Barneys New York might well have filed for bankruptcy in 2019 — but it wasn't quite the end of the road for the beloved department store. January 2021 saw the launch of the first Barneys at Saks, a 54,000 square feet 'shop-in-shop'. It opened on the fifth floor of Saks' NY flagship store, located on Fifth Avenue.
Barneys at Saks is now available at both Saks' Fifth Avenue and Greenwich stores, as well as online. According to Vogue, the outlet stocks more than 30 womenswear and menswear brands, giving Saks a chance to invest in "more experimental and younger-leaning" designers as well as appeal to a new clientele.
As two of New York's most iconic department stores, the brands were former rivals – but the new partnership is apparently a perfect fit for both businesses. Analysis by ABG News Rooms shows the launch of Barneys at Saks sparked over 7.1 million social media impressions, as well as upwards of one billion media impressions.
Levi Strauss & Co. first strode into Target stores with its more affordable DENIZEN line a decade ago. Target added Levi's signature Red Tab jeans to its shelves in 2019. The companies have been collaborating ever since as part of Target's company-wide push to bring the "very best national brands" to its stores.
In January 2021, the two brands announced they were expanding their partnership with the launch of the limited-edition Levi's x Target homeware collection. The range included everything from dog beds to tableware, all made from recycled Levi's denim. More than 100 pieces went on sale in February last year, and the collection will remain in stores while stock lasts. The limited run is apparently an attempt to "inspire a more sustainable home", with high-quality items that are designed to last for years.
More than 160 Target stores received a sprinkle of fairytale magic before the end of 2021, in the form of their very own in-house Disney Store outlets. The outlets featured music and photo opportunities for shoppers, as well as areas for watching Disney movies and playing games. The move towards a more interactive shopping experience came as brands tried to tempt customers away from online shopping and back towards bricks-and-mortar stores.
Target and Disney announced their partnership in August 2019. Just seven months later, the COVID-19 pandemic hit Disney hard; the company lost more than $5 billion in market value in Q2 of 2020 alone. Although its stock price has since recovered, Disney announced in March 2021 that it would be closing over 60 of its stores due to declining sales. The brand's partnership with Target was an attempt to bring a much-needed holiday season sales boost, while increasing footfall in Target stores.
Target enjoyed another brand collaboration success in February 2021, when the retail giant announced the launch of a "new retail concept" in partnership with Apple. This high-end addition to Target's existing product lines saw pop-up Apple shops open in selected stores across the US.
Following the successful integration of 17 mini Apple stores in Target outlets across the US, Apple announced the expansion of its shop-in-shop experiences in October last year. There were 36 Apple outlets in time for the holiday season, all staffed by fully-trained tech experts who were on-hand to help customers navigate the stock – and their Christmas shopping.
According to Christina Hennington, executive vice president and chief growth officer at Target, the dedicated Apple sections are designed to turn shopping trips into an "experience". She hopes that the partnership will see footfall increase in-store, whilst also driving sales for both Apple and Target. Research shared by data company Numerator found that Target and Apple stores typically attract different types of customers. That means the "shop-in-shops" system could potentially help both stores to capitalize on the other's customers.
It's official: America's largest bridalwear chain David's Bridal is getting hitched to The Black Tux. As part of an exclusive partnership announced in March 2021, all 285 of the David's Bridal stores in the US have teamed up with the online men's formalwear brand to create a 'one-stop-shop' for wedding outfits.
The Black Tux was originally online-only but its partnership with "true wedding industry icon" David's Bridal will enable it to establish a dedicated presence in retail stores too. The Black Tux said that it hopes to become the largest suit and tuxedo brand in the US, while providing an integrated shopping experience for both brides and grooms-to-be. When you consider that the average American couple hires 14 different wedding vendors for their big day, this collaboration is likely to get an 'I do' from many people.
In July 2021, mattress company Casper announced that it was opening its first shop-within-a-shop, teaming up with Bed Bath & Beyond's flagship store in Manhattan. Bed Bath & Beyond is just the latest partner in a string of collaborations for Casper, which has previously collaborated with West Elm, Macy's, Nordstrom, Target, and Mattress Warehouse.
An additional 10 Casper outlets opened in Bed Bath & Beyond stores before the end of last year. With an expanding line of sleep-related products and reported net revenues of $497 million in 2020 alone, it's clear to see that seven-year-old start-up Casper is dreaming big.
In July 2021, Target announced that more than 100 of its stores would start selling products by cosmetics giant Ulta Beauty. Attempting to "revolutionize" shopping, the brands plan to roll out their new shop-in-shop concept across 800 Target stores in the US within the next couple of years. Ulta Beauty can currently be found at Target stores across 15 states, including Arizona, Colorado, New Jersey, Missouri, Texas, and Wisconsin.
Ulta Beauty carries a variety of well-known cosmetic lines, ranging from the high-end to the drug store. The brands available at Target include bareMinerals, Smashbox, Urban Decay, The Ordinary, and Anastasia Beverly Hills, among others. As part of the collaboration, Target has also employed in-store "Ulta Beauty-trained team members", who are on hand to offer specialist beauty advice.
