The Shop in Shop business model refers to the practice of retailers or service providers opening an independent location within the retail space of another business. Generally, the integrated business is free to choose its own product range and design its own sales space, requiring no concessions in terms of brand promotion. These constellations can generate beneficial synergies, resulting in a win-win situation. The hosting establishment benefits from customers attracted to the smaller subproducts branches or services, as well as from rent collected; the smaller branch benefits from having its brand prominently displayed in a busy shopping area or workspace, as well as from access to less expensive resources such as space or labor. Integrating a business into another company's space has proven to be a more cost-effective and flexible option than building one's own store, and of course, setting up a Shop in Shop can sometimes provide access to a prime location that would be difficult or impossible to obtain otherwise. 
Clearly, the host company's regulars serve as target customers for the integrated business, and there are a number of benefits for the company that rents out its space: customers may become more loyal as a result of the added value presented by the additional products and services on offer; it can generate revenue from rental income and save on product selection and presentation, as these tasks will be handled by the integrated business. Shop in Shop establishments provide their customers with a broader selection of products and services and facilitate convenient one-stop payment solutions. The cooperative contract for Shop in Shops can be structured in a variety of ways, from traditional rental agreements to innovative franchising concepts.

When and how to apply Shop in Shop: 

Consider the Shop in Shop pattern if you sell your products through distributors or intermediaries. The pattern enables you to increase your customers' brand awareness by allowing them to interact more directly with your business. Additionally, you will be able to solicit customer feedback on your solutions.
Well-known companies that use this pattern are McDonald's and Ikea.