ABN Amro report: 'Retailers can make a difference with shop-in-shops'

According to Dutch bank ABN Amro, retailers can make a difference with shop-in-shops. In a report published by the bank today, ABN Amro states that shop-in-shops could be the answer to today’s changing consumer behavior, competitive retail landscape and decreasing profits.

Amsterdam shopping street - Photo: Archive

Shop-in-shops offer a combination of products that surprises the consumer, which leads to curiosity. At the same time it offers the possibility to fulfill multiple needs with one store visit, reads the report. ABN Amro therefore expects the number of shop-in-shops to increase in the future.

According to the report, testing at locations can be a good method for retailers to test products in a certain area, as well as gain more brand awareness. In case the shop-in-shop proves successful, the retailer can opt to open a standalone store in the same area. The location also helps bringing a product to the attention of new customers, other than the initial demographic.

Another important factor the report refers to is the match between two retailers:  brands should fit each other in terms of identity and brand values. If brands don’t match, it risks damaging the brand image. ABN Amro also regarded shop-in-shops as a strategy to optimize floor productivity and share accommodation costs.

ABN Amro believes that when retailers take factors such as location, brand matching and the opportunities regarding floor space into consideration, retailers can distinguish themselves in the way they present themselves towards the customer. By collaborating, retailers can respond together to the challenges of today’s changing consumer behavior, growing competition and reducing profit margins, as stated by the report. 

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