If your retail or restaurant brand isn’t already collaborating, it may be time to explore multi-brand partnerships as part of the experience portfolio approach to format growth. Partnerships brought to life in unique branded environments are becoming a destination for consumers, with 32% likely to travel 20 or more minutes to get to one, according to JLL research.

Collaborations have become a powerful component of today’s retail marketing strategy, with brands typically teaming up in pairs to leverage the cachet of each other and extend the reach of both in a mutually beneficial relationship. While the partnered format historically involved two-brand collaborations, brands now are experimenting with three-way collaborations that allow for more robust content creation and storytelling than ever before.

The partnered format offers numerous benefits for retailers and consumers alike:

Extended reach. Partnered brands gain exposure to a broader audience for awareness and acquisition than they would alone. 

Enhanced brand image. The exchange of brand equities can potentially elevate or change brand perceptions.

Unique product lines. Partnered brands can offer limited-edition collaborations that generate buzz and traffic.

Customer convenience. Consumers can experience multiple brands’ offers in a single visit.

Increased efficiency. Both brands can reduce their operating costs by sharing space and staff.

Boosted sales. The whole may be greater than the sum of the parts, with potentially increased sales and market share for both brands. 

In addition to the added exposure to consumers, the investment in a multi-brand environment can be shared across numerous partners. All parties can gain numerous benefits from the partnered format, while potentially generating a greater return on investment together through healthier profit margins than could be achieved separately.

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. 

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?