What is pop-up retail?
Sometimes called a pop-up shop, pop-up retail is a retail store that businesses temporarily establish to celebrate a specific event, holiday, product release, or popular fad. They can be incredibly beneficial for direct-to-consumer e-commerce businesses looking to expand their target market.
Pop-up retail works well for businesses across many industries, and it comes in many different forms.
- Recently abandoned brick-and-mortar locations
- Temporary tents in markets
- Tables or sections of an existing, active store owned by another business
- Rental spaces
- Art galleries
- Owned or rented vehicles
- Temporary outdoor or indoor restaurants
- Unique and exciting spaces, like boats or even underwater locations
Some businesses implement retail management systems to help with the day-to-day operation and organization of their pop-up retail locations. These systems help retailers with shift schedules, finances, overall sales, inventory tracking and restocking, and time frames for pop-up shops.
Types of pop-up retail
Though most popular within the fashion industry, pop-up shops are valid growth tactics for any business, and there are many types to choose from.
- Permanent pop-up shops. It sounds counterintuitive, but some successful pop-up shops become permanent installments.
- Seasonal pop-up shops. Some businesses only operate seasonally, so they only need physical locations during those seasons, like Spirit Halloween in October or fireworks booths before New Year’s.
- Experimental and immersive experiences. Interactive displays or virtual reality experiences are well-liked examples.
- Marketing buzz events. If businesses have a product launch or an extensive rebrand coming up, pop-up shops generate excitement.
- Virtual pop-up shops. Digital shops can be just as engaging as in-person ones. If businesses want to keep the small feel of a pop-up shop but open it up to a larger audience, virtual pop-up retail is one way to do it.
How to set up pop-up retail shops
Setting up pop-up retail locations is similar to opening a new, permanent brick-and-mortar location; the time frame is shorter. These steps prepare the new pop-up shop for success.
- Location scouting. Depending on the type of pop-up shop desired, this may take no time (like virtual shops or tents), or it may take a few months (like seasonal or immersive pop-ups).
- Match sales and marketing goals to the product sold and the overall theme. Businesses may need to adjust their plans based on the location chosen.
- Design marketing materials and booth or shop designs. This could look like full booth designs, flyers, handouts, or billboards.
- Generate online buzz. The success of a pop-up retail location relies on total foot traffic and sales made. By promoting the shop ahead of time, businesses create local anticipation.
- Launch the pop-up shop and continue to iterate. Depending on the shop's performance, it may be necessary to shift goals and promotion plans.
Benefits of pop-up retail
Due to their mobility and flexibility, pop-up retail provides several benefits to the businesses that use them.
- They’re a great way to test a new idea or business concept.
- Businesses can try out new retail locations with minimal risk.
- They come with relatively low risk and low commitment.
- Companies are encouraged to take creative risks.
- Unlikely audiences discover new businesses.
- Limited time and single-print products may sell better.
- Customers feel like a part of an exclusive group.
- In-person experiences are always in demand.
- Extra or excess stock can be sold at a heavy discount.
Pop-up retail best practices
When setting up and running pop-up retail locations, these tips and best practices ensure popularity and success.
- Put a working mobile point-of-sale (POS) in place, and have backups in mind if the POS goes down. A mobile POS allows sales associates to walk around a pop-up space and assist customers. A backup plan ensures sales can still be made, even if customers are charged later or fees are collected through a payment-sharing service.
- Make a bold and memorable shop design. Unique color combinations and bold design choices not only make a pop-up shop more popular but also make it easier to find. Plus, shoppers feel inspired to share pictures on social media, expanding the shop’s reach.
- Don’t shy away from interactivity. Even something as simple as free samples or consultations can make a huge difference and add to the “exclusive” feel.
- Research and invite influencers and loyal customers to promote and visit the pop-up location. Pop-up shop retailers should incentivize influencers for their time. To make things more exclusive, shop owners can make the event invite-only and then open up an online shop listing limited items.
- Give back to the community or a charitable cause Modern consumers are passionate about giving back, and they want to spend money at businesses that support their environment.
Learn more about retail management systems and how they can help ensure your pop-up shop is successful.
