A shop-in-shop or ‘pop-in shop’ allows a brand to sell its product or service in a new physical market space without having to commit to an expensive, long-term shop rental. Where pop-up outlets already offer a less costly alternative to a permanent retail space, shops-in-shops give greater flexibility, both in terms of costs and market reach.

In this piece, we’ll explain what a shop-in-shop is, as well as its purpose, highlight the major advantages it has over other retail concepts, and discuss some ideas for how to plan and set up your own.

What is a shop-in-shop?

Simply put, a shop-in-shop is a mini shop within an existing retail space. It’s occasionally referred to as a ‘pop-in’ shop because visitors to the main retailer have the opportunity to pop into the other retailers’ space while onsite.

How do shop-in-shops and pop-up shops differ?

Pop-up shops are a less-expensive option than longer-rent retail outlets. They represent something different to shop-in-shops in that they offer a dedicated retail space purely for your line of products and/or services. By contrast, shop-in-shops are located within existing outlets, which means customers will inevitably have a split focus between the main retailer and the pop-in shop when visiting.

That’s not necessarily a disadvantage, however: the footfall at established retailers is invariably a lot higher than that of pop-up spaces. And while pop-ups operate for shorter time spans than regular retailers, shop-in-shops have greater flexibility in terms of timings as well as help organisers keep their rental costs down.

What kind of businesses launch pop-in shops?

Businesses offering almost any type of product or service have the potential to benefit from launching a shop-in-shop.

In 2021, gardening and DIY supply store Homebase agreed to open a series of pop-in shops in various outlets of clothing and home retailer Next. The synergy between home, DIY, and gardening supplies makes this a natural partnership for both parties.

Similarly, department store John Lewis has announced its intentions to launch mini-versions of its shops inside Waitrose supermarkets. Given that both are part of the same group, this also seems like a logical fit.

In the US, Apple has opened 17 pop-in shops in Target outlets so far, with more expected in the future. For the tech company, having a physical presence inside a department store with such a broad appeal gives it another real-world market space at a fraction of the cost of opening 17 more Apple Stores.

Exploring the increase in shop-in-shops

If shop-in-shops make sense for the business opening up within another retailer, what is the advantage for the host outlet?

In a retail landscape affected dramatically by the impact of COVID-19, pop-in shops represent a win-win for both partners. The host retailer benefits by offering something fresh and exciting to its customers, while the guest retailer gets an opportunity to sell within an established setting on a limited scale. In both cases, costs come into the equation. The guest can rent the space within the host’s outlet and reach all of their existing customers at a fraction of the cost it would take to launch a dedicated or pop-up store – and with much less risk. The host, meanwhile, can benefit from the guest retailer’s financial contributions to their own rental costs – while simultaneously reaping the rewards of potentially increased footfall and engagement thanks to the new offering.

In addition, the flexibility offered by the lower time and financial commitments allows guest retailers to potentially open outlets in more locations at the same time. In doing so, they can quickly adjust their approach to take advantage of consumer trends and brand hype. The same is true for hosts, who can replace pop-in shops easily to fit their regular customers’ needs – or to attract new ones.

7 Benefits of the shop-in-shop model

There are several major advantages to the pop-in shop approach that can be summarised as seven key points. Read on to discover the benefits of the shop-in-shop retail model:

1. Piggyback on an existing customer base

The first major advantage is that brands looking to reach customers without having to advertise can do so by opening inside an existing retail outlet. Any visitors to the host shop will be aware of the pop-in shop as well. As such, any prospective customers who happen to make the trip to the host retailer become a captive market for the shop-in-shop.

This benefits all three participants in the exchange. While the pop-in shop has a straightforward means of attracting new customers from the host’s existing customer base, the host can potentially keep their existing customers on site for longer. Meanwhile, the customers themselves have the benefit of being able to find new or different products in the same store. That is an important benefit for those potentially looking to cut back on shopping trips in a post-pandemic environment.

