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Shop-in-shop format catches rage in retail

With the retail houses experiencing down turn in sales, corrective measures are in offing. Brands plan to convert their stand-alone retail format to shop-in-shop format. What makes them adopt this format, Sharmila Das takes a look!

Tags: Shoppers Stop, Café Brio outlets, Kishor Biyani, Future Group

BY Sharmila Das  |  comments ( 9 )  | 
Shop-in-shop format catches rage in retail


Forerunners
Retail house like Future Group’s book and music chain, known by the name of Depot has adopted a policy of converting its stand-alone-stores to shop-in-shop within Big Bazaar. While the number of Depot shop-in-shops has risen to 123 whereas that of stand-alone-stores has come down to nine. Same goes with the UK-based footwear brand Lee Cooper. The Future Group is in the process of converting its 30-odd independent stores of Lee Cooper into shop-in-shops. As informed by Atul Takle, Head, Corporate Communication, Pantaloon Retail, “We are not closing the existing stand-alone stores; only the expansion of the format would happen in the shop-in-shop format, because we have ambitious plans for our major formats like Big Bazaar, Pantaloons and Central. It makes more sense having shop-in-shops for formats like Depot, because the footfalls into a Big Bazaar / Central etc. are much higher.”  

It is not that Kishor Biyani is alone in the race, but retail names like Dubai based Landmark group, Hyper City Retail etc. are on the verge of applying this policy of converting stand alone-stores to shop-n-shop format. Dubai based Landmark group recently laid out plans to convert their brands Kappa and Bossini into shop-n-shop format, though a group official says, they are also looking at exclusive stores for these brands.  

Shoppers Stop had earlier planned to open stand-alone outlets for children and women’s wear brand Mother Care. That plan also has been changed to shop-in-shop format recently. BS Nagesh, MD of Shoppers Stop said, “We open new stores without much information, but when we close them, we have complete knowledge about the operations,’’ Shoppers Stop, recently pulled out of a catalogue of retail ventures with UK’s Home Retail group under the Hypercity-Argos brand. The company exited the food business after announcing that its Café Brio outlets would be replaced with Café Coffee Day outlets.  

Factors triggering shift 
Soaring rentals and declining sales are the prime reasons for the shift from stand-alone retail format to shop-n-shop format. The customer fancy having caught by big format stores, the retail formats have started feeling pangs of customer run-out, and are no more considered to be the safe option for retailers. The sluggish economy has further hurt the retail format. Purnendu Kumar, Advisor, Technopak, opines, shop-n-shops in a larger format are helpful for retailers in getting more sales in comparison to specialty retail formats. Kumar says, “Big format stores are able to capture both monthly purchase and impulse purchase of shoppers.” Also the rent per square feet area is making these retailers to move. As retailers have to shell out more rent per sq. ft in specialty formats than hypermarkets where they book large space and get cheaper average rates. "Besides, by doing shop-in-shops they can save a lot on power, staff, security and other utility bills,” adds Kumar.  

   
  
  
  
  
 
 





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Deepak February 05, 2015 at 12:58 am

We are manufacturing men\'s ethnic wear. Any one intreset for shop?

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Rashmi Ranjan March 16, 2011 at 10:05 pm

Shop in shop gives the opportunity for the local stores to compete with the bigger chain of stores as well. I am looking for apparel brands interested in shop-in-shop. Interested brands may contact me at rashmi at gooval.com Contact: member@franchiseindia.com

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Hardesh Raj Bhola January 20, 2011 at 4:33 am

hi we area manufacturer of exclusive ethnic womens wear and looking to enter in shop in shop format any interested can contact me at hardyes@sify.com Contact: member@franchiseindia.com

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Krishna December 29, 2010 at 9:49 pm

Shop in Shop retail concept will be next superb retail model in India. The giant retailers must focus on the debut of emerging brands from India, they can provide value pricing with quality.As indian educated entrepreuners are trying their level best,and they also have a eye on international brands as world becomes a global village. product Contact: member@franchiseindia.com

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SRIRAM November 30, 2010 at 6:38 am

I am interested in a shop in shop in my premises which is about 17000sqft(5 FLOORS)IN PONDICHERY,in that casual clothing is planned for 5000sqft . pl send details of your shop in shop franchises .SRIRAM contact member@franchiseindia.com

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TARAN NARANG January 14, 2010 at 7:23 am

Sir, Looking for any Franchise or company intrested in taking on lease 1000 sq ft of shop sutiable for all types of brands in the very heart of Ahmednagar City. (Maharashtra). Intrested parties may please contact.

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IRFAN BANDUKWALA October 22, 2009 at 7:29 am

Dear Sir, I have 4 floors of 1700sq ft each in the heart of the city of Belgaum. I would like to lease the same to any company or open a francise. Please let me know if any company is interested

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Sushil Chandak October 21, 2009 at 11:06 am

Shop in Shop retail concept will be next superb retail model in India. The giant retailers must focus on the debut of emerging brands from India, they can provide value pricing with quality.As indian educated entrepreuners are trying their level best,and they also have a eye on international brands as world becomes a global village. product

Reply |

Manoj Dosi October 20, 2009 at 9:24 pm

I am interested in a shop in shop franchise of DEPOT ,in jaipur. I have a vewry good Reatil psace 1500 sq.ft on ground floor in aposh Shopping mall where i am already operating a prestigious brand men's garments store . Pl send details of your franchise . Manoj

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