“Shop in shop” partnerships between retailers and brands provide solid opportunities to engage shoppers in new ways. A host retailer gets a way to attract new customers and enhance their brand image. Featured brands gain access to a wider audience and increased visibility within a trusted retail environment. With so much at stake, it’s crucial to have a tight and refined process to get to a successful launch of a pop-in shop.
A Step-By-Step Guide With Examples
With a wide range of experience and expertise in projects of this kind, we’d like to share best practices at each phase of a “store within a store” initiative and examples from our recent project with Kohl’s and Babies R Us.
Project Backstory: Capitalizing on the nostalgic appeal of the beloved Babies R Us department store brand, we partnered with Kohl's to create a dedicated shop-in-shop experience within 200 Kohl's locations. This initiative aimed to revive the iconic brand and provide a destination for expectant parents and grandparents seeking a wide array of baby products. The focus of our efforts was the development of standardized displays for baby monitors and breast pumps. These displays, designed with uniformity in mind, offered a clear and informative shopping experience for customers seeking to compare and purchase these essential baby items.
Phase 1: Vision and Objectives
Best Practices
- Identify a Complementary Brand: If you haven’t already, identify brands whose products and target audience align with your existing customer base and enhance your overall merchandise mix. Look for a partner with experience in designing and implementing shop-in-shop experiences, particularly within your industry.
- Set Clear Goals: Determine your goals for the shop-in-shop. Are you aiming to attract a new customer segment? Increase sales in a particular category? Elevate the overall shopping experience in your brick and mortar store?
- Define Metrics: Establish key performance indicators (KPIs) to track the shop-in-shop's success, such as sales revenue, increasing foot traffic, and customer engagement.
Success In Action
Kohl's and Babies R Us sought to create a dedicated space within Kohl's stores that would function as a one-stop shop for baby products, catering especially to new parents and grandparents.
Phase 2: Concept Development
Best Practices
- Space Planning: Work with the partner to determine the optimal location and size for the shop-in-shop within your retail space. Consider factors like foot traffic, visibility, and proximity to complementary products.
- Design and Aesthetics: Collaborate on the design of the “store within a store” concept, ensuring it reflects the brand's identity while integrating seamlessly with your retail store's overall look and feel.
- Fixtures and Displays: Review proposed display fixtures, ensuring they meet your requirements for functionality, durability, and aesthetics.
Success In Action
We collaborated closely with Kohl's to understand their vision for the shop-in-shop experience, drawing inspiration from our display at the successful flagship store. Recognizing new parents and grandparents' challenges when making informed purchasing decisions for baby essentials, they aimed to address this problem by providing a clear, informative, and easily navigable shopping experience within a brick and mortar retail store. This is where the “life-size comparison chart” concept comes in. By showcasing various baby products from different brands in a standardized and unified display, the shop-in-shops essentially act as a large-scale comparison tool, allowing customers to evaluate products side-by-side and make confident choices based on their specific needs and preferences. This approach simplifies the decision-making process for shoppers, eliminating the need to navigate multiple stores or go through the guessing associated with online shopping to compare different options.
Phase 3: Engineering and Prototyping
Best Practices
- Review and Approve: Carefully review the engineering drawings and prototypes developed by the partner. Ensure they meet your store's structural requirements and safety standards.
- Provide Feedback: Provide timely feedback on the prototypes, addressing any concerns regarding functionality, aesthetics, or installation.
Success In Action
Understanding Kohl's need for efficiency, we designed displays that were "future-proofed" using durable metal and could be easily updated by store associates in the field. This approach ensures a streamlined process for Kohl's, allowing them to maintain the displays with minimal effort. The standardized approach, with 11 displays in most stores and 13 in larger locations, ensures a unified brand experience for customers across different locations. By listening to requirements and drawing upon prior successes, we created displays that met the hosting store’s aesthetic and practical needs. Recognizing the need for smooth and efficient ordering processes, we established distinct procedures for existing brands and new brands joining the shop-in-shop program.
Step 4: Finalize Production and Logistics
Best Practices
- Approve Quotes and Timelines: Review and approve the final quotes and production timelines presented by the partner. Confirm lead times for materials and assembly.
- Place Purchase Orders: Issue purchase orders to the partner for the required number of displays.
- Coordinate Delivery and Installation: Work closely with the partner to establish a delivery and installation schedule that minimizes disruption to your store operations.
- Staff Training: Train your store staff on the features and benefits of the shop in shop concept, products, and displays. Equip them with the knowledge and tools to effectively engage with customers and answer their questions.
Success In Action
Within four weeks of the initial concept discussions, we had designed and produced prototypes for all 13 display units. These prototypes were delivered to a test store for Kohl's review and feedback. This rapid turnaround demonstrated our commitment to meeting the tight deadlines and our ability to execute efficiently. We received full approval from Kohl's to proceed with production. This approval marked a crucial milestone, allowing us to move forward with confidence and initiate the manufacturing process. Just five weeks after receiving approvals, the first batch of displays was ready to be shipped to Kohl's stores. This marked the beginning of a carefully orchestrated rollout plan designed to get the shop-in-shops up and running in all 200 locations as efficiently as possible.
Phase 5: Launch And Update As Needed
Best Practices
- Equip Staff: Give your staff the ability to adjust the display as needed, as well as the tools and knowledge to engage with customers and promote the brand effectively.
- Marketing and Promotion: Collaborate with the brand on marketing and promotional activities to drive awareness and excitement for the shop-in-shop launch.
Success In Action
We maintained a consistent weekly shipping schedule, sending out displays for 25 stores each week. This strategic approach ensured a steady flow of displays to Kohl’s stores while allowing us to manage production and logistics effectively. All 2,250 display units were delivered, marking the successful completion of this ambitious project. The displays themselves were designed with both aesthetics and practicality in mind. Using durable metal, we "future-proofed" the displays, making them easy for Kohl’s associates to update in the field. This foresight minimizes the effort required by Kohl's to maintain the displays over time, further enhancing the overall efficiency of the program. The result was a visually cohesive, engaging, and user-friendly shopping experience for customers, contributing to the revitalization of the Babies R Us brand within Kohl's stores. The success of this initiative is a testament to the power of collaboration, creative vision, and meticulous project management. We are proud to have played a pivotal role in bringing the beloved Babies R Us brand back to life within Kohl’s stores, creating a dedicated space for new parents and grandparents to embark on their exciting journey of parenthood.
Use These Best Practices For Your Overall Success
By following these steps, larger brands and retailers can create a successful and mutually beneficial shop-in-shop experience. Partnering with a specialized firm simplifies the process, from ideation to execution, allowing larger retailers to focus on their core business while leveraging the partner's expertise to ensure a smooth and impactful launch.
Darko is Your Ideal Partner
When partnering with a retailer to activate a shop-in-shop program, consider our team at Darko. We have honed our expertise and processes to expertly handle large-scale, multi-brand projects. We understand the importance of advocating for the brand's vision while working within the retailer’s parameters. Our collaborative approach and ability to serve as a central point of contact ensure projects stay on track, meet deadlines, and deliver successful and impactful results.
