The term „Shop-in-Shop” can be taken literally. It`s actually a case in a store. A department store or department store makes part of the store available to another store. The other store can use its brand in this particular part of the store. This formula is becoming more and more popular and, for example, Debenhams and the Dutch department store De Bijenkorf are typical examples of department stores (hosts) that increasingly use shop-in-shop concepts. An independent butchery will be integrated into a larger supermarket complex, based on a shop-in-shop agreement. The contract is not referred to as a lease by the parties. At the end of the term of the contract, the butcher applied for the protection of the Commercial Contracts Act in order to obtain the renewal of its agreement. The Belgian High Court recalls that the law on commercial leases applies only to leases where the taker (i) as a retail trader sells products or services directly to the public (iii) in leased land. The most important criterion, therefore, is „direct contact with the public.” Retail is site-sensitive and a relocation of retail activities would result in a loss of customers.
In the absence of direct contact with the public, the tenant does not need the special protection of the Commercial Contracts Act, because in this case, the location of his activity is less important. The High Court also states that contact with the public must be public. Contact with a small or specialized audience is therefore not sufficient. In the past, the High Court has stated that there is no contact with the public for a retailer operating from a larger market for which visitors must pay an entrance fee to access it (High Court judgment of March 2, 1989). On the basis of this decision, the case law and most scholars agreed that the same was true for a retailer operating in another activity (for example). B the restaurant of a zoo (e.g. Tongres, March 30, 1987), the bar of a theatre or sports complex, the library or tea room in a hospital or an independent butcher/bakery in a larger supermarket). This now appears to be confirmed by the High Court`s decision of March 30, 2014, but at the same time the Court stresses that contact with the public must be interpreted in light of the objective of the special protection provided by the Commercial Leases Act. As soon as the tenant can train his own clientele because of a direct contact in the rented area, this clientele should be protected by the application of the law on business rental. The customer base thus trained by the merchant must be very different from the customers of the supermarket. The High Court stresses that this must be proven and cannot be presumed. These are the exact circumstances: do you plan a shop-in-shop contract? You should keep that in mind.
A store-in-a-store, also called shop-in-shop, is an agreement in which a retailer leases part of the sales area to be used by another company for the operation of another independent store. In the case of a store in the store, one can think of a clothing store in a clothing store or a department store. In a retail area, the different functions of commerce, gastronomy, service and culture are often combined. Thus, there will be not only shop-in-shops, but also, for example, „restaurants-in-shops”. Want to learn more about Shop-in-Shop and what to consider for an in-store store concept? Please contact us. We`ll be happy to help! Amazon and Kohl`s have teamed up to facilitate product returns from Amazon customers. Buyers can go to some Kohl stores to return their purchases from Amazon. Kohl takes advantage of the fact that it fuels in-store traffic, while Amazon is able to better serve shoppers by streamlining the return process.