Shared space retailing or co-retailing is a relatively new concept in the business world. It’s like having a roommate but for businesses. We all know that to keep up with the industry’s ever-changing trends, we must come up with exciting ideas by the day. From out-of-the-box advertising to co-retailing businesses are going, and the public approves! To give you a better idea of co-retailing, let me give you an example of Starbucks partnering up with Barnes and Noble. Books and coffee? Sign me up anytime!
Not just books and coffee, but different brands that complement each other can work harmoniously to bring the best out of one another. Here I will emphasize the word “complement” because if the two brands are incompatible, this whole thing won’t work out. If two clothes brands decide to operate in a single space, which brand is benefiting? Sadly neither of them because they are potential rivals and can’t exist together.
Who should opt for co-retailing?
Co-retailing is an excellent idea for startups and small businesses. It offers lesser space rent and easy access to customers. However, established brands that have extra space can also benefit from sharing their space and earning from the rent money.
Some creative shared space retailing ideas
Shared space retailing is not just about renting brick-and-mortar stores but also renting any space to increase awareness about the brand. Co-retailing allows businesses to establish shops at prime locations, share utilities, and rent space together. Some of these shared space retail ideas are given below.
Pop-up Stores
Small business owners can set up pop-up stores for a limited period. These pop-up stores can be in the form of storefronts, stalls, or booths. Ideal places for these stores are malls, parks, or high-traffic areas. The purpose of these stores is to create a buzz around town and attract customers.
Concept Stores
These stores share a common idea, and various brands with products related to the notion showcase their products side by side. For instance, it is considered co-retailing when brands offering cruelty-free products come together under one roof.
Things to consider before sharing retail space
There is more to sharing a space with another brand than you might think. You must think about a lot of factors to avoid any unpleasantries. A beneficial and collaborative environment will only be achieved if both parties respect each other’s boundaries and complement each other in all possible ways. Below mentioned are some aspects that you can consider before co-retailing.
Check Compatibility
If two brands sell clothes in a shared space, that will be disastrous for both. A clothes brand will go more with accessories or a handbag brand. Both sides should attempt to minimize the chances of conflict and must try to augment each other.
Fair Division
One brand having more display space than the other can give rise to disputes. The area space must be equally divided or divided in a way acceptable to both candidates.
Choose Carefully
The vital purpose of co-retailing is to get access to a customer base of your requirement. Choose according to your needs. A candy brand co-retailing with a fitness-oriented brand will be of no good. A candy brand makes more sense than a toy brand because children are the prime customer base for candy businesses.
Shared Expenses
Sign an agreement before moving into the physical store. The document should include all the details about the division of the expenses, utilities, rent, and maintenance costs. To maintain accurate records of all the expenditures, all the data must be kept in written form.
Mutual Events
If you can exist together, you can plan together. Both brands benefit from mutual events, and loyal customers of one brand may also buy products from the other. Another perk of having combined events is lesser event costs. Both brands get to have a successful event without spending more than their budget.
Efficient Payment Methods
There’s nothing worse than a crowded space, which can occur when two businesses coexist in a single store. Avoid long queues and use barcode scanning and other more efficient payment methods.
Benefits of having a shared retail space
Hopefully, you now understand the advantages of co-retailing. It’s an excellent idea for new businesses to gain customers rapidly and spread brand awareness. Furthermore, it does not only help startups get customers but also helps them save money, which is valuable for startups. So if you plan to start a business from scratch, you know where to start.