2. Reach new customers

Reaching new customers is a constant challenge for businesses of all sizes. Catering to a new set of prospective buyers can be a daunting challenge – especially if the brand is looking to expand into a different market.

Pop-in shops offer brands the opportunity to broaden their customer base without having to pivot (or even completely change) their marketing strategy. By taking the original retail concept into a new setting – particularly one with its own, established customer base – brands can stick to their repeatable model of success when it comes to attracting customers but still get their message through to a new group of buyers who may have not have been open to it previously.

A change of setting can make all the difference to how a marketing message is received, and targeting shoppers who are already in ‘buy mode’ is a lot more straightforward than tweaking your approach substantially to appeal to a new set of consumers.

3. Try new locations

Opening a new retail location can be an expensive process. From initial research to planning, the time spent on preparations alone can be costly in terms of staffing and opportunity costs. And that’s before taking into account rental costs, any necessary site renovations, hiring, local marketing efforts, and more.

It makes sense, then, for businesses to at least consider the shop-in-shop option before committing to new premises. That’s especially true when taking into account the flexibility of pop-in shops: brands can be agile and experiment with different locations at a small percentage of the cost of setting up permanent fixtures in new areas.

4. Take advantage of seasonal shopping habits

Consumer shopping habits are affected by seasonal interests. From spring trips and summer holidays to back-to-school and Christmas present shopping, all sorts of retail businesses can capitalise on specific seasonal motivators and the increased foot traffic they bring.

Any attempt to target seasonal shoppers, however, has to be offset by cost. Fitting out a whole new retail space to cater to shoppers during a specific season would be unlikely to pass even a cursory cost-benefit analysis. Shop-in-shops can offer a straightforward and cost-effective solution.

5. Improve brand awareness

Getting people to recognise your brand is half the battle of turning them into customers. Less-established businesses can therefore benefit from working with more widely recognised names.

Pop-in shops put products and marketing materials in front of potential customers who might have never heard of your business. The expectation is that they will associate the pop-up shop with the host retailer. Their choice to visit the main shop indicates a positive preference for the more established brand, so forming that association can only be a good thing. Even if they don’t end up buying anything, those consumers will hopefully remember the name of the shop-in-shop just by walking past it.

6. Engage with customers

Large retail spaces, with room for plenty of stock, can make for a poor customer experience. Smaller spaces with a specific offering can often lead to better customer engagement. Pop-in shops are an excellent example of that sort of curated space – one that can be specifically designed to create a top-notch consumer experience.

For online brands, this can be an even more significant benefit of a shop-in-shop. If you’re considering your first foray into the physical retail space, getting the initial point of contact right is of critical importance.

7. Experiment with experiences and activations

Where traditional format retail locations come with a fairly standard set of expectations from the typical consumer, a pop-in shop represents a chance for businesses to experiment with something a little more ‘free-form’.

In-shop immersive experiences or product demonstrations can enhance the customer experience beyond the norm. Workshops, where customers can create something with the product on offer can be a fun way to engage casual visitors or upsell dedicated customers. Showcases and events can have a similar impact: getting the customers to participate in entertaining, informative activities can really build brand loyalty and encourage snap purchases.

Planning a shop within a shop

Now that you’ve discovered some of the main advantages of setting up a shop-in-shop, we’ll discuss the preparations you’ll need to undertake before opening your own. Keep reading for a step-by-step overview of how to plan for the launch of your pop-in shop.

Choose a retailer and location

As we’ve already covered in the examples above, the synergy between guest and host retailer is crucial for deciding where to locate your shop-in-shop. The partnership with your host retailer should be mutually beneficial between all three participants: you, your host, and the customers. Even if your interests align with your host retailer’s – and vice versa – that needs to come with a tangible benefit for the consumer if your partnership is going to be a fruitful one.

The overall brand ethos of your partner is important. Make sure it aligns with yours to avoid confusing consumers. On that note, be sure to identify who makes up your retail partner’s main customer base. If their demographic profile – their average age, interests, spending range etc – is one that approximately matches your ideal customer, then the shop-in-shop is likely to be a success. If not, you may want to consider alternative options.

