Competition for the consumer dollar remains fierce for today's retailer. Not only are retailers competing against each other, but against their own shopping channels. Brick-and-mortar locations have to consider new ways to bring customers in-store. As we have written about previously, one of those ways is store-within-a-store. Real Views also recently took a look at the emerging trend:
Retailers like to have their own space that reflects their style and brand values – but who says this space has to be a standalone store?
More retail brands are now opting to rent small areas from established players as the next step in their growth strategies. And unlike the boutique approach of department stores, these mini shops are controlled by the brand, staffed with brand employees and replicate the look and feel of the brand itself.
Earlier this year Apple Watch opened its own store within Selfridges department store in London. In July, UK retailers Peacocks and Sports Direct opened 10,000 square foot shops within Tesco stores in Hungary to build their presence in the market. And over in the U.S., CVS Health snapped up Target’s pharmacy chain: it will now operate as a CVS store-in-store format.
Also known as shop-in-shop, kiosk or concession retail, the store-in-store concept has become an enduring favorite among retailers.
Anuj Puri, JLL’s Global Head of Retail Leasing says, “The store-within-a-store concept is an easy way for retailers to break the monotony of shopping and create a unique experience for the customers. It lets retailers differentiate themselves from the competition while being convenient to both customers and retailers.“
The good and bad of store-within-a-store
Stores-within-stores give retailers an opportunity to cross market their brand and reach new demographics. It is also a cost effective alternative for both the kiosk and host retailers: The host retailer earns a steady income from renting out the extra space while the kiosk retailer saves money negotiating a smaller footprint. U.S. consumer electronics giant Best Buy, for instance, has successfully strengthened its position in the highly competitive market of electronics retail with this concept after snagging deals with technology giants like Sony, Microsoft and Samsung. Its recent deal with Samsung is one of the biggest store-within-a-store initiatives.
Read the entire article here.