Tuesday, June 7, 2016

To Draw Customers, Retailers Invite Other Companies Inside

Maybe a store divided can stand?

Macy's, Kohl's, Nordstrom and J.C. Penney all reported drops in comparable-store sales compared with the first quarter of last year, blaming online competition and shoppers' continued reluctance to spend.

One strategy traditional retailers are taking to fill too-big stores and spice up offerings is handing over some of that space to other sellers.

Retailers from Macy's to RadioShack are experimenting with everything from pop-up shops to mini stores staffed by another company's employees. The idea of opening stores-within-stores isn't new, but it does seem to be "taking on more importance than in the past" as retailers look to maximize profits and make stores more enticing, said Arnold Aronson, partner and managing director of retail strategies at consulting firm Kurt Salmon....

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