As department stores look to navigate the post-pandemic world, it may make sense to explore working with other retailers in arrangements that could benefit both parties.
"I think partnerships with other retailers are going to be a big, big driver for department stores," says Erin Schmidt, senior analyst and co-author of the recent Coresight Research report, The Future Model in US Department Stores. "We're seeing Kohl partnering with Sephora [to bring 850 shop-in-shops to Kohl's locations]. So that is another big traffic driver for department stores."
Target is also undertaking partnerships. In February 2021, it announced that it would open Apple mini-shops in 17 of its stores by the end of the fall. It is also partnering with Ulta Beauty to bring shop-in-shops to 100 stores, according to Coresight Research.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
