Shops within shops: The consumer viewpoint: More control by store groups expected

For some years now the technique of setting up “concessions” or shops within shops has been familiar in department stores. But with the closing of Bournes in London's Oxford Street, one of the most extensive practitioners of the technique — doubts began to set in. Dr Peter McGoldrick and his colleagues at UMIST have recently carried out a study into the question of shops within shops, based mainly on consumers' perceptions of them. They found that most retailers have now become more measured in their approach to concessions. It has been recognised that a diversity of names, design formats and staff loyalties may not produce the most coherent or powerful image for the retailer. Awareness of concessions amongst shoppers, however, is rather higher than expected. Younger and more affluent consumers tended to be the most aware, but most shoppers did not express strong preferences between concessions and own departments. The survey concludes that it would be a mistake to assume that concessions are entering a sharp decline — in fact there are signs of considerable growth potential in the superstore and variety store sectors. The major department store groups are however likely to seek even more control over their concessionaires, giving them less autonomy in their design and selling styles.