The trend of opening short-term sales spaces, known as pop-up stores, began in Los Angeles but has since spread to the rest of the world. In a relatively short time, the pop-up retail sector has grown by a much faster rate than expected and is now worth a whopping £2.3 billion in the UK alone. But why is the pop-up retail sector so popular and could it be right for you?
• An excellent opportunity to test a retail concept – Retail stores have significant initial setup costs and high failure rates, with only 47 percent of UK shops still operating after 4 years. A pop-up store is an excellent way to reduce the risk of your venture by testing the demand for your products exists before you commit to a long-term business lease.
• A great way to introduce your brand to your target market – Pop-up stores are a low cost but extremely effective way of building brand awareness before going to market or over-investing in stock.
• Profitability – The low costs and the potential for good sales can make pop-up stores highly profitable over the shorter term.
• Internal questions – Pop-up stores might be temporary, but to be successful they still need to be run properly. Do you have the time, funding, stock or know-how to execute the pop-up correctly? If not, wait until you have.
• Pop-up questions – The location of a pop-up store will play a huge part in its success or failure. Even if your concept is fantastic, it can still fail in the wrong location. What about the size of the unit, the timing and duration of the pop-up and the neighbouring brands? All require extremely careful consideration.
• Managing the opportunity – Opening a pop-up store is an incredible opportunity, but managed incorrectly it could be a disaster from a financial and a branding point of view.
How can CommonKIN help?
If you think a pop-up store could be the perfect shop window for your retail concept, we can help you evaluate your readiness to go to market and plan to execute the pop-up opportunity. Working with our key partners, we can also help you find suitable pop-up locations and weigh-up new opportunities as they arise. For more information, please get in touch with our team.