The rise of the pop-up store
Have you ever been to a pop-up store? If not, chances are you’ve heard of them. The pop-up store concept has been gaining popularity over the last decade and has recently been used to combat a spike in retail vacancy and drive in-store sales.
Retailers are looking for shorter lease terms and landlords are in dire need to rent vacant spaces left by the trove of recent store closures. This has led to a surge in the pop-up store phenomenon.
Pop-up store leases typically last anywhere from one day to six months, offering a low-risk option for retailers to reach new consumers. Pop-up stores can be used for testing the waters in new markets, sampling new products or taking advantage of a short-term marketing opportunity like a holiday or special event.
Why traditional retailers should take note, and why consumers are buying in.
Pop-up shops are well received among consumers for multiple reasons. For one, consumers like to engage with their favorite brands in a way that feels fresh and unique. In a recent JLL survey, 40 percent of consumers agreed that they would be more likely to buy from an online retailer that also had a physical store. For online retailers not ready to make a long-term real estate commitment, a pop-up store is a great way to gauge interest. This real estate alternative can also help create a stronger brand experience, especially for millennials that are more interested in “doing” rather than “owning.”
Considering a pop-up store?
If you’re considering a pop-up store as part of your real estate strategy, make sure to plan wisely.
- Know who your target customers and execute a pop-up store that will fit their needs and desires.
- Choose a location near your ideal customers. The newness of your store and limited time offering will help create buzz in the area.
- Let people know you’re here! Your site selection is just as important as what happens in the store. Once you have the site selected, make sure to promote the pop-up store with local store marketing campaigns that will create awareness and attract customers.
Pop-up shop not a fit for you?
If a pop-up store is not a viable option for your business now, take some cues from the revenue generators in the market.
- Create a limited time offer with a “pop-in” event.
- Leverage local events to market to new customers when foot-traffic will be high.
- Use pop-up style marketing to promote a new product or store layout.
Learn more about the latest retail trends.
