Luxury Brands Push Store-Within-A-Store Model
concept is nothing new.
It’s been used in a
wide variety of retail channels. Often it involves largely non-competing merchants
such as a toy or office supply chain getting an aisle inside a supermarket,
a beauty products retailer inside a department store, etc.
More recently, according
to a Wall Street Journal article, the store-within-a-store model has caught
on with luxury icons such as Dior, Gucci and Prada that are looking to maintain
control over brand presentation, prices and sales. The brands lease space and
The push for store-within-a-store is largely the result over unhappiness
with the discounting that took place with luxury brands in 2008. A number of
high-end merchants cut prices up to 70 percent on some luxury merchandise.
is one of the luxury chains that is open to letting brands manage space within
its stores. It has worked with Prada on a store-within-a-store in its New York
"It’s very selective," Stephen Sadove, chief executive of Saks,
told the Journal. "We’re not doing this broad scale. We do this where
we believe it can be a win-win."
Still, many retailers are reluctant to
carve out space within stores to let suppliers operate their own businesses.
A disagreement between Prada and Barneys New York led the brand to pull its
women’s line from the department store
chain. The space is now devoted to another designer, but operated by Barneys.
RetailWire poll in January of this year asked how successful store-within-a-store
concepts were in building sales for retailers. Sixty-two percent said the concept
was "somewhat successful," 17 percent answered "very successful," and
seven percent "somewhat unsuccessful."
- Luxury Brands Stake Out New Department Store Turf – The Wall Street Journal
- Stores Inside Stores Lead to Sales – RetailWire
Discussion Questions: Does the store-with-the-store concept work better or worse with luxury brands? Do retailers get the short end in such arrangement with luxury brands?