At Bartuf we regularly come across the Pop-up shop phenomenon now that more and more retailers are investing in them. The popularity of those temporary establishments derives from their promise to bring plentiful financial and non-financial benefits to retailers. In fact, it is estimated that there are more than 10,500 pop-up shops in the UK, employing more than 26,000 people. So, what makes them so important for retailers and what benefits do they offer?
They bring life into retail by incorporating imagination and creativity
The fleeting nature of most pop-up shops lets marketers and designers develop creative strategies which will bring enthusiasm and joy to customers. However, due to the popularity of pop-up shops creativity is not enough, retailers have to invest in exiting and compelling consumer experiences. By doing that, they will drive sales and create a social media buzz around their brand which in turn boosts engagement. Don’t forget that we consume experiences as much as products.
Testing the Waters
Various retailers use pop-up shops to test the waters before they launch a new product or a brand. The fact that they are temporary contributes to deciding what will be their next move, whether a product or a brand is profitable enough, what people think about it and what alterations are needed. While numerous retailers use pop-up shops to determine if an area is suitable to establish a traditional retail store or if it doesn’t worth the investment.
They are perfect for digital retailers
Plenty of brands and shops operate entirely on the Internet and customers don’t have the opportunity to experience their culture and physically interact with them. That is why pop-up shops are an excellent opportunity for digital retailers to introduce their real self to their customers and get to know each other.
They are simple, efficient and cost-effective
Wherever there is traffic, a pop-up shop could be successfully established without having the infrastructure problems a retail store would face. While the rental rates for pop-up stores are relatively low it often depends on the region and the time of the year. Also, pop-up shops can cost 80% less than traditional retail shops and significantly boost sales volume. Therefore, it can be speculated that a well-made pop-up store can significantly increase the return on investment since its operational cost is less than a traditional shop’s and its profits are more.
Consequently, pop-up shops are not just a buzz word or a trend, they are here to stay. Ian Anderson, the Head of Retail Planning at CBRE emphasize that pop-up shops contribute to the regeneration of the High Street “by creating new interest, driving footfall and preventing vacancies”. So, if you are interested in making such an investment, make sure you develop a creative and relevant strategy, find a crowded area and contact the right company.