Many of us have heard of, or seen, pop-up shops. Whether they are in local malls, festivals, or any other place they can pop up, they are there temporarily to showcase their products or concept. They are often unique and have the goal to test the market or generate interest without committing to a particular location.

While there are clear advantages for the brand or vendor, often it can be difficult to find locations to pop up. So, instead of hosting a pop-up shop in the places mentioned, an easier option would be to join forces with a brick-and-mortar retailer. This retail concept with a shop inside a shop allows both the visiting shop and the host shop to benefit. Let’s look at it from each perspective:

For the established brick-and-mortar retailer, they set aside a small section within their store and open part of their floor plan to vendors in exchange for a percentage of sales or for rent. The advantages of this shop within a shop are two-fold. First, the established shop receives money to help pay for fixed costs when space is shared. Second, the main shop becomes known as one that features different interesting brands every month or few months. Hosting a pop-up shop develops relationships with other retailers in the community and partnering with other businesses selling complementary products, or items with a similar aesthetic, creates a unique experience for clientele allowing the potential to attract new customers and test out new revenue streams.

From the perspective of the shop that opens inside an existing retail location, it means they have a built-in marketing partner. Both shops benefit from driving traffic and getting customers to come in and spend some time in the shop. Additionally, selling from an existing store means a small business doesn’t need to fill and pay for an entire space. Moreover, working with another retailer (instead of a landlord) usually offers a lower rental cost and more flexibility when it comes to renting terms. Pop-in shops can open seasonally, or for brief periods, to promote sales or new launches.

Working a pop-in shop into an existing brick-and-mortar business plan or forming relationships with various shops that your business can pop into, allows both businesses to benefit. This type of arrangement is a win-win for those who want their business to survive and thrive, as well as for the customers who will enjoy the unique experiences.