also serves as the guarantor. Minor players in the building supplies trade have also consciously moved away from regarding themselves as being sellers of products to instead being sellers of solutions to problems. Malmö Järnhandel, an enterprising store located in the inner city, provides everything a traditional hardware store is expected to offer. The company is also aware of what customers in the area need, and thus also lends out tools and offers assistance with odd jobs such as putting up flat screen TVs. Thus servicification not only affects the major retail actors, it also greatly affects smaller stores.

Services generally arise either as a reaction to a demand from a player outside the company in question, such as taking care of cans and bottles that are returned to grocery stores, or as a conscious strategy to stand out, personalise an offer or extend customer contact to comprise the entire life cycle of a product. A conscious service strategy can enable a broader grip on household wallets. By adding services to a greater extent, it is possible to increase, or maintain, both sales and margins. The challenge involves creating an organisation and an approach where the services become a natural part of a business model that has traditionally been associated with a physical product.