news • Apr 15 2025

Talking Shop: Retail’s Diverse Store Formats Empower Businesses

There’s no denying the importance of e-commerce. But when it comes to creating a solid customer audience, in-person shopping is essential. In 2023, a study by Insider Intelligence surveyed 13 major brick-and-mortar retailers, including Walmart and Target, and found that their in-store audiences were on average 70% bigger than their online audience. 

When it comes to establishing that audience, companies have endless opportunities at their fingertips. The diverse array of shop formats out there is a testament to just how creative each company can get. 

Here’s a look at some store formats empowering businesses and bringing in customers in droves. 

 

Pop-up Stores are Popping Up Everywhere

While pop-up stores started back in the 1990s, the concept continues to reign supreme in 2025. Pop-up shops are often used to test a market, create brand awareness, and engage customers. In 2023, there were over 40,000 pop-up shops in the US alone, according to IBISWorld. Meanwhile, across the pond in the United Kingdom, 2022 to 2023 saw an 18% increase in brands both small and large jumping on the pop-up bandwagon, The Guardian reported, according to Transform. No matter the location, brands recognize the value of a popup. 

Testing a market for demand allows a company to make a low commitment, while still profiting from the traffic of the location. Many customers and locals get excited about the brand’s potential to establish a brick-and-mortar location, generating awareness and drumming up anticipation. Compared to opening an entire store, a pop-up establishes a potential customer base at a price that’s much more cost-efficient. 

The diversity of pop-up stores is also particularly interesting. While small, unknown brands often use pop-ups to get their start, sometimes setting up in hotel rooms to avoid real estate prices, larger, direct-to-consumer brands that want to test out an area before committing to a brick-and-mortar store find them particularly useful. 

Consider Halara, the wildly popular direct-to-consumer athleisure brand that rose to success on TikTok. They opened a pop-up in New York in May. “Halara represents a new generation of digital brands that are looking to scale beyond the confines of social media,” Jason Goldberg, chief commerce strategy officer at Publicis Groupe, told Modern Retail.

Gabby Hirata, Halara’s global brand president, noted that the brand focused on following the desires of the customer discovered through customer surveys and focus groups that the brand regularly conducts. “When we ask potential customers why they haven’t purchased Halara, we often hear, ‘I don’t know if I can trust this social media brand,” Hirata shared. “Is this a real mature brand?”

While the location of a pop-up may be temporary, its solid location still conveys a sense of permanence to the customer. 

 

There’s a Surprise Inside: The Store Within a Store

A shop-in-shop, otherwise known as a “store in a store” or “SWAS,” is when a larger retailer offers floor space to another brand in a dedicated section. These shops can run the gamut from major operations to small kiosks. 

From CVS inside Target and Sephora inside Kohl’s to Gen Z skincare brand Bubble’s SWAS inside Walmart and Babies R’ Us inside Kohl’s, shop-in-shops are booming for business at all levels of retail. In February, SkinSpirit will launch a location inside Nordstrom with the goal of “elevating the in-store beauty experience” and allowing customers to get Botox, fillers, and other beauty services inside the department store, according to a release. 

Shop-in shops are overflowing with benefits for a brand. They allow each brand to show off its unique identity and make a name for itself while embracing the tremendous power of foot traffic. They can be used by emerging brands to show off their abilities in a non-e-commerce setting, embracing a larger audience. Larger brands know that customers want more brands in one space, thanks to an emphasis on one-stop shopping. The retailer benefits by earning rent while bringing more brands into their space. The mutually beneficial relationship allows all brands to profit from each other. Just consider the line at Starbucks inside your local Target store! 

 

The Wholesale Methodology

Wholesale shopping is more of a methodology than a store type. However, it proves to be equally as influential. A brand’s products are sold at wholesale prices to a retailer, which are generally lower because the buyer is purchasing in bulk. The retailer then sells them at market price. Consider brands like French-Belgian cookware company Le Creuset, often sold inside Williams-Sonoma stores. 

Tecovas, the American retailer of cowboy boots and western-style apparel, entered the wholesale market in 2024, partnering with nine retailers like Lebo’s in Charlotte and Texas Boot Company near Austin, Modern Retail reported. This was done with the goal of “further boosting its physical presence after nine years of operating only through its own stores and website.” 

While Tecovas has stores, its locations revolve more around lifestyle products. However, other retailers may be able to move more of the ranch-style boots in a market where the brand traditionally wouldn’t open a brick-and-mortar location. As a result, Tecovas CEO David Lafitte anticipates the brand awareness generated in wholesale will contribute to the overall growth and that wholesale could make up about 25% to 30% of its business within the next few years, the piece continued.

 

The Power of the Warehouse

Sometimes the best way to offload the remaining inventory is by hosting a warehouse sale. While every size or color of each item generally isn’t available, the ones that do remain are marked down because they’re the last of the product. There are significant benefits of warehouse sales, ranging from creating a sense of urgency to allowing customers to buy at a hefty discount. But most of all, warehouse sales help brands get rid of inventory quickly, providing plenty of space to fill up with new items that can be sold at full price. 

In the luxury market, sample sales are a popular version of warehouse sales. Gaining access to a sample sale is often highly coveted. Shoppers are eager to get their hands on items because of their luxury nature. Luxury or not, warehouse sales are a boost to a company’s sustainability since items end up beloved by their customers instead of sitting in landfills.

 

Customers expect more from brands than ever before, and the brands that have the most success are the ones who are willing to try new things. As seen through these four store formats, brands have the opportunity to put themselves out there in a unique way that speaks to their organization’s mission and creates long-term success in an industry that’s always changing.

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