The term “shop-in-shop,” also referred to as “store-in-store” or “store-within-a-store,” generally refers to a space allocated specifically to one brand or brand name within another brand's outlet. The shop-in-shop retail concept means that the allocated area is managed and staffed by salespeople from the host brand.
The brand or chain benefiting from the space owes rent and/or commission to the chain hosting it in its outlet.
The shop-in-shop concept is often seen in department stores in collaboration with perfume and fashion accessory brands as well as other business sectors and other types of outlets. In a similar manner, service corners (hairdressing, make-up, restaurants, etc.) can now be found inside big-box stores.
In addition, “shop-in-shops” can also be used to describe unpartitioned sales areas available in shopping centers. These spaces can be set up on a permanent or temporary basis, with a specific date of activity such as around the holidays, or in the form of ephemeral boutiques, known as pop-up stores.
With this arrangement, both brands benefit. On the one hand, the host company can enrich its offer and attract a different clientele without investing in new products or services. On the other hand, the hosted brand or retailer benefits from increased visibility and customer flow, without having to invest in an independent outlet.
The main attraction of this model lies in the synergy between the two entities and the customer experience. Customers of the host store can be exposed to products or services they wouldn’t necessarily have sought out on their own. Conversely, customers attracted by the hosted store may be tempted to discover the host's offer, which can help boost sales.
The shop-in-shop model can be an effective strategy for brands looking to expand, get customer feedback on a new product, or test a new market. The initial investment is lower than that required to open a stand-alone shop, and the risk is lower.
The success of a shop-in-shop arrangement depends very much on the compatibility between the host store and the hosted store. A good connection in terms of brand image, target clientele, and product or service offering is often a determining factor.
