Moët and Petco Tap Into Shop-In-Shops to Spark Champagne and Pet Essentials Demand

Amid the swiftly evolving retail environment, marked by economic fluctuations like inflation and restricted consumer expenditure, the concept of shop-in-shop experiences has emerged as a favored tactic for brands aiming to tap into the retail sector without bearing the full financial burdens linked with setting up conventional retail outlets.

The approach to retail offers consumers an immersive and curated shopping journey and provides retailers with a mutually beneficial platform for growth.

Aurate, a direct-to-consumer (D2C) jewelry brand, is recognizing this trend and has formed partnerships with Helzberg Diamonds and Macy’s to launch two unique product lines through these retail outlets.

This month, Aurate’s Laure collection at Helzberg Diamonds and the Audrey collection at Macy’s are set to debut. The Audrey collection will be accessible in 167 Macy’s stores across the nation, with an average price of $500. Meanwhile, the Laure collection, priced at a median of $350, will be found in 30 Helzberg Diamonds stores mainly in the Midwest. This strategic placement aims to extend Aurate’s presence into regions where it may be less familiar. The Laure collection will be accessible through the retailer’s online platform.

Each collection will feature a range of exclusive offerings that won’t be found on Aurate’s website. The Audrey by Aurate line boasts 144 SKUs, while the Laure by Aurate line offers 111 SKUs. This strategic move by Aurate will enable the brand to establish a presence within retail outlets, rather than potentially uncertain proprietary retail spaces.

Industries Look to Retail to Stimulate Demand

However, it’s not only jewelry that’s vying for attention in the retail arena. Even though the champagne category might not be flourishing, it is still placing significant wagers.

Read also: Champagne Sales Fizzling as Sober Bars Spark

Taking advantage of the uptick in consumer travel, Moët Hennessy Travel Retail has launched the inaugural Hennessy shop-in-shop at Zhuhai Duty Free Gongbei Port in China. This port serves as a key connection point between mainland China and Macau.

Unveiled on May 24, the arrivals boutique at Zhuhai Duty Free Gongbei Port spans across 41,870 square feet and occupies two levels, claiming the title of the largest duty-free establishment at a land port within the Asia Pacific realm.

Addressing the tastes of travelers and embracing local festivities, the Zhuhai establishment will showcase the cognac brand’s offerings, featuring exclusive and collectible editions of Hennessy cognacs.

Full Circle Experiences

There are retailers, particularly those focused on pet products, who are also adopting the shop-in-shop concept.

In late July, PYMNTS reported that Lowe’s and Petco had scaled up their trial shop-in-shop initiative from 15 Lowe’s stores to more than 300 locations.

The duo intends to cater to the needs of the 90.5 million households in the U.S., 70% of all families, who are pet owners.

Spotlighting rural communities across the country, the expansion facilitates easy access for customers to both Petco’s pet supplies and veterinary services right within Lowe’s stores.

“Our initial pilot program with Petco resonated with our existing loyal shoppers and introduced new customers to Lowe’s,” said Bill Boltz, executive vice president of merchandising at Lowe’s, said at the time of the announcement. “Partnering with top brands that our customers know and trust, like Petco, allows Lowe’s to continue elevating and localizing our curated assortment to ensure we have the right products in the right markets.”

The in-store sections will stock nutritional items and supplies from both well-known brands and Petco’s own private brands, as outlined in the statement. Furthermore, Petco’s Vetco Clinics, offering vaccinations, microchipping, and preventive medicine, will be available once a month at 75 Lowe’s stores.

Initiating the test of their in-store setups in January 2022, the companies disclosed that their research indicated a 58% rise in consumer interest in favor of choosing a home improvement retailer, provided they could easily access all their pet necessities in a single location.

The launch of the initial pilot program came in response to the increase in U.S. households welcoming around 11 million new pets during the pandemic.

Future of Retail and eCommerce

Shop-in-shops offer risk mitigation for both buyers and brands. In the case of D2C brands, opting for shop-in-shops presents a more cost-effective alternative compared to leasing standalone store spaces.

Smaller brands can achieve quicker expansion compared to creating complete brick-and-mortar stores by establishing shop-in-shops across various retail locations.

The approach acts as a valuable way to evaluate the retail prospects of specific places, especially when contemplating the potential of establishing permanent brick-and-mortar stores later on.

Flexibility is at the core of the evolving purchasing landscape. The extent to which a brand can swiftly respond in both online and offline spheres will play a pivotal role in retaining customers. Shop-in-shops strategically position brands to accommodate shifting consumer preferences and trends. They also represent a stride towards embracing the multichannel, or “click and mortar,” retail paradigm, offering customers the choice to browse and buy either online or in person.

Operating a shop-in-shop allows retailers to bring their brand narrative to life. In fact, 35% of individuals intend to interact with brands through experiential moments, according to research conducted by Forrester Consulting on behalf of Shopify.

Solidifying this notion is Kohl’s and Sephora, who teamed up their own shop-in-shop experience which drove total beauty sales to increase 150% year over year in Q1.

Read more: Kohl’s Digital Sales Drop Nearly 20% in Q1 as Sephora Helps Improve In-Store Results