From Pop-Up Shop to Permanent

Pop-up retail shops are on the rise with many online-only retailers seeking to bridge the gap between e-commerce and brick-and-mortar retail. The transitory nature of the pop-up shop minimizes the merchant’s potential losses by a whopping 80%. And it connects the consumer with the brand in a more personal way than simply clicking “add to cart”.

Site Selection From Cyber to Cement

Hayley Barna, co-founder of the online beauty subscription service Birchbox, has spoken about the powerful customer interaction that pop-up shops provide. After opening 5 pop-up shops across New York City and The Hamptons, Birchbox opened its first physical store in SoHo in 2014. They are currently utilizing pop-up shops to conduct market research that will determine the locations of 2 upcoming stores.

Pop-up shops aren’t created for analytics alone; they’re also major buzz-builders. Having just opened its second brick-and-mortar store in Dallas this September, Reese Witherspoon’s clothing line, Draper James, hosted a pop-up shop in Highland Park Village this part May in order to boost the brand’s awareness and to connect with local influencers.

When Pop-Up Retail Goes Permanent

Pop-up shops, although very of-the-moment, aren’t necessarily a novel concept. Seasonal shops perfected the art of the pop-up long before it became a buzzword. According to a poll conducted by Independent Retailer, 61% of survey participants considered “seasonal products” the top reason to visit a pop-up shop.

Halloween City, the temporary retail division of the Party City Retail Group, has converted 70 of their pop-up retail sites into permanent Party City stores.

“By test-driving untapped markets with a temporary Halloween Store pop-up, Party City gains valuable insight into the viability of the location as a future Party City store.” says Shelley Taylor, senior Vice President.

Better yet, this business model also benefits the landlord. It fills a vacant space temporarily and allows the landlord to assess the retailer’s fit within the community before becoming permanent. A win-win on all fronts.