Grocery has always been one of the most reliably trafficked retail formats in the country — shoppers come through the doors multiple times a week, year in and year out.
That foot traffic is an asset. And more grocery chains are realizing they can monetize it through store-within-a-store leasing.
The store-within-a-store model — long a strategy for department stores and mass retailers — is now being adopted by grocers in meaningful new ways. As big-box retailers continue adding grocery to their core offerings and consumers increasingly expect a one-stop experience, grocers face real pressure to differentiate. The answer for many is becoming a true destination.
Health and Wellness: Complementing the Pharmacy
Pharmacy services have been a cornerstone of grocery for decades, but health-focused partnerships are expanding well beyond the prescription counter. The strongest shop-in-shop opportunities are those that complement what the pharmacy already does — serving health-conscious customers who are already walking through the door.
Prescription eyewear, hearing centers, weight-management programs, and nutritional counseling are among the most natural fits. These specialty operators bring expertise the grocer can’t replicate in-house, serve the same customer already coming in for their prescriptions, and drive additional visits on their own. Rather than competing with the pharmacy, they extend its halo.
Convenience Services That Reduce the Second Trip
The more errands a customer can complete under one roof, the more loyal they become to that store. Grocers are leasing space to pack-and-ship services, dry cleaners, wireless providers, hair salons, and pet supply shops — all of which eliminate the need for a separate trip elsewhere.
Every convenience added increases dwell time, reduces friction, and gives customers one more reason to choose your store over a competitor’s.
Food and Treat Concepts: Making the Trip Feel Like an Occasion
Beyond the grocery cart, there’s a growing appetite for food and treat concepts that turn an errand into a small experience. Quick-service and fast-casual restaurant concepts have found a natural home inside grocery stores — capturing the meal occasion before or after the main shop.
But some of the most popular and fastest-growing tenants are treat-focused concepts: boba tea bars, ice cream shops, soft pretzel counters, and fresh popcorn stands. These concepts create excitement, drive impulse purchases, and give customers — especially families — a reason to linger. They also generate social sharing in a way few other in-store tenants can match.
Professional and Financial Services: A Broader Opportunity
Traditionally, national bank branches were among the most common store-within-a-store leasing tenants in grocery. That’s shifting. Many large national banks have scaled back from in-store locations, leaving vacancies in high-traffic stores with a captive audience.
Community banks and credit unions have moved in to fill that gap — offering grocers a locally-aligned financial tenant that reinforces their community positioning. But the opportunity extends well beyond banking. Real estate offices, mortgage lenders, and insurance agencies are all well-suited to grocery’s customer base — reaching shoppers at a moment when they’re naturally thinking about household finances, major life decisions, and everyday planning.
The grocery store, at its best, isn’t just a place to buy food. It’s a community hub. Professional services tenants lean into that identity.
The Competitive Case for Action
Store-within-a-store leasing in grocery isn’t just an opportunity — for many chains, it’s a competitive necessity. As big-box retailers have added grocery to their core offerings, they’ve captured a portion of the traditional grocery customer’s spend. Grocers who offer more destinations under one roof can win that spend back, and build loyalty that outlasts any promotion or price cut.
The most valuable commodity for today’s shopper is time. Grocery stores that save it will earn the business.
If you’re a grocery retailer evaluating store-within-a-store leasing opportunities, InStore CRE specializes in exactly this — connecting host retailers with specialty tenants that fit their space, their brand, and their customers. Let’s talk.
— Kevin Marschall, Senior Managing Director, InStore Commercial Real Estate — the nation’s leading store-within-a-store leasing brokerage firm.
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- The Cost Advantage of Store-Within-a-Store vs. Inline Retail
Ready to Explore Store-Within-a-Store Leasing?
InStore CRE specializes in connecting specialty brands with high-traffic host retailers nationwide. Whether you’re a retailer looking to monetize underutilized space or a brand seeking a cost-effective expansion path, we can help.