18 May 2016
As traditional retailers lose share to online competition and in-store sales drop compared to previous years, some retailers are looking to freshen up their stores and improve their bottom line by handing over some of that space to other sellers. Retailers such as Macy’s, Kohl’s, Nordstrom and J.C. Penney are experimenting with filling too-big stores with pop-up shops and mini stores staffed by another company’s employees. These stores-within-stores aim to appeal to core and new customers with specialized offerings and services while maximizing operational efficiencies.
Arnold Aronson, partner and managing director of retail strategies at Kurt Salmon, told the Chicago Tribune that while this idea of stores-within-stores isn’t new, it does seem to be “taking on more importance than in the past” as retailers look to maximize profits and make stores more enticing.