All across the country, retailers are taking advantage of store-within-a-store concepts to attract shoppers and drive revenue for all the merchants involved, according to The Sacramento Bee.
Grocery store chains have added coffee shops, including Dunkin' Donuts, Starbucks and Peet's Coffee & Tea.
J.C. Penney has Sephora makeup stores inside some of its locations and plans to launch Mango clothing shops, as well.
Macy's had FAO Schwarz stores before the company was bought by Toys "R" Us. Soon, Sunglass Hut will set up for business inside the department store.
"Sometimes it's stronger to offer more than one brand, making it better for the customer. Sunglasses, electronics, music, whatever it is, it can create a better, more powerful mix. That's where we're heading," Marshal Cohen, chief retail industry analyst with NPD Group, told the Bee.
J.C. Penney attempted to go more upscale with its own makeup sections in the past but failed to attract shoppers to the concept. The addition of Sephora has accomplished for the chain what it could not do on its own.
"It gave them cachet they didn't have," George Whalin, president and CEO of Retail Management Consultants, told the Bee.
"What Sephora brings is the ability to merchandize and sell cosmetics that Penney's hasn't been able to do well," Mr. Whalin added.
Discussion Questions: Are stores-within-the-store more critical to retail success today than in the past? Do you expect to see the number of these types of deals increase in the future?