Store within a store concept has been popularised for decades now, particularly in the US. The popularity continues in Europe and Asia particularly. These spaces allow customers to buy a range of niche products and brands while also maximising underused space in department stores.
While some department stores or rushing to diversify their in-store portfolio, it's key to be not only be thinking about how a new store will compliment retailers but considering how it will look from a point of purchase point of view.
The team at KSF have done their fair share of store within store concepts and we have seen the progression of what customers want while also balancing the needs of brands at a cost level. So what is going to be the big conversations over the next year that big retailers and department stores will need to have?
Personalisation is already one of those big discussions. It’s no longer about ‘if’ retailers should personalise their stores, but how. Consumers have made it blatantly clear that they expect to see the localisation of their shops and the store in-store will be no exception. The personalisation may need to come in a ‘scaled-down’ form where POP can easily be implemented and replaced. Perhaps you introduce personalisation for a new product launch where the cost may be lower and it gives the brand a chance to experiment with what works? In these cases, vinyl is your best friend.
A big question and even an obvious one that department stores should be asking; Will it compliment our other retailers? From the consumer perspective, there is nothing worse than finding shop after shop of similar products. Yes, of course having a good selection of make-up, clothing and beauty products is important, but make sure that the look and feel don't become ‘samey’. You want to ensure that each brand is given their time to shine, that includes ensuring that each store within store is clearly defined. Store segmentation can easily be achieved through clever placement of point of purchase displays and it will also help the customer.
Budget is always going to be a huge factor for any retailer. The stakes become higher when this is a new retailer at a tipping point of scaling their business. We highly recommend researching all the material options from cheapest to the highest quality. There are always new innovations in manufacturing, that while not may be the cheapest option, they could be a good long term investment to get on the bandwagon early. Sustainable materials and innovative design have captured the attention of consumers over the last few years. It's worth deciding if you want to make a statement by reviewing your budget and predicting the longevity of your point of purchase.
Technology integration has been a big deal for a number of years but now consumers are jumping on the action and it makes all the difference. There is an amazing opportunity for store-in-stores to take advantage of augmented tech, click and collect and mobile shopping. With the limited space that store-in-stores have to work with, the shopping experienced can be enhanced with technology options. Customers now expect to see some form of technology in these stores that connect with their mobile devices, as app development has become more cost effective to implement even the smallest brands can implement them.