Target first established the retail collaboration trend 25+ years ago and has continued to popularize it ever since, bringing high fashion to its customers through collaborations with such renowned brands as Isaac Mizrahi, Diane von Furstenberg, Lily Pulitzer, Joanna Gaines and Ulta Beauty. Each partnership is supported not only with an exclusive and/or limited-time assortment, but also a physical change in the store environment, ranging from dedicated endcaps to full, branded shop-in-shops. Target’s success has paved the way for other brands to follow suit. 

Burberry’s 2022 “Burberry: Freedom to Go Beyond” capsule collection with popular video game Minecraft was inspired by the brands’ shared affinity for the natural world. In pop-up stores around the world, large screens signaled the introduction of the collection with replicas of the game’s pixelated digital landscape. Minecraft players were given access to matching digital wearables from the collection for their game avatars to wear.

Spearheading the three-way collaboration trend, Dick’s Sporting Goods (DSG) recently launched an exclusive running shoe collection between DSG; Hoka, a popular athletic shoe brand; and FP Movement, a yoga and fitness apparel brand for women. JLL Design supported DSG in designing a limited-time shop-in-shop in DSG’s experiential House of Sport locations.

In the restaurant sector, Yum! Brands has championed the collaboration trend by co-locating Taco Bell and Pizza Hut, Pizza Hut and WingStreet, and Taco Bell and KFC over the years. The co-location strategy has not only reduced real estate and operating costs for the brands, but it also has enabled Yum! Brands to diversify its offerings and expand its reach.

In the spirit of nurturing its brands and embracing new ideas and collaboration, Dine Brands Global brought two of its legacy brands together as one restaurant concept: a dual-branded Applebee’s and IHOP. The interior pays homage to both brands’ iconic images, with a diverse, yet complimentary, menu. With IHOP shining in the morning and Applebee’s thriving at lunch and dinner, the collaboration captures all dayparts and optimizes operations with shared costs.

As this trend of brand partnering continues, the future could see an even more dynamic brick-and-mortar experience. Technological innovation will enable brands to meet consumers’ needs on a near real-time basis. Physical retail spaces may no longer have fixed roles but instead be designed with the flexibility to be transformed more frequently.

For example, imagine that a retail environment was cohabitated by different combinations of brands each season or quarter. What if consumers could build a head-to-toe wardrobe from 3 or more brands in a single fitting room? What if this multi-branded space evolved over the course of the day? What if it changed according to the mode or mindset of each consumer who walked in?

Source: JLL Design

Whether you are designing a multi-brand environment strategy for the next year or for a future-oriented strategy, success requires careful partnership selection that allows brands to trade on each other’s equities in a mutually beneficial way. In addition, a deep understanding of brand experience design will ensure that the necessary synergies are created in the environment.  

The partnered format is a powerful tool to ensure that your consumer experience is always compelling and relevant. What will your next partnership become?