Will store-within-a-store concepts make Hy-Vee’s more attractive destinations?
As the competition between Amazon and Walmart exerts pressure to innovate throughout the industry, smaller and regional grocery chains are looking for new ways to maintain and expand market share. For Hy-Vee, the most recent step consists of building out the beauty aisle with a store-within-a-store partnership.
Hy-Vee is working with boutique bath and beauty brand Basin to open a store-within-a-store in Urbandale, Iowa, according to the Des Moines Register, continuing the expansion of the concept now in 11 of Hy-Vee’s 240 stores. The shop, called Basin and Beauty, takes up 2,200 feet and, at least in the new Urbandale location, required the grocer to shift and condense other parts of the store to make room. Hy-Vee has also introduced other high-end cosmetics to its general assortment.
The addition of Basin store-within-a-stores inside of Hy-Vee locations is in keeping with the grocer’s strategy of moving outside of traditional grocery by way of partnerships. Last year, the chain partnered with Wahlburgers to open, own and operate 26 restaurant locations while also bringing items from Wahlburgers onto the menu in the grocer’s in-store restaurant, Market Grille. Hy-Vee also partnered with fitness chain Orangetheory to offer dietary advice, store tours that point out healthy products and even workout classes in or adjacent to Hy-Vee locations.
Partnering to create store-within-a-store concepts has grown in popularity for various reasons.
In some cases, as with the long-successful Best Buy/Samsung relationship, the store-within-a-store gives shoppers a targeted brand experience with products that are adjacent to types of things they might already be shopping for.
In other cases, retailers use the tactic to go outside of their core offering and give their shoppers something off the beaten path. For instance, Walmart recently expanded a store-within-a-store partnership with CarSaver to offer in-depth car buying advice to Walmart shoppers in-store.
Another regional grocer, Schnucks, recently opened a store-within-a-store in partnership with a local specialty meat producer, Volpi Foods.
- Hy-Vee’s Basin and Beauty boutiques offer touch of luxury in every aisle – Des Moines Register
- Will burger and fitness partnerships reinforce Hy-Vee’s mission? – RetailWire
- Will shoppers go to Walmart to buy a car? – RetailWire
- Will a store-within-a-store work for deli? – RetailWire
DISCUSSION QUESTIONS: Do you think the Hy-Vee stores with Basin and Beauty boutiques will be a successful draw for shoppers? What do you see as the risks and rewards for grocers such as Hy-Vee pursuing store-within-a-store partnerships?