Improvement of sales and reaching new market segments are the main reasons for retail co-branding.

Research conducted by Johan Schwartz indicates that South African retail brand managers have different reasons for pursuing co-branding strategies. The research firstly found that that the improvement of sales is the main reason for retail branding practitioners to pursue co-branding strategies. Secondly the research found that the improvement of brand image are deemed to be a lesser important reason for pursuing co-branding strategies. The research also found that reaching out to new segments of the market is another appropriate reason for brand practitioners to pursue co-branding. Extending the brand through a shared new product or service offering is deemed to be another appropriate reason to co-brand. The latter reason (extending the brand) were deemed to be a lesser important co-branding reason. Lastly the research indicates that renewing the brand though positive associations as well as launching a new and redevelop are deemed to be lesser important co-branding reasons.