DISCUSSION
A marketplace for pop-ups wants to disrupt the retail real estate business
Written by RetailWire Staff
Source: thestorefront.com
In a world where many segments of physical retail are lagging, pop-up shops have never been so popular. Now one startup, being billed as “the Airbnb of retail,” has opened a marketplace that could shake up the pop-up model by making it easier for brands and retailers to rent.
Storefront, Ltd. connects brands and retailers looking to launch pop-up shops with available retail real estate, according to an interview with CEO Mohammed Haouache on Bloomberg. Mr. Haouache said that by using the marketplace, brands are able to book an open retail space in less than two hours. Storefront currently has a presence in Paris, New York, London and Hong Kong. The startup facilitates pop-up placement for 4,000 brands worldwide.
The Airbnb comparison made in the Bloomberg report is an interesting one given that some have accused Airbnb of disrupting urban residential rental markets in big cities — and not in a good way. Airbnb’s critics charge, as discussed in a Los Angeles Times article, that the use of properties as short-term rental units in popular areas takes them out of the rental market, creating scarcity and driving up rental costs for residents.
The extent to which Storefront or a similar marketplace might impact the rental landscape — and the pricing — for pop-ups and long-term retail leases remains to be seen.
But what has become clear in the past few years is that the growing popularity of the pop-up model may lead to it being a less cost-effective method of brand promotion than it was in the early days. Earlier this year, RetailWire reported brands sometimes finding that pop-up rental prices had begun to rival the prices of long-term leases. Still, the model represents a way for brands and retailers to be creative with how they get their names out there and expand their reach beyond their traditional retail footprint.
When questioned by Bloomberg about the move into physical retail at a time when e-commerce is ascending, Mr. Haouache noted Amazon and Google’s increasing use of pop-up shops to reach customers.
“Even the almighty online players need a physical touch,” Mr. Haouache told Bloomberg.