With stories about traditional retail largely focused on store closings and bankruptcies, pop-ups seem to be getting much of retail's positive press.
A late March New York Times story entitled, "Pop-Up Stores Thrive in a World of Failing Retailers," tallied many of the benefits and advantages of pop-ups. These include providing online sellers and upstart brands the opportunity to meet customers and let them touch and feel their merchandise. Temporary stores can be used to test product as well as locations.
On the cost side, pop-up rents have generally been less expensive and avoid the risks of a long-term lease. Their temporary nature also offers greater flexibility and creativity, and brings excitements to shopping centers. At their most creative, pop-ups are opening in apartments, bars and hotel lobbies and feature live music, art shows and/or free booze.
"More party than hard sell, this new breed of pop-ups is becoming increasingly innovative and fun — far more than the seasonal pop-ups that once prevailed," wrote Constance Gustkemarch for the Times. "And they are also increasingly profitable, experts say, since consumers crave these new experiences."
Many mainstream brands and retailers are following Target's success in using pop-ups to raise brand awareness and launch new lines. Nordstrom and H&M both brought digitally themed pop-ups to the South by Southwest and Coachella music festivals.
However, landlords could stop the pop-up craze. Despite the excitement pop-ups can bring to a shopping center, the assumption is that many landlords will prefer the predictable cash flow of a long-term lease.
Demand for pop-ups might also crash if they weren't a bargain. A Guardian article noted that pop-up rents for the High Street fashion district last fall rivaled permanent shops.
"The idea was that it was temporary at a low cost, and that is now the challenge," Alexandra Heywood, founder the Teastained Lil fashion brand, told the Guardian. "The opportunities I received in 2013 are not around any more. That's tough."
- Pop-Up Stores Thrive in a World of Failing Retailers - The New York Times (tiered sub.)
- Kit and Ace Upgrades the Travel Experience with Hotel Pop-up Series - Kit and Ace
- Are Pop-Ups a Permanent Fixture in Retailing? - RetailWire
- Pop-Up Stores Raise a Question for Landlords - The Wall Street Journal (sub. required)
- Op-Ed: What Will the Mall Look Like 10 Years From Now - PSFK
- Briefly... Pop Up Shops for Primedia Unlimited - themediaonline
- Are pop-up shops high street heroes - or just a temporary fix? - Guardian
- Are pop-up shops the solution to Britain's troubled high streets?- Business Zone
- Pop-up stores are hot on the retail scene - The Straits Times
- H&M Collaborates with the Coachella Valley Music and Arts Festival for 2016 - H&M