Advantages of Co-Retailing

Multiple retailers sharing the same space is a common idea for many customers. You can think of Starbucks in Target stores; Fossil integrated into Macy's or Sephora inside JCPenney. Industry experts refer to this as co-retailing. Co-retailing involves one brand bringing in another.

This partnership model can also be beneficial for small businesses. we're going to be seeing more of it. Still, it has yet to catch up with the independent retailer side. Co-retailing is an option for entrepreneurs who want to keep up with the times.

Here are four reasons you should join the co-retailing industry:

1. Offer Customer Conveniences

Customers can save time by combining complementary goods and services under one roof. Molly Moon's Home Made Ice Cream in Seattle, for instance, has opened a micro shop within Madrona Laundromat, which allows customers to "enjoy an ice cream during the spin cycle," according to its website.

Another option is Girls Auto Clinic, located outside Philadelphia. This offers full-service auto repairs with "manis and pedis" while you wait. Although One person owns girls Auto Clinic, it's a great resource for retailers looking to form partnerships.

By surveying customers and digging deep into customer avatars, business owners can determine if there are any off-the-radar synergies.

2. Create Better Customer Experiences

Experts see an opportunity to create a unique space and will attract customers, even though there's no easy answer.

People want to experience something when they leave the house. So it's possible to offer customers an experience that is different from what they could get at larger shopping centers. If there are two brands that resonate in the space, it's a win for everyone. Especially partnerships between product and service businesses or where people co-create goods.

For example, Cone and Steiner in Seattle are retail icons. This general store opened in 1915 but was relaunched in 2014 by the founder's great-granddaughter. This one-stop-shop is a unique twist on the traditional corner store and caters to both local customers as well as office workers on the go. It encourages customers to drink craft beer while they shop and has opened its doors to other local businesses as pop-ups.

A type of entertainment could be provided to service-based businesses during wait times. Retail growth is not about having more products. It's about providing a unique and distinctive customer experience.

3. Reduce Your Risk

Co-retailing is a good option for brands looking to open a physical location without making a large investment. It's safer than opening up your own location. Not only does co-retail offer the benefit of sharing rent costs but also shared staff, checkout technology, and marketing.

Co-retailing may also offer the opportunity to lease space at a shopping center with higher rents or larger spaces. This is too risky for small businesses operating solo. Combining businesses and expanding the range of offerings can increase foot traffic and attract publicity.

Experts do note, however, that two-business partnerships can pose a greater risk to small retailers than larger ones. However, renting in a space where smaller brands are housed can help minimize this risk. In those cases, it works very well.

Protecting your business by making sure the landlord knows about any co-retailing plans is a good idea. For example, say that I am the primary tenant. My store is a women's boutique. I then decide to bring in a coffee maker. There may be restrictions on competition within the center.

4. To Grow, You Need To Learn A New Set Of Skills

Co-retailing is "like signing up for professional growth." It will help you hone your entrepreneurial and merchandising skills.

Partnerships are best for established retailers who have the resources and staff to consider long-term branding and marketing and possibly open a new location.

It is possible to learn from big-box retailers and improve your professional development. Look at how fast larger retailers remodel their stores. Where are the walls? What kind of flexibility are they putting into their spaces? Where are the cashiers located? Do they have lounge space? What is their process for switching brands? What fixtures do they use?

Clients interested in co-retail who might hesitate to venture into unknown territory: What's your downside to creating excitement within your store? It's very rare. This is a great trend that has been accepted by most people.