Temporary pop-up stores are, well, popping up all over the place. Now is a pretty good time for temporary stores as many retailers are reluctant to commit to a permanent space in high rent urban areas while landlords are anxious to fill vacant space even if it is only for a limited amount of time.
"I would say that we're seeing an increased level of pop-up shop activity and to a certain extent, some of their nature has changed," John Bemis, executive vice president and director of leasing and development for Jones Lang LaSalle Retail, told Dow Jones Newswires. "In general, pop-up shops have become a very popular marketing tool for a wide range of interests."
"It seems to be working for the retailers really well. As far as the brokers and their landlords, it's not something they really...like. But, considering the economic conditions now, it's something they're forced to accept," said Amir Korangy, founder and publisher of The Real Deal.
While pop-up shops don't carry a long-term commitment, it doesn't mean they come cheap. In fact, a high traffic pop-up space could run a retailer up to $200,000 just for a weekend.
Target has been one of the chains that has grabbed headlines and driven sales with pop-up locations.
"Pop-up stores are an exciting way to present our merchandise to the frequent and new guests, but aren't always the appropriate venue for our efforts," said Delia McLinden, a spokesperson for Target, told Dow Jones. "We do feel the natural pressure to evolve our strategies and often add creative twists."
Discussion Questions: Do you think we'll see an increase in pop-up stores in the future? What retailers or brands have impressed you the most with a strategic use of pop-up stores?