I came across an article on shop-in-shops, known many, many years ago in retail as branded vendor shops, and if they are a good fit for Macys.
I have been in retail for over 35 years now and have seen vendor shops come and go and back again. IF done properly, and the correct merchandise and brand both compliment and support the brand identity of the store as well as the target customer, then the answer is a quick YES!
When I first got into retail design, the majority of shoe and jewelry departments were all leased spaces, to name just a couple.
Macy’s has had private label shops for a long time that work extremely well and has added others along the way.
IF you read the comments from others on the Retail Wire site, you will see comments regarding JCP. For the record, some of the shops inside JCP are extremely successful. It’s a longer conversation about JCP than I am willing to cover in this blog, but the direction for them is working fine in some areas. Their problems are bigger than branded shops alone. ( I for one feel JCP will make it through these tough times.)
Throughout Asia, especially China, the department stores are nothing but shop-in-shops, managed, leased and operated by the brands. So one can also figure that as the population in the USA becomes even more diversified with different cultures, shop-in-shops are not a bad direction to pursue. Especially since Macy’s is picking specific markets to introduce specific branded shops.
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Discussion Article by RETAIL WIRE
Do Specialty Shops Make Sense Inside Macy’s?
Department stores have always been known for their mighty merchants. But Macy’s, the largest operator, has lately been getting help from some specialists inside the mall.
In early August, Lids, the retailer of caps and apparel for sports fans, reached an agreement to open licensed team merchandise departments in Macy’s stores and online under the name of Locker Room by Lids. The departments, located in about 150 markets covering major professional sports teams and colleges, will be operated by Lids. Lids will become the exclusive operator of Macy’s in-store team sportswear
The arrangement follows up on the agreement last fall to have Finish Line, the athletic footwear retailer, open Finish Line-branded athletic footwear shops in Macy’s stores and on macys.com. Over 450 locations will be directly operated by Finish Line as leased departments. For the remaining approximately 225 Macy’s stores that carry footwear, Finish Line began managing the athletic footwear assortment and inventory in Spring 2013, without the staffing or branding provided in the leased departments.
For Finish Line and Lids, both gain greater access to the female customer who doesn’t actively shop their stores inside the mall. In both cases, Macy’s gains greater buying clout inside the athletic space as well as selling knowhow for categories traditionally catering to young men.
Macy’s also has similar leased in-store shops with Sunglass Hut for sunglasses, Motherhood Maternity for maternity apparel, and Starbucks for coffee. Last holiday season, Toys “R” Us opened temporary shops inside 24 primary Macy’s stores. Other department stores similarly leasing space include J.C. Penney with Sephora and Joe Fresh as well as Nordstrom with Topshop.