Store-within-a-store

A study by academics from the Wharton School found that the arrangement works because the retailer offers prime locations for which it can charge high rents, the manufacturer makes a higher profit than it would through a wholesale model, and the consumer gets a lower price and better service.

Flagship high-end department stores such as El Palacio de Hierro Polanco in Mexico City, De Bijenkorf in Amsterdam and El Corte Inglés Castellana in Madrid dedicate a half-floor or entire floor of their store to branded boutiques of clothing, accessory, cosmetics, and other high-end or luxury brands.

The U.S. department store Bloomingdale's has had such arrangements with Ralph Lauren, Calvin Klein, DKNY and Kenneth Cole, while Neiman Marcus has had them with Armani and Gucci.

[citation needed] Former JCPenney CEO Ron Johnson focused on the concept in the 2010s, with Liz Claiborne and Levi's sections in the chain's stores.

[11] About 1,800 (as of early 2024) Target hypermarkets (superstores) in the U.S. feature a large section branded as CVS Pharmacy selling medicine and personal care products.

Separate counters by brand: Cosmetics Hall at a Liverpool department store in Mexico City
Section of main sales floor: Toys R Us section at Macy's Philadelphia flagship , 2024