October 28th, 2009
Pop Up Stores – The Newest Retail Rage
Move over Halloween and holiday stores; mainstream names from Gucci to Toys R Us might be the new seasonal retailers popping up at your local mall for a limited time only.
They are called pop-up stores or shops because these temporary retail operations literally pop up and disappear after a short amount of time. While Halloween costume shops and Christmas décor stores have been doing this for years, nowadays big-name retailers as well as niche retailers are filling mall vacancies for a few days or weeks instead of opting for long-term lease commitments.
And who wouldn’t blame trendy retailers and brands like Urban Outfitters, Target’s hip Isaac Mizrahi brand, and even luxury brands like Gucci for trying out the “get it while you still can” approach in the midst of this recession? It’s a creative way to fill up mall vacancies, get rent at a fraction of the price, to take advantage of the deflating commercial real estate market, to generate buzz around new products and brands, and set up and close down without much fuss. It’s also been effective in broadening market opportunities for larger department stores that need a fresh, new outlet: Toys R Us has opened Holiday Express locations in upscale malls that were previously off limits, and JC Penny is testing out interactive mall pop-ups that sends text messages to cell phones when shoppers get within 35 feet.
But smaller boutique names are getting in on the “now you see it, now you don’t” model too. For lesser-known brands, pop-up shops is becoming an ideal way to test our new lines without too much commitment, and an edgy, creative way to meet consumers. Lightning Bolt, a surf shop meets lounge bar, hosts a pop-up shop on Saturdays in New York City where you can check out its surf collections while sipping cocktails and grooving to a live DJ. Talk about cool, hip, and oh-so-limited.
In these frugal times, these quickie retail stores are a hot and recession-friendly bandwagon for retailers and landlords to happily jump on-board. A 5 day or 5 week lease is a lot less risky and easier to sign off than a 5 year lease, plus businesses can now strategically plan their retail operation quickly and with less fuss and complications, knowing they have a limited timeframe to operate.
This is a win-win-win situation for retailer, landlord, and shoppers too. I wouldn’t be surprised to see pop-up stores coloring bleak mall landscapes hit hard by the recession. With something fresh and new to offer, these pop-ups are helping shoppers get back in the saddle and back into malls for the holiday shopping season. But get in line while you still can; the next pop-up shop might disappear faster than you can say, “I want that!”
At Credit Karma Blog, what goes around comes around… So what do you think about this post? Agree, disagree, or have something more to say? We’d love to hear your reactions!
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