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Sunday 24 September 2017
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Why Are Pop-up Shops More than a Passing Trend?

Why Are Pop-up Shops More than a Passing Trend?

EE conducted a poll in 2015 which indicated that almost a third of new businesses planning to start up would do so as pop-up shops. In August 2016, the Guardian reported that shop vacancies in the UK had risen above 10%, partly due to a fall in pop-up shops.

Are pop-up shops, therefore, a passing trend, or a more resilient indicator of a dynamic economy?

 

What are the Marketing and Business Benefits of Pop-up Shops?

Launching a pop-up shop is a way of testing your business offering in very real terms. It provides certain marketing opportunities and, if done right, a powerful launch-pad for your brand.

Pop-up shops have been the basis for well-established brands, such as Innocent Drinks.  They also offer economies of scale for smaller businesses starting out.

Pop-up shops combine affordability – they are usually temporary, and smaller than conventional retail shops – with a short-term commitment and greater flexibility. They can, for example, concentrate their trading activity at key, busy times then shut up shop for the quieter months.

They can also generate a certain wow factor in marketing terms, working to draw crowds and creating a buzz that normal, fixed shops are not easily able to do. This buzz helps establish a sense of urgency, which encourages consumers to more readily buy from the pop-up shop.

As pop-ups have become a more regular feature on the UK high street, consumers have come to expect a unique experience from them, a certain uniqueness they would not expect to get form a conventional, bricks and mortar shop.

Providing they can meet this expectation, pop-up retailers are poised to take advantage of the inherent marketability of the concept.

 

Enablement and Diversity

Short-term leases can prove a challenge to retailers, if they are unable to convert them into agreed, longer term commitments. It is this that contributes to a higher vacancy rate on high streets.  However, it may also be a reflection of seasonal trends, and the very agility and flexibility that can make pop-up shops successful may make them likely to vacate premises during certain periods.

In fact, short-term leases can be beneficial to enabling smaller traders to start up, as there is less of a barrier to them setting up and establishing themselves in a pop-up environment.

There is also an opportunity for town centres to have greater diversity in retail and, ultimately, to increase their footfall accordingly.

There is a degree of unpredictability about pop-up shops.  Could they offer a nimble and dynamic response to the seemingly unstoppable growth of internet shopping, and may prove to be the salvation of many physical retailers?