Why Apple, Sephora and Nordstrom are jumping on this trend to pull in shoppers

Question: Can you think of some good possible collaborations? What stores would you like to see together?

As the pandemic drags on, big chains like Target and Nordstrom are looking for ways to keep consumers coming back to their stores. One go-to strategy is the store-within-a-store concept. It’s a way for one retailer to join forces with another by setting up a pop-up shop within their stores. Industry analysts say the approach has benefits for both parties. For instance, department store Kohl’s is adding as many as 200 Sephora mini shops inside of its stores in 2021 as a way to expand its beauty and cosmetics category. For Sephora, the deal helps the retailer expand its market to Kohl’s shoppers. Meanwhile, Target is opening mini Apple shops in a handful of its stores as it strives to become a one-stop shop to meet all of its consumers’ needs. From Sephora co-locating in Kohl’s to Apple in Target stores, these collaborations bring complementary customer traffic and added income, especially for the host retailer. It’s also a way to get shoppers to visit stores more frequently. For stores like Kohl’s or Nordstrom, shoppers maybe go once a month or once a quarter. By adding a store-in-a-store, now you can get a Kohl’s shopper returning more often for their beauty and cosmetics needs.

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