Outlets of department store Kohl’s are having a makeover, courtesy of cosmetics giant Sephora. The first four Sephora at Kohl’s stores opened on 6 August last year, with a further 73 scheduled to open later that month. Sephora products are also now available to purchase on the Kohl’s website, with both brands hoping that the collaboration will help them to entice a younger demographic. It seems to be working: according to reports the partnership is on-track to "boost Kohl's top line by $2 billion or more".
The deal came about after Sephora parted ways with its former partner, JCPenney. The department store filed for bankruptcy in May 2020 and was purchased for $800 million by Brookfield Property Partners and Simon Property Group in September that year. Operations between Sephora and JCPenney will continue to wind down until 2023, when the brands' affiliation will officially be over.
What do you get when you cross a department store with the remote working revolution? The answer is SaksWorks, a new collaboration between Saks Fifth Avenue and real estate company WeWork. Described as "a new membership club for life and work", the joint venture was announced in August 2021, and has so far seen three Saks stores convert their unused space into social clubs, including offices, conference rooms, restaurants, and wellness studios. Two new SaksWorks locations, one in Manhasset and one in Westchester, are set to open soon.
WeWork operates the co-working spaces, selling memberships via its existing office rental technology. The business doesn't pay rent to Saks' parent company, Hudson Bay Co., and receives a share of the revenue for staffing and managing the offices. The partnership aims to profit from the recent rise in remote working, while also offering Saks protection from the dwindling popularity of brick-and-mortar stores.
In August 2021, Toys "R" Us announced an upcoming partnership with department store Macy's. The revived toy chain made its debut appearance in the 2021 Macy's Thanksgiving Day Parade, with outlets subsequently opening in more than 400 Macy's retailers this year.
The shop-in-shops concept is nothing new for Toys "R" Us – after all, founder Charles Lazarus started the brand in the 1950s by selling toys in his children's furniture store Children's Bargain Town. By teaming up with one of America's most iconic department stores, the brand hopes to refresh its image.
Macy's and Toys "R" Us have both had a rocky few years. Toys "R" Us filed for bankruptcy in 2017. The brand was subsequently bought by private equity groups, who launched two stores under the name Tru Kids, but both closed their doors for good due to the pandemic. Macy's, meanwhile, has also struggled, reporting losses of $3.6 billion in June 2020. By teaming up, the brands aim to attract "millennial parents" and fight back against their online-only competitors.
Wendy's, the third-largest burger chain in the world, is cooking up some vast global expansion plans. The company has announced it's working towards opening 1,200 new restaurants around the world by 2025, including 400 in the UK. On top of that, a juicy new partnership with Walmart should further boost the brand, allowing shoppers to sip milkshakes and munch on burgers while they grab their groceries.
The collaboration has seen opening of Wendy's Hamburger Stands in some Walmart stores, offering a limited menu to hungry shoppers. Wendy's announced the launch of some exclusive snacks to mark the opening of the first Wendy's Hamburger Stand in Ohio last August. These included a strawberry Frosty (previously only available in Canada) and chicken nuggets in Jalapeno Cheddar flavor, both available to purchase alongside classic menu favorites too.
Walmart isn't just branching out into burgers, by the way. In October 2021, Walmart and Netflix announced the launch of the Netflix Hub at Walmart – a digital entertainment platform that has been described as "the official one-stop shop to bring your favorite Netflix stories home".
According to Walmart, the Netflix Hub will be the streaming service's first digital storefront with a national retailer. The Hub will feature exclusive products themed around Netflix's most popular shows, including Stranger Things, The Witcher, and the recent global smash Squid Game.
As well as existing products, the Hub will also offer customers the chance to vote for upcoming merchandise. Walmart will produce the most popular items, with products available to purchase online.
In early December 2021, Target launched its latest collection with LEGO. Like the store's long-standing partnership with Levi's, this collaboration featured a range of exclusive new products, ranging from homewares and toys to pet accessories and clothing. The collection is available to buy in stores as well as online, "giving consumers a chance to curate and create looks as unique as their families... just as they would with LEGO bricks," according to Satwik Saraswati, Design Director at the LEGO Group.
Target is already one of the most popular destinations for LEGO shoppers, according to Target.com. The new partnership has enabled the retail chain to become an exclusive supplier, offering around 300 items that customers won't be able to find anywhere else. Target has also added a range of digital LEGO resources to its website, including downloadable designs, coloring sheets, and step-by-step instructions.
Lowe's stores have always been pet friendly, according to the brand's executive vice president Marisa Thalberg. But by offering Petco products and services instore, including vaccinations, microchipping, and grooming, the business aims to become a one-stop-shop for all their customer's home improvement and pet ownership needs. By the end of March this year, 15 Lowe's premises will offer the program in Texas, North Carolina, and South Carolina.
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