Problem For Big U.K. Grocery Chains: How To Use Excess Store Space Profitably

Big British supermarkets, beset by competition from discount grocery stores, online shopping, and convenience stores, are trying different strategies to put their extra floor space to work and earn income. One idea is the “shop-within-a-shop”: concession agreements with non-food businesses, including retailers, financial services firms and professional services. Tesco tried a similar idea before, renting unused space to restaurants and coffee shops. Those efforts “failed to give consumers a compelling new reason” to shop at a supermarket. So Sainsbury and Asda have worked out deals with catalogue marketer Argos and photographic retailer Jessops. Tesco is looking at deals with dentists, hairdressers and opticians, whose work would complement store offerings.