Storeception: Why retailers keep putting stores inside stores

From Target’s new strategy to Nebraska Furniture Mart’s rotating brand showcases, retailers are turning to store-within-store concepts to drive foot traffic

HIGH POINT — Store-within-a-store concepts aren’t novel in retail. But one look around the industry lately reveals a renewed interest in the format. To stay competitive, particularly as many consumers turn to the internet, retailers are borrowing brand equity to create destinations and drive foot traffic. I believe the future of retail isn’t just more stores; it’s more stores inside stores. Or, as I’m calling it: storeception.

The benefits are straightforward: differentiation in the brick-and-mortar marketplace, reduced risk through a lower upfront investment and the ability to capitalize on synergy between brands. 

For furniture and home furnishings retailers, the opportunity may be especially significant. Consumers rarely shop for one product in isolation. That’s something that executives at Tamarac, Florida -based City Home observed in recent years. The retailer recently rebranded from City Furniture to City Home to reflect a refreshed merchandising strategy and new product categories, including an expansion into electronics.

The expansion from home furnishings to electronics is a natural progression, and one that has also recently been explored by Ikea and Best Buy. Last year, the two retailers announced a partnership that brought Ikea to select Best Buy locations as a shop-in-shop concept spanning approximately 1,000 square feet. Earlier this year, the two retailers expanded the partnership, with Best Buy opening consultation spaces inside two Ikea locations: Frisco, Texas, and Tampa, Florida. 

Earlier in 2026, Minneapolis-based retailer Target outlined its new strategies at an Investor Day event. Target announced its plans to remodel existing locations and open new locations with in-house Target Beauty Studios and home goods organized in a store-within-a-store concept.

Other notable collaborations are the co-branded Bed Bath & Beyond and The Container Store retail stores. In June, Bed Bath & Beyond Inc. announced the rollout of 22 hybrid stores across the country.

In home furnishings, store-within-store concepts are also being used as storytelling opportunities.

Home Trends & Design, a wholesale company known for its sustainable, solid wood furniture, announced its second showcase in partnership with Nebraska Furniture Mart in The Colony, Texas. The partnership, which started in July, will continue until mid-October. On the lower level of NFM, Home Trends & Design will have a dedicated spotlight space with its bestsellers, new collections and one-of-a-kind pieces, according to a news release.

Rather than competing for attention among thousands of products in a traditional showroom environment, the showcase allows the brand to create a more immersive presentation and connect directly with consumers.

Beyond furniture, the store-within-store trend is also happening in other retail categories.

Craft and supply retailer Michaels recently unveiled an updated store format at its location in Easton Town Center in Columbus, Ohio. According to an article from MarthaStewart.com, the new format will roll out to additional stores in North America this year, including six more in Central Ohio. In 2025, Michaels acquired the intellectual property and private-label brand of JoAnn Fabrics, a fabrics and arts and crafts supplies company. In late 2025, Michaels unveiled The Knit & Sew Shop and The Party Shop inside stores featuring JoAnn’s private-label products. 

While each retailer is approaching the concept differently, the various strategies respond to the same challenge: Give shoppers a reason to walk through the front door. As e-commerce provides an unparalleled level of convenience, brick-and-mortar needs to deliver a sense of discovery. 

I don’t think we’ve approached peak “store-within-store.” If anything, I think we’re only at the beginning. As retailers look for ways to keep physical stores relevant without constantly expanding footprints, sharing space might become one of the industry’s most valuable strategies.