The Allure of Pop-Up Shops

Posted Friday, November 13, 2015

[Photo Source: Storefront]
[Photo Source: Storefront]

Pop-Ups are Not Just a Trend Any More

Temporary, Pop-Up stores are becoming another go-to strategy for retail marketers to employ as a way to extend brand reach, enter new markets and introduce new products and services. The Pop-Up Industry has grown to be an approximate $10 billion industry according to PopUp Republic.

The term encompasses any type of retail establishment or event that is strictly temporary: here today, gone tomorrow.  Traditionally, retailers have used Pop-Up stores to generate incremental sales around the holidays, setting up a temporary store inside vacant spaces at the mall or strip mall. Today, pop-ups come in all shapes, sizes, and locations. These can be in the format of a standalone location, a store-within-a store (a shared location), a kiosk, and even a mobile vehicle reminiscent of a food truck or a roadshow.

The Allure of Pop-Up Shops for Shoppers

Pop-Up stores can be an exciting retail shopping experience, a refreshing alternative to the typical, impersonal online and mall shopping experiences. Shoppers buy in to the sense of urgency they provoke: “you can’t miss this” and ”limited time only”. Exclusive offers are a big attraction. And, for sure, consumers expect the experience to be unique. According to a PopUp Republic poll  here is what shoppers expect:

  • 61% want to find seasonal products
  • 39% - Unique services or products
  • 36% - Local product assortment
  • 34% - Great prices
  • 33% - Convenience
  • 30% are looking for a fun and unique experience

The Allure for Retailers and Brands

Consumer brands and retailers, from established to start-ups, find that Pop-Ups can meet many marketing goals besides just incremental seasonal sales. Here is how and why they are using pop-ups today:

  • Test how a new product is received by consumers
  • Test new markets and extend reach by setting up in multiple cities
  • Online-only retailers can test the waters of a physical location
  • Allow the consumer to interact with the products found online only
  • Allow shopper to be immersed in your brand
  • Create a sense of urgency with the consumer
  • More freedom to get creative than conventional retail
  • Gives them more flexibility and lower costs to launch

According to StoreFront, launching a Pop-Up is approximately 80% less expensive than opening up a traditional brick-and-mortar store location.

How Marketers Measure Pop-Up Success

Choosing the best Pop-Up model and the best location to target the right consumer for your brand is key. In an article featured in Retail TouchPoints, Jeremy Baras (CEO of PopUp Republic) stated that he believes that the number of store visits outweigh total sales. “Yes, retailers want to make as much money as possible and there’s a certain amount of success that’s measured through revenues and PNL statements. But the amount of customers walking through your store shows that they are interested in and aware of your brand, which arguably is just as valuable as making that sale, because that means that you have the potential for them to be loyal followers of your specific brand.” “They might get 30,000 people to come into the store ... but there might be another 300,000 impressions online,” he continued.

Given the allure to both shoppers and retailers, it's no wonder these retail concepts are no longer just a trend.

KDM POP Solutions Group supports retailers and consumer brand companies with every facet of their in-store marketing needs, whether temporary or permanent: POP/POS printing, merchandising displays, store fixtures, décor, signage & graphics. Put our retail industry expertise to work for you! Contact us today to to get started.

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Tags: holiday shopping , KDM POP Solutions Group , pop-up store


Maureen gumbert 05/11/16 4:42 PM

Jodie Thanks for your comment. I would imagine they sure do and most will operate the Pop-Up or Store-within-a-Store independent of the host retailer.

Jodie Gentile 05/11/16 4:02 PM

Do Pop Up Shops need merchandising? As a independant contractor I service many leading department stores on a daily basis and notice that many of the shops are in disarray after the initial set. I would love the opportunity to work beside these pop up shops and help them achieve maximum sales and growth. Could this be a possibility?
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