The concept of a pop-up shop is widespread, and there aren’t many people who haven’t heard of or experienced one. But what many people don’t realize is that there are many reasons a brand could run a pop-up shop with a wide variety of possible goals and objectives.
‘Pop up’ is the term applied to a shop or store that is deliberately temporary. A Pop-up shop is a store that “pops up” for a limited period of time to achieve a particular goal.
Overall, pop-up retail has become more prevalent over the past ten years with increasing pressure on long-term leasing models. COVID-19 has applied even more pressure, and brands are even less likely to take on long-term leases. In general, this is because short-term physical retail is more flexible and less risky than the long-term equivalent.
A pop-up store can look like a regular store, but many brands use them to create unique and engaging physical shopping experiences because they provide flexibility and the opportunity to experiment with less risk.
You’ve probably already experienced pop-up retail. They’re getting more and more popular with customers and retailers. Some of them you may not have even known were pop-ups. They often look like regular stores. Many brands run traveling pop-up shops, which they install in a location and then move it to another retail location every few months.
Pop-up Shops and Experiential Retail
In the world of modern retail, it is well known that experience is often the differentiator. Retailers that deliver good experiences – in line with their brand and what their customers expect – are the ones that do well.
Pop-up retail is an excellent vehicle for delivering such experiential retail. It’s the perfect opportunity to put on a show and entertain while collecting valuable data or launching a new project. Indeed, most pop-up shops are far more innovative and exciting than regular stores as brands feel they have the flexibility and freedom to experiment.
- Reach new audiences. A pop-up store in a new location with high foot traffic enables a brand to get in front of a new audience.
- Experiential marketing. “Pop-up retail” can be used to deliver a delightful short-term experience or reinforce a brand message with positive customer engagement. Brands can position themselves as cultural influencers, expand their reach and build brand loyalty. As powerful as e-commerce can be, nothing compares with a physical face-to-face interaction.
- Market research. Using promotions, events, or competitions, a pop-up event provides the perfect contact point to help you gather insight to better understand your target customers. This information can be critical in guiding future activities right across a business.
- Sell more or clear stock. While times are slowly changing, it remains a fact that a considerable number of transactions are still done in physical stores. A temporary storefront in an area with high foot traffic for two weeks can provide a sense of urgency and drive sales or help fashion brands shift stock before it reaches the end of its shelf life.
- Launch a new product. A pop-up event is a great option to showcase a new product or range with a bang.
- Test physical retail. An online DNBV store looking to take the next step can test whether it works with pop-up retail.
- Test new retail locations. Brands looking to expand their footprint can test new neighborhoods or countries before making a more significant financial commitment.
- More diverse and fluctuating retail stores, high streets, and shopping malls. Wider variety and more excitement.
- Opportunity to explore new brands and products.
- Pop-up shops are more likely to offer discounts, giveaways, and event-specific concessions than traditional retail establishments.
Cost of a Pop-up Shop
How long is a piece of string? The cost of a pop-up shop depends hugely on what you are hoping to achieve, the pop-up shop location, and the type of space. Factors such as duration, venue, and location can vary so much that it’s impossible to provide a relevant estimated cost. Overall, however, the pop-up model is considerably cheaper than traditional stores, and the reduced investment means a much lower level of risk.
For more on the cost of a “pop-up” shop, check out this article on ‘How much does a pop-up shop cost? ‘.
How to Find the Perfect Pop-up Shop Location
Thanks to Storefront, you can now find the pop-up store rental in just three clicks. Lofts, retail spaces, apartments, malls, you’ll find a wide range of pop-up shop venues from as little as $50 a day.