A rash of pop-up stores have opened in recent years to fill in the darkened spaces that were created during the recent recession. But many market observers don't see the trend going away, even in better times.
An article on Knowledge@Wharton, "Are Pop-up Stores Here to Stay?," detailed how various parties across retail are benefiting from the emergence of a wide variety of pop-up stores.
For landlords, pop-ups generally pay less than market rate but they do offer some rent for a brief period when a spot is empty. Filling vacancies is expected to remain an ongoing challenge, and a successful draw for a pop-up may attract a full-time tenant. The arrival of brokers and other build-out specialists has also eased the pop-up process for landlords.
For shopping centers and permanent stores, a pop-up can create excitement and a sense of urgency that can drive traffic. Wharton marketing professor Barbara Kahn said the time limit of pop-ups works similarly to the way demand builds around a luxury item.
"If too many people wear it, it's not a luxury anymore," she told Knowledge@Wharton. "There's a paradox if you sell too much of something. Perhaps that is some of what's going on. It's a way to make it exclusive and special because of the time period."
Finally, for those outside Halloween stores, doing the pop-up is said to be less about making money than building awareness or testing an idea. Target has particularly earned praise for creating buzz through its many start-ups over the last decade. But cosmetic and toy companies, airlines, restaurants, non-profits and others are also experimenting with pop-ups to test initiatives or garner publicity.
A pop-up of merchandise honoring the U.K. boy band, One Direction, is nearing the end of a three-week run in Tempe, AZ, representing the twenty-second city where the pop-up has landed across the globe. Several online retailers are also increasingly using pop-ups to physically bond with shoppers.
"I think it is a wonderful vehicle for small businesses to use to build their business and sample their business, meet consumers that want to be long-term customers," Christina Norsig, founder of PopUpInsider, a national online exchange that connects potential pop-up retailers with landlords, told The News-Observer.
- Are Pop-up Stores Here to Stay? - Knowledge@Wharton
- From Clicks to Bricks: Online Retailers Dabble in Physical Stores - Advertising Age
- Pop Stars: The rise of pop-up shops - Toy News
- Pop-up ventures a chance to test market, streamline products - The News-Observer
- One Direction open store at Tempe Marketplace - Arizona Central
- The pop-up trend now targets health freaks - FMT News