Similarly, it’s a good idea to consider the location of your prospective retail partner. If, for example, your business focuses on selling water activity supplies, choosing a retail partner that sells sporting goods might seem like a good fit based on an active customer profile. But that won’t help sell your water-related products if the shop is located 100 miles away from the nearest body of water.

Customer experience

As mentioned above, an enjoyable customer experience is a crucial component of a successful shop-in-shop. An immersive activity goes a long way to engaging visitors, increasing positive brand awareness, and achieving sales.

If you sell cosmetic products, for example, why not offer a complimentary make-up tutorial to visitors to your pop-in shop? Or, if you sell bespoke scents and perfumes, you could set up a workshop for guests to blend their own scents.

Anything that helps create a memorable experience will increase your odds of hosting a successful pop-in shop. If you’re looking for some more inspiration for immersive experiences to enhance your shop-in-shop idea, have a read through our Complete Guide to Experiential Marketing.

Designing the visuals and displays

Although larger spaces have their own challenges from the perspective of customer experience, pop-in shops occupying smaller spaces require meticulous planning to make sure that the limited surface area is utilised to maximum effect.

Start with a floor plan that takes into account external facing and internal facing displays, as well as customer flow-through. Branding elements should always be visible but not obtrusive and the same applies to product placement. The visual aesthetic for your shop-in-shop should clearly represent your brand and advertise your products (or service), but not in such a way that it compromises the overall customer experience.

Combine physical and online shopping

Combining the physical space of your shop-in-shop with your online presence is a great way to expand your product offering.

Try implementing an online ordering system for items they can see in the pop-in shop to have them delivered directly to their homes. Not only will that improve the customer experience for many who don’t want to carry their purchases around while they do their other shopping in the host shop, but it will also help you save on stock space.

Exploit the limited-time nature of the pop-in

Much like a pop-up shop, pop-ins are limited-time enterprises. With proper planning, that in itself can be a major selling point for savvy retailers.

Entice visitors to check out your shop-in-shop with offers limited to sales in the physical shop. Encourage on-the-spot sales by offering price reductions and/or other perks to deal-conscious consumers. Fostering the sense of urgency that comes from a limited-time setting can help move products in a way that more permanent offerings (online or physical) find it hard to match.

How to set up a retail shop-in-shop

Here’s a quick checklist of how you can make important preparations for your shop-in-shop idea:

  • Pick a retail partner that matches your ethos – and one that shares a similar customer base.
  • Contact your chosen partner to convince them to host your shop-in-shop. Be sure to highlight the benefits to them, namely: bringing your customers into their shop and adding a new experience for their existing customers.
  • If your proposed partner has multiple outlets, specify in which one you would like to set up your shop-in-shop. Remember to choose your location wisely based on what product and/or service you have to offer.
  • Draw up a contract between you and the host retailer. It should stipulate exactly what the space will be, its position in the shop, how long it will remain active, what the financial impact will be for both parties (i.e. will you pay rent or a proportion of your sales?), and what the responsibilities and liabilities are for each participant.
  • Set up your space. Focus on customer experience as much as possible by incorporating a few retail activation ideas.
  • Budget for the occasional immersive event to attract new customers and keep existing customers engaged with what you have to offer. Bear in mind that these events can be logistically challenging, so it’s important to plan ahead.
  • Set up an online ordering system for selected products in-store to bridge the gap between physical and digital spaces. With the increasing popularity of the BOPIS (buy online, pick up in-store) model, it makes sense to give customers the option to, effectively, pre-order their purchases online before collecting them in your pop-in shop.
  • Factor limited-time offers into your revenue projections. Promotions can be crucial in helping to drive sales while your pop-in shop is open, but make sure you can afford them cutting into your profits.
  • Promote your shop-in-shop before it’s open and while it’s active. Social media is a great way to build momentum pre-launch, and in-shop advertising can remind customers of your pop-in’s presence while they’re on site. Be sure to research some other shop-in-shop examples beforehand to see how they’ve done this.

Shop-in-shop ideas

Now that you’ve got your planning checklist out of the way, you can move away from laying the groundwork and start focusing on more creative shop-in-shop ideas. Here are a few examples to provide you with some inspiration:

Fashion shop-in-shops

Fashion brands can set up pop-in shops within established department stores and retail shops. This is a great way to engage with new and existing fashion-savvy customers.

There are plenty of examples of successful fashion concessions in UK department stores like Harvey Nichols and Harrods. In 2021, fashion rental company My Wardrobe HQ launched a shop-in-shop in Harrods. Harvey Nichols has also recently played host to a pop-in by New York-based tailoring label Theory. On the other side of the pond, the recently renovated Macy’s in New York’s Herald Square featured a freestanding Michael Kors pop-in cube shop.

Buy & collect shop-in-shop

One effective tactic for a shop-in-shop is to allow customers to combine their retail experiences.

Where digital offerings tend to only allow customers to deliver purchases to their homes or a small range of collection points, a pop-in shop can change that dynamic dramatically. Glenfiddich, for example, recently offered a bespoke personalisation service for bottles of their Glenfiddich Grand Cru ordered through Harvey Nichols. Customers who collected their bottles in person at the Glenfiddich shop-in-shop at the department store were presented with a personalised gift.

The advantage of this approach is that it not only allows you to engage customers further with a special offer (Glenfiddich was also time-limited for purchases over the festive period), but it means that you can bring customers into your physical boutique to showcase more products or convince them to repeat their purchase.

Food retail collaborations

Food and drink brands can reach new audiences directly by opening pop-in shops in existing cafes, pubs, or restaurants.

Food takeovers are becoming increasingly popular at established venues as diners’ dietary habits change and traditional offerings struggle to keep up. It’s often a win-win, therefore, for food and beverage providers to become residents in a cafe or bar.

Pubs frequently host tap takeovers’, where boutique and craft breweries replace tried and tested ales and lagers with more novel offerings such as Session IPAs. In the same vein, London-based vegan chefs Verde recently introduced a vegan pop-in at Camberwell’s Grove Tavern so the pub regulars could sample some more eco-friendly fare.

Creative displays

Shop-in-shops aren’t limited to traditional retail displays. They could use creative stands to give the feeling of an up-market stall, display homeware as though it’s in someone’s home, or have panels and displays specially designed to create an immersive enclosed space.

Back in 2018, bold beauty brand Too Faced opened an attention-grabbing display at Sephora’s Champs-Elysées outlet. They transformed the shop’s façade with a vibrant, creative look to help capture the attention of Sephora’s younger shoppers. The result was a total contrast from Sephora’s more understated style and helped Too Faced make an impact with the launch of their ‘Peaches and Cream’ collection.

Help stores diversify

Pop-in stores like the one Sephora hosted by Too Faced can help both brands reach new customers by identifying – and filling – gaps in their product inventory and/or brand narrative. By partnering with a similar business with a more vibrant, youthful aesthetic, Sephora realigned its own brand message with Too Faced. It sent out a message that their shop was ready and able to cater to a different sort of clientele: one that would appreciate the Too Faced brand values as much as – or more than – Sephora’s.

Another great approach is to look for retailers that might not currently stock items relevant to their primary offering. For example, a homeware shop might not stock gardening supplies. It might make sense, then, for them to partner up with a mini garden centre as a pop-in shop. This is exactly what happened when Next agreed to play host to Homebase pop-in shops: the latter company sold gardening supplies in a shop-in-shop which fit in perfectly next to Next’s homeware offerings. Having the two together can only benefit a significant proportion of customers.

Ready for your own shop-in-shop?

Shop-in-shops can be a creative, cost-effective way to reach new customers in the physical world, as well as tap into a pre-existing consumer base. Immersive events at those pop-in shops serve to enhance shoppers’ experiences, helping to build brand awareness, keep buyers engaged, and drive sales.

If you’re considering launching a shop-in-shop event, be sure to sign up to Eventbrite to help manage the process and promote it with Boost.