What Goes Around Comes Around

admin BRANDS, RETAIL

From our own field-work it seems there’s a trend amongst some retailers back to the ‘old school’ in-store product demonstrators and brand experiential which is now being joined by another old school favourite – in-store ‘concessions’.

Okay, some retail sectors have continued the practice, for example John Lewis (e.g. selling Nespresso) and various aspects of department stores sales. But within supermarkets this sort of practice disappeared some time ago; perhaps supermarkets worried that in-store concessions would dilute their brand or, maybe, there was a competitive advantage by fulfilling all aspects of consumers’ needs themselves.

But things have changed; the sector is now increasingly competitive with profits squeezed forcing retailers to divest themselves of these distractions to focus on the core business. For example, Tesco have recently closed or sold Giraffe restaurants, Dobbies garden centres and Harris + Hoole coffee shops.

Now the challenge for these same retailers is how to ‘profitise’ their retail estate – hence ‘sub letting’ space to ‘in-store’ concessions makes sense.

This week the first Holland & Barrett store opened in the Tesco Extra store in Dudley, West Midlands with others to follow. Tesco are reportedly looking at other ‘partnerships’.

And they’re not alone. Other supermarkets are following suit. For example, some Sainsbury’s stores host concessions for photo chain Jessops. Morrisons have partnered with Timpsons to offer dry cleaning in-store and this month opened the first of several planned Doddle parcel delivery sites. Waitrose, meanwhile, have opened a number of sushi bars run by KellyDeli and branded Sushi Daily.

Of course when on holiday in Europe it’s a common sight when visiting Carrefour, Mercadona or Leclerc (being my last three holidays in France, Spain and Italy). No doubt it will work as well here.