by Roxanne Foidonikolas
Introduction
As a small business owner, finding new and innovative ways to get your products into the hands of customers is exciting but also challenging. A pop-up shop is an effective opportunity to engage face-to-face with potential and current customers, while simultaneously boosting sales.
It allows your customers the chance to interact directly with your products and brand, creating a connection that online platforms cannot replicate.
So whether you are an experienced retailer or an ambitious entrepreneur, use this comprehensive guide to help you succeed in your upcoming pop-up shop.
What is a pop-up shop?
A pop-up shop is an ideal opportunity for emerging digital brands to test out a temporary retail space. Also known as “instant retail,” it allows you to meet existing customers in the places where they live and put your brand in front of new customers.
A pop-up shop may look like a regular store, but many brands use it to create a unique and engaging physical shopping experience.
If you’re considering testing a retail presence for your business but are hesitant due to financial risks and the ongoing commitments of a permanent store, a pop-up shop could be the solution for you.
Benefits of a pop-up shop
Creating a personal connection with customers
Technology may make shopping more economical and convenient, but there is no substitute for face-to-face service and a personal shopping experience. A physical store allows you to connect with customers on a human level and build a network of loyal and engaged customers.
Building buzz and awareness
Scarcity is a proven tactic that drives customers to act through their desire to buy exclusive or limited products. A temporary pop-up shop with a set expiration date encourages customers to visit before they miss out.
This approach works particularly well when promoting new products or collections, launching major campaigns, or simply looking to increase overall brand awareness.
Balancing customer acquisition costs
The pandemic forced retailers and their marketing dollars to move online, increasing the cost of acquiring customers through paid search and social media. But as e-commerce flourished, the gap between digital acquisition costs and rental costs narrowed.
High commercial real estate vacancy rates have caused vacancy levels to drop to record lows – 37.5% lower than in 2019 in places like Soho in New York City, according to CBRE. To address the vacancies, property owners relaxed lease terms and eagerly sought to host temporary tenants just to keep their spaces active. According to Reuters, in New York City, the residential real estate market has recovered, but commercial rents are still below pre-pandemic levels.
There is still an opportunity to test the waters in retail and diversify your marketing to include foot traffic alongside web traffic – in a lower-risk, lower-cost environment.
“Soon, actual impressions will be more expensive and valuable than digital impressions,” says Ben Sidell, founder of Neyborly, a platform that matches brands with commercial spaces.
How to set up a pop-up shop in 4 easy steps
Selecting an Event Space
It’s important to find the right location for your pop-up shop. There are a number of factors to consider, and one of the most important is determining what type of space makes the most sense for your event. Here are some common spaces used for pop-up shops:
- An empty store: An empty store is a retail space that is just waiting to be utilized. All you need to do is customize it to fit your brand. Look for vacant stores in the perfect area for you or contact a local real estate agent for assistance.
- A shopping mall or retail complex: Many shopping malls have kiosks and empty storefronts available for rent. The space in the mall may be less expensive than other venues, but it can place you in front of the best kind of foot traffic – customers looking to spend their money.
- Stores
- Substores: Substores are shops set up within an already existing store. Often, merchants rent a part of a store or a small shop as a place to sell their products. Launching a substore markets your business to the shopping traffic in the larger store and helps you save money on rent and decor.
- Exhibition/Event Space: Unlike substores, exhibition or event spaces provide a blank canvas to turn your digital brand into a physical showcased space. These spaces are also prepared for events, unlike some traditional retail environments.
- Mobile: If you don’t want to confine yourself to one location, consider moving and renting a truck or bus to host your mobile pop-up shop. In 2016, the Knapsack tour traveled from Vancouver to Toronto, giving customers across Canada the chance to test its mattress. This opens the door for you to work in different locations and maximize reach – you can set it up at a farmers market, park, or any public place you think your customers will regularly visit.
Identifying Your Pop-Up Shop Location
Once you determine the type of pop-up shop you want, you can start identifying the location. Knowing your store’s goals is another important factor to consider.
If you aim to launch a new line of swimsuits, the ideal location might be tropical areas or near the beach. If you are trying to decide whether to move to physical retail, use current sales data (if you have it) to find out where the majority of your existing customers are located.
Once you have a general area in mind, look into some other factors that help you pinpoint the exact location.
Nearby retailers and events are other important matters to consider. Look at surrounding retailers that either complement what you offer or compete with it. Complementary businesses are good, but you might want to avoid direct competitors.
When well-known shop owners feel threatened by competing stores, you lose the chance for a potential alliance. Introduce yourself and build a relationship with other shop owners in the area. You can gain valuable insights into what drives the shared target audience.
Finally, one of the most important considerations is foot traffic. Is the area or street you’re thinking about busy with passersby? Are there many people passing by the location you’re looking at, and more importantly, are those people your target customers? Ultimately, it’s about who your customers are and where they expect you to show up.
Defining Store Type and Exterior/Interior
Here are some other factors that help you define your location options:
Type of Pop-Up Shop
First and foremost – you need to determine the type of event you’re hosting and understand what makes it particularly appealing to shoppers in a pop-up shop. There are some common types of pop-up shops:
- Press Preview: Typically, a press preview is for local journalists and bloggers who can help spread the word about your store.
- Launch Party: Pop-up shops are great places to hold launch parties, whether it’s the debut of your temporary store or the launch of a new product line. Remember, if you advertise it as a party, you need to deliver. You might consider hiring a DJ, providing food and drinks, and boosting engagement on social media to extend your reach.
- Experience: Draw in visitors with immersive experiences they can’t get anywhere else. Consider the types of workshops, speakers, and individuals that resonate best with your brand.
- Influencer Party: Leverage the audience of influencers in your field by letting them host, coordinate, and be the “star” of the night. Ask them to build anticipation before the event by posting about it on social media, and consider this opportunity as a collaboration that yields significant returns for both parties. They get a unique chance to meet their audience – and their audience becomes yours.
- Event
Care
Although there is a marketing element in all events, there are some events that have a unique position to enhance word-of-mouth marketing. Partnering with a local magazine in your field, for example, can provide you with coverage before, during, and after your pop-up store.
External Factors
Facade: Does the store have pedestrian access and foot traffic? Is the facade large enough to easily manage curbside pickup orders? These are important considerations for pop-up store spaces in the coming months.
Signage: Check if the location you are considering comes with signage and whether you can customize it. Some spaces may have branded entry or facade signage that prevents people from noticing your store. Some spaces may not allow signage at all. Determine what you need and how customers will find your pop-up store.
Condition and Cleanliness: Typically, indoor space owners for pop-up stores ensure that it is clean and in good condition, but the outside may be subject to weather factors. You are likely to be responsible for its cleanliness. Sit there with a broom, bring in potted plants yourself, or invