What Is a Flagship Retail Store?

"Flagship" is a term that's oftentimes tossed around in the retail industry. The term was originally used to describe the commanding vessel in a military fleet, but the term is now primary used in the retail industry. If you spend any time visiting some of the nation's most populated cities, chances are you'll come across some notable flagship stores. But what exactly does this term mean when used in the retail trade? And what are some of the common characteristics of flagship stores? To learn the answers to these questions and more, keep reading.

As previously stated, the term "flagship" was originally used to describe the leading military vessel in a fleet of ships; it was the largest, fastest and most powerful ship in the fleet. Military fleets were organized and controlled by the flagship vessel. While the term is rarely used in this fashion today, the fundamental principle remains the same. A flagship retail store is the company's most successful and reputable store (oftentimes the largest as well). Here, retail companies can launch new test products to see how they fare in the market. If a product performs well, the company may choose to offer it in their other stores.

Examples of Flagship Stores:

• Lane Bryant - Manhattan
• H&M - Times Square
• Abercrombie - Multiple flagship stores throughout the world
• Old Navy - San Francisco
• Macy's - New York City
• Nokia - New York City
• Prada - New York City
• Saks Fifth Avenue - New York City

As you can see, New York City is a 'hub' for flagship stores, and for good reason: it's one of the nation's busiest, most populated cities. The examples listed here are just a few of the dozens of flagship retail stores located in NYC.

Objective of Flagship Retail Stores

There are a few key objectives of flagship retail stores, one of which is to set a good example for the company's other stores to follow. Most large retail chains send their best employees to run their flagship store. After all, these stores tend to receive higher sales volume along with more press attention than other stores, so it would only make sense to make sure they are run according to the company's standards.

Another objective of flagship retail stores is to test new product to see how it performs. Rather than releasing a new product in hundreds or even thousands of stores, a retailer may send it through their flagship store first.