The trend: A growing number of retailers are rolling out or expanding store-within-a-store concepts.
The concept’s expansion comes at a time when brick-and-mortar remains as important a channel as ever. For example, 63% of consumers plan to do their holiday shopping in person this year, up from 58% last year, per JLL’s Retail Holiday Survey 2022.
Is there a mutual benefit? The store-within-a-store concept works well when the two retailers have complementary offerings and customer bases that align.
The risk: While a store-within-a-store can drive more foot traffic, that incremental gain is only valuable if it leads shoppers to explore the rest of the host retailer’s store.
The big takeaway: For host retailers, the store-within-a-store helps maximize the value of their real estate. And, when two merchants’ have similar brand positioning and customer profiles, the concept is a no-brainer.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.