Previously a flexible solution for brands to test the waters in a new market, pop-ups have served retail in many positive ways. Now as retail moves into recovery mode, their role has been rethought and the characteristics of a popup might just be the flexible solution apprehensive brand owners and eager landlords are after.
If you walked the streets of your local shopping strip a few months ago you might have noticed boarded up windows and for lease signs plastered on shopfronts. According to Appear Here, an online marketplace for retail spaces, between June and August there was an increase of 125 per cent in retail listings throughout the US, UK and Europe. With these spaces sitting idly and landlords losing money in the meantime, pop up stores are back on the rise.
We’ve previously discussed how pop up stores play a part in the experiential retail economy, now with the potential to answer the problems of not only shopping enthusiasts but retailers and landlords alike, pop ups have become more than a store. So how exactly will they impact today’s retail industry?
As we know, no foot traffic means no sales, so while customers were hauled up at home, many retail businesses were struggling to keep up with rental payments on their spaces. The closures meant they weren’t making the income needed to support their overheads which has ultimately left brands hesitant to renew long term brick and mortar leases.
After the uncertain year they’ve had, the short term contract of pop up stores can act as reassurance for brands not willing to commit to long leases as well as a symbol of hope for landlords and consumers. They’re proof that we’re inching closer to the new normal in retail.
While landlords are looking to fill their spaces quickly, there needs to be an element that caters to a brands needs and the hesitance they feel towards committing to long leases. It’s now a buyer’s market for retailers and brands with low-budget, short-term, quick-install pop-ups returning to the scene.
While pop ups may seem like the low budget option for brands returning to physical retail stores, it certainly doesn’t label a brand as ‘cheap’. Across the Mediterranean, luxury brand Dior has launched several “Dior Riviera” pop-ups. A Dior spokesperson has said “Pop-ups complete our retail strategy. We aim to go where the client goes.” With the availability of spaces and the freedom to move brands can test the waters to find an untapped customer base, using pop ups to get back on their feet, while bringing in new foot traffic to the area.
With the potential of pop ups rising, these short term stores can be the retail solution that keeps everyone happy. Have you considered a pop up shop for your brand?
If you’d like to know more about how these stores can help you achieve your retail goals, get in touch with us at Storepro. We deliver temporary activations as a cost effective and innovative way to get your brand noticed and increase sales.