30.01.2017

Together we can do more. “Shop-in-shop” is a good solution for the retail industry

The “shop-in-shop” formula is perfect for aspiring entrepreneurs. A chance of renting shared space means lower costs. It also allows you to reach a wider audience of potential clients, also in prestigious locations.

Can we do more working together? Of course. Development of this idea in retail industry might be shop-in-shop formula. It is very popular outside Poland. You can compare it to a specific market place where you can find many different products. Brands are renting their spaces for a specified contract period. These agreements are much more beneficial, reducing rental costs for the necessary amount of square meters. It distinctly reduces the financial costs – to rent the whole place for themselves in an attractive location, a businessman has to sign a contract for several years. Especially in the case of starting businesses such commitment might be particularly difficult.

In shop-in-shop formula there is a space for number of brands. The range of products can compete with others or complement them. A good example would be the store offering an assortment from the field of fashion and beauty. As a result, customers can find in one store clothes they need as well as cosmetics for everyday care. The shop-in-shop business model was successfully implemented by giants such as Macy’s, Nordstrom or Neiman Marcus. Studies also show that the shop-in-shop formula is stabilizing price competition. The shop-in-shop brand compete on low prices, interesting and functional design of the equipment of the store as well as the customer service.

In Poland shop-in-shop formula is still relatively infrequent solution. Increasingly it is used in bookstores, where in addition to books, you can also buy complementary products like coffee and cake.

Ergo Store is successfully implementing a shop-in-shop business model. So far, we had the opportunity to produce shop-in-shops, among others, in Turkey, England, Spain, Denmark, the Netherlands, Germany and Switzerland. Welcome to cooperate!

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    30-720 Kraków