The Nature of Pop Up Stores and their Benefits
The concept of temporary retail establishments, or “Pop Up” stores, has been around for years. In fact, the idea can be traced all the way back to ancient times when merchants sold their wares on street corners or in an established marketplace. Just a few years ago pop up stores were fairly common during the holiday season when malls would introduce seasonal products. Fast forward to today’s ecommerce world and pop ups are gaining serious momentum and traction in places like malls, airports, shopping centers, and even inside other retail stores! Why is this becoming so popular when so many of us shop online with the ease and convenience of our smartphones and tablets? Let’s examine the pop up phenomenon and why they are so beneficial for small businesses.
- According to Storefront, temporary retail, more popularly known as pop-ups, are expected to generate $80 billion on an annual basis.
- An online directory (www.popuprepublic.com) featured over 7,000 pop-ups in 2014 alone and we are expecting that number to explode in 2016.
- The following categories are the biggest players in the pop-up market: farmers markets at $8 billion, flea markets at $30 billion, food trucks at $1 billion, yard sales at $1 billion, and pop-up stores, festivals, crafts and classes at close to $10 billion.
So what are the benefits that so many small companies are reaping from these pop up stores?
- Affordability – For retail stores that want to gain exposure while minimizing its overhead costs, they are able to take advantage of premium space at a fraction of the normal cost. Pop-up shops are often temporary in nature and smaller in size than conventional retail stores, the cost of rent is usually lower.
- Brand Awareness – One of the primary benefits of pop-up shops is that they help a brand generate buzz. With so many online stores it is hard to rank in high on Google search but fairly easy to gain attention if your “store” seemingly appears out of thin air overnight. People are interested in the sudden existence of a store, especially if they have a unique angle or appearance.
- Encourages Testing and Trials of New Merchandise – Since there is little money at risk, companies can try out new products that they want to market in the future. A pop up store will give immediate feedback as to the success or failure of a given item or service. An added bonus includes the education of consumers as they try the new merchandise. This is an excellent opportunity to learn more about your brand and company.
- New Revenue Stream – A natural benefit of a pop-up store is increasing sales by taking your store to where your customers are and making it more convenient for them to buy from you. There are significant profits with minimal risk for adding a revenue stream in a local area.