This article discusses ways of evaluating the performance of Shop-in-Shops (SIS) located in a large departmental store or a shopping mall. SIS are managed separately and often pose problems while trying to distinguish their performance vis-à-vis the performance of the store. Based on their work with a national retailer, the author identifies four types of store formats _ performers, potential performers, foot draggers and concern stores that require different strategies to grow. Success of national, multi-location, multi-format retailers will largely depend on their ability to identify non-performers within their stores and take proactive action.

As organized retailing spreads its wings across India, a Pandora's box has been opened virtually. Every other day, one corporate house or the other is announcing its foray into this utopia. Deals with major brands are getting signed and new stores are popping up across the urban landscape. Voices of concern are getting drowned amidst all this hype and hoopla. Considering the fact that retail break-even takes a minimum five to seven years, can all the new entrants hold out? Or will they give in and sell out? One closer look at the retail scenario confirms the suspicion. Talks of some retailers selling out to big players are always on.

In the near future, we can expect some established retailers selling out to foreign retailers. But retailers who decide to stick on and fight it out, do they have the strategic wherewithal to understand how the business is moving? Some players like Reliance or the Future Group may work on the principle of improving the top-line, gain scale efficiency and work to improve the bottom line at a later stage. We have looked at this strategy more closely and felt the possible pitfalls that can prevent the retailers from consolidating their growth over a period.

One of them is the estimation of performance of Shop-in-Shops (SIS). SIS come in varied forms and sizes though their basic premise remains the same. They are brands/products that are managed separately from the rest of the store merchandise. Often their visual merchandising, layout, and promotion are different.

Global CEO Magazine, Shop-in-Shops, Departmental Stores, Foreign Retailers, Gross Margin Return On Investment , GMROI, Return On Net Worth, RONW, Business Strategies, Team Management, Merchandising, National Retailer, Retail Management, Marketing Management.