Stores Inside Stores Lead to Sales
All across the country, retailers are taking advantage of
store-within-a-store concepts to attract shoppers and drive revenue for all
the merchants involved, according to The Sacramento Bee.
chains have added coffee shops, including Dunkin’ Donuts, Starbucks and Peet’s
Coffee & Tea.
J.C. Penney has Sephora makeup
stores inside some of its locations and plans to launch Mango clothing shops,
Macy’s had FAO Schwarz stores before the company was bought
by Toys “R” Us. Soon, Sunglass Hut will set up for business inside the department
“Sometimes it’s stronger to offer more than one brand, making
it better for the customer. Sunglasses, electronics, music, whatever it is,
it can create a better, more powerful mix. That’s where we’re heading,” Marshal
Cohen, chief retail industry analyst with NPD Group, told the Bee.
Penney attempted to go more upscale with its own makeup sections in the past
but failed to attract shoppers to the concept. The addition of Sephora has
accomplished for the chain what it could not do on its own.
“It gave them cachet
they didn’t have,” George Whalin, president
and CEO of Retail Management Consultants, told the Bee.
“What Sephora brings is the ability to merchandize and sell cosmetics that
Penney’s hasn’t been able to do well,” Mr. Whalin added.
Questions: Are stores-within-the-store more critical to retail success today
than in the past? Do you expect to see the number of these types of deals increase
in the future?