CONCESSIONS

A shop in a shop 

 

In retail concessions, the brand operates as a tenant – they rent a specific space and pay the department store a percentage of their sales for the floor space. Retail concessions quickly overtook wholesale as the best way to sell to department stores and became the go-to strategy move for luxury brands and rather new market-entry brands trying to buy themselves into a new country.

 

Whilst for a very long time concessions were found in department stores where space is allocated out to multiple brands all under one roof, the evolution of this trend now sees a lead brand supported by a similarly aspirational,  non-competitive, non-related, but complimentary brand. This new concept of physical retail partnership allows brands that are co-existing in the same space to offer an enhanced experience for their collective customer base. From increased spending and footfall to more time spent in-store, the benefits of this approach are really starting to stack up.

 

This model can be highly cost-effective for brands and can potentially ensure the highest gross margin across all their physical sales channels. But whilst this model seems to be a real win for the renting and leasing Brands, it does require a very strategic approach in which Interior Architecture and Brand Guidelines are strictly fixed so both parties can express their identity and authenticity. 

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If you wish to discuss your atypical concessions project, please feel free to contact us.