Author: Sophie Pisano, 08 June 2017

With the growth of multichannel retailing and changing shopping behaviours, many retailers’ store portfolios contain too many large store formats than is actually needed to gain a reasonable reach in a given location. Within this highly competitive retail market, retailers are forced to review and adapt their store portfolios to best utilise available trading space – one response to this is through multi-fascia retailing. Whilst having numerous brands under one roof is by no means a new concept, it is becoming much more topical, especially through collaborations amongst major national retailers, which this blog will touch upon.

Following the acquisition of Home Retail Group, Sainsbury’s introduced Argos concessions in a number of stores, as well as rolling out the Habitat store-in-store concept, making Sainsbury’s combined Food and Non-Food offer more credible and appealing to Sainsbury’s family-focused shoppers. FSP visited one of the first of these stores, in St. Albans and whilst there are improvements that can be made, with regards to in-store navigation and the integration of brands, it is agreed that with Habitat’s appeal to a more affluent shopper and Argos’s multichannel approach, this prompts linked trips opportunities as well as increased footfall for Sainsbury’s.

Sainsbury's

Tesco has also recently announced a new partnership with Dixons Carphone, trialling Curry’s PC World concessions in two large Tesco Extra stores, Milton Keynes and Northampton, set to launch this summer. The move will incorporate two leading UK retailers, enabling customers to shop a range of electricals and mobile phones alongside their usual grocery shop.

Habitat

Edinburgh Woollen Mill (EWM) Group’s first multi-fascia store ‘Days’ has just opened in Carmarthen, Wales, which comprises a portfolio of the Group’s brands all under one roof including Austin Reed, Country Casuals, EWM, Jane Norman, Jaeger, Peacocks and Ponden Home. The EWM Group already has some multi-fascia stores, including those featuring the Jane Norman brand within selected Peacocks stores, however this is the first integration of all the Group’s brands in one large department store format. The Group’s brands have very different target audiences and will appeal to different shopper types, for instance Jaeger is a premium brand in contrast to Peacocks, which has a lower-value price positioning.  A clear challenge for retailers including the EWM Group is to ensure that concessions are well integrated within the store, through clear brand differentiation and navigation, to ensure the customer experiences a seamless in-store experience.  

Going forward, multi-fascia retailing can provide an efficient store concept for retailers that need to mitigate the costs of their store portfolios and help to maximise sales. When implemented effectively, it can also drive the customer experience and boost convenience for shoppers, providing a win-win arrangement for both retailers and shoppers alike.

Retailers: If you want to understand your customers better, to develop a store concept and location strategy capitalising on the latest retail trends, contact FSP 

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