As we anticipate a positive uplift in sales of circa 200% based on indicative feedback from clients across a variety of sectors, we take a closer look at the benefits of launching a shop-in-shop or branded space in a multi-brand store.
A multi-brand retailer typically generates higher footfall than a dedicated brand store, not least because many consumers choose to shop at a multi-brand retailer by reason of convenience for the store’s larger product selection. Accordingly, shop-in-shops and branded spaces have the potential to attain high volumes of sales from ‘walk-ins’ and customers carrying out product comparisons or browsing for leisure. This is in contrast to the type of customers that a brand might expect to see in its dedicated brand store; a customer who already knows the product or products they intend to purchase upon entering the store, or brand fans looking to expand their portfolio of merchandise.
In addition to ordinarily high footfall, the product needs of the ‘walk-in’ traffic of an industry specific multi-brand store, such as a luxury department store or a multi-brand sports store, are compatible with the store’s product offering, resulting in favourable sales conversion. In some ways, a shop-in-shop or branded space can be likened to PPC strategy in the online realm, with brands competing for (website) visits via placing adverts in locations which not only have large volumes of traffic, but relevant traffic for higher sales conversion.
Nevertheless, this felicitous ‘walk-in’ traffic can often be attributed to the astute reputation that a successful multi-brand retailer has built within its respective industry via effective marketing, or simply working hard to meet the needs of consumers of industry specific items – and mitigating the problems that its consumers typically face when shopping for these items.
Naturally, the more locations in which a brand appears, the more visibility a brand will incur. Likewise, the more locations in which a brand appears, the more likely they are to be located in people’s local areas. This will be an important factor for brands as we enter a post-pandemic society where consumers continue to shop more locally, not by reason of Covid but to support the recovery of local businesses and economies, among other reasons. In fact, some large retailers have already relocated their stores to populous locations in response to this trend prediction.
On top of this, a brand that joins the portfolio of a multi-brand retailer can expect to receive increased visibility via advertising through the retailer’s marketing. It is also not uncommon for brands to feature multibrand retailers in their advertising. It could be argued that the success of multi-brand retailers is entirely down to this symbiotic relationship between brand and retailer, with shared advertising being just one of many areas where this symbiosis occurs.
All this said, although there may be considerable opportunity to attain sales in a multi-brand retail environment, competition for sales is high. Consequently, it is paramount that a brand invests in its shop-in-shop or branded space to maximise its impact and make the most of the marketing approach.
If you have negotiated a site with a multi-brand retailer and would like us to support your brand with the design and/or implementation of a SIS or branded space, please do get in touch with one of our Retail Design Specialists – hello@design4retail.co.uk.
This short-read article comes from March’s insight report, “Maximising the impact of your shop-in-shop or branded space”. To get this insight report sent to you by email upon its release this week, and to receive monthly insight reports and retail highlights thereafter, simply subscribe to our mailing list by clicking the link at the bottom of this page and entering your details.
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