IndiCollage Blog

Feb ‘ 2020

Fractional Retail

Indi Collage Team

Fractional Retail — the new success mantra of businesses

What’s the dream business model of every entrepreneur — Greater brand visibility, more profits but lesser operational cost. Sounds about right?

Fractional retail helps a business make this dream come true. It is the business practice in which company owners co-rent a commercial space in a prime market and enjoy good customer inflow at a marginal cost.

Need for Fractional Retail

With commercial real estate prices shooting up higher than ever, especially in metro cities, it has become rather difficult for young entrepreneurs to lease a good location property for their businesses. In such a scenario, co-renting prime commercial spaces becomes the most viable option as it doesn’t costs you a fortune and serves the same purpose.

The practice of fractional retail also provides an opportunity to those entrepreneurs who look to expand their business in different locations (or cities) while minimising risk factor. A business owner can have multiple retail store presence at a considerably lower cost by co-renting commercial spaces.

Another significant reason to switch to a fractional retail business model is the e-commerce boom. As young shoppers are inclining more towards online shopping, retail stores are taking a major hit all across the world. And to combat this e-commerce wave and keep business afloat, retail stores must cut down on their operational cost without compromising on product quality and customer service. The fractional retail dictum proves a boon in this regard. The practice gives you the bandwidth to be the best while letting you reduce the input cost.

Perks of Fractional Retail

  • This business model allows entrepreneurs to start operations with less capital.
  • Businesses can share customers amongst each other.
  • Those co-renting spaces can come up with innovative ideas to make their retail store look more attractive.
  • Co-rental spaces can be used as a pop-up store to cater to the public demand of a seasonal trend.
  • Sharing business space keeps the staff of both businesses motivated and positive.
  • For online businesses, co-renting commercial space gives the opportunity to interact with customers face-to-face and draw crucial business insights.
  • Entrepreneurs can afford a multi-city presence without paying exorbitant costs following fractional retail business model.
  • Business owners can also use the fractional retail model to test waters in a new territory. Co-rental commercial space can help them gauge whether a permanent retail store would be profitable at the location or not.

Get started

Businesses can put their best foot forward by contacting a Fractional Retail facilitator. There are online spaces which not only help an entrepreneur with a co-rental space but also assist them in building their business. Such collaborators understand your business needs and find you the right space at the right price. Such help is crucial as these facilitators are well aware of the legal formalities that an entrepreneur must take into consideration for a smooth business experience.


This is a great time to book a shared commercial space and kick-start your business. So, seal the deal of your life now!