By Karin Jakovljevic | September 10, 2017 6:11 amCategories:
Co-retailing is the practice of two or more retailers sharing one space and each selling their products within the space. This concept has been in use for decades now for retailers such as Barnes and Noble and Starbucks. There are many benefits of co-retailing. Here is a look at some of these benefits, and at why co-retailing makes a lot of sense in the right situation.
1. Rent savings
Rent can be extremely high in certain areas of the country such as Los Angeles, Boston, Washington D.C., Austin, New York City, and others. If the rent is very high in a particular area, then it can put a burden on retailers and force them to sell more product in order to pay for costs. Co-retailing can help retailers to reduce their rent costs by sharing the burden with each other.
2. Complementary offerings
There is a reason why you so often see Starbucks inside Barnes and Noble Stores. It is because the two stores complement one another. People like to sit down and enjoy a coffee or a tea while they browse through magazines or books. If your retail location can find a partner with complementary offerings, then it may be a very wise decision to do co-retailing. For example, if your retail store sells hats, it may be a good idea to look for a store that sells gloves or scarves to do co-retailing with.
3. Provides new and exciting customer experience
Most retail customers are used to going into a retail store and only seeing products from one company, except in certain situations such as with Starbucks and Barnes and Noble. If you do co-retailing with another company, it could help to create new and exciting customer experiences that could incentivize customers to come to your store. It can also be more convenient for customers to shop for two brands inside one store location. So, this can further motivate them to come to your co-retail store.
If you are struggling to pay rent at your retail store, or if you think that you just need a change in order to shake things up, co-retailing may be a good option for you. However, in order for it to work properly, you will need to find a co-retailing partner who is compatible for your store. You definitely do not want to partner with any of your competitors for co-retailing.