Have you ever imagined expanding your store's product portfolio without having to make a large investment in infrastructure? This is the idea behind store-in-store, a strategy that has been gaining traction among retailers in Brazil.
Inspired by other popular practices around the world, this model offers an opportunity to maximize physical store space, attract new audiences, and effectively increase profits.
If you are looking for ways to improve results of your company in the short and medium term, continue reading and understand what store-in-store is and how to implement it!
Translated as "store within a store" in Portuguese, store-in-store is a business model that allows one or more stores/brands to share the same point of sale, leveraging the same physical space, target audience, and infrastructure. It's a common format, especially among large retail chains.
This is because existing stores generally have enough space to offer areas to complementary or partner brands — which is also advantageous, as it promotes an integrated experience for consumers.
Operations can vary, from kiosks to full-service stores with their own visual identity and staff, but always within the framework of the main establishment. Therefore, it's worth considering this structure to leverage your business.
Implementing this strategy can bring several benefits to your store. Here are the main ones!
This is a strategic opportunity for brands to test new markets and regions without having to bear the financial costs of opening a standalone store. Furthermore, the maintenance fees tend to be lower, favoring business development.
This is because this modality allows you to assess public acceptance, adjust product offerings, and understand local dynamics. Once successful insertion is confirmed, it's possible to expand to other locations—and make improvements if necessary.
By setting up shop in an established retailer, you can gain immediate visibility, thanks to the brand's already established reputation. This opportunity arises primarily due to the consistent customer flow of the main establishment.
Furthermore, the store-in-store model facilitates access to the host store's target audience, which often offers a complementary product. Consequently, it is possible boost sales and create opportunities to retain new customers.
Being associated with a retailer with a good market image tends to increase the credibility and perceived value of the business. For example, when choosing a good partnership, steel shop signals to the consumer that it has been selected for a prominent position. This reinforces its quality and reliability.
The well-organized, high-quality environment also contributes to improving the customer experience, which positively reflects on the brand's image.
To take advantage of each of these benefits, it's important to implement them correctly. Therefore, we present four practical steps that will help you on this new journey. Stay tuned!
The first step is to identify companies that share the same target audience as your store. To do this, look for brands with complementary products or services that you don't intend to offer in the future.
For example, in the steel segment, ideal partners might be companies that supply items such as Personal protective equipment (PPE). After identifying potential brands, observe:
The second step is to create a flat that includes the costs, benefits, and risks associated with this model. To do this, conduct a careful analysis of the financial impact, estimating the revenue from space rental and the expenses of adapting the environment.
Also consider the logistics to be implemented for the success of the partnership. In this sense, understanding factors such as stock flows and space management is essential.
It's also important to consider marketing strategies to promote the partnership and attract customers. Having this plan in place allows you to visualize the expected results and identify critical points before implementation.
Now, it's necessary to evaluate the space in which the partner will be located. For example, including the companies in a steel products showroom can ensure that everyone can easily view the items on offer.
For example, alongside steel sheets and beams, a partner offering welding or tools can create synergy in the environment. It's worth remembering that the space should be inviting, well-lit, and have a high level of foot traffic.
Likewise, it will be necessary to work on organization the layout and integration of the new area with the rest of the store. This care is essential to maintain the visual harmony and functionality of the space.
Employees need to understand how store-in-store works within the context of a store.
Therefore, it's crucial to train the team to handle the new dynamics to ensure a smooth implementation and successful results. This includes knowledge of the partner's products and their integration with the main store's items.
Likewise, employees need to understand the limits of each party's responsibilities. This ensures a harmonious relationship between your team and your partner's.
Some recommended training courses include those that cover communication and customer support skills, as well as clear instructions on how to collaborate on operational issues.
As you've seen, store-in-store is a practical solution for your store, optimizing available space, and offering even more value to customers without the need for large investments. However, it's essential to adhere to the tips we've presented throughout this article to be successful with this approach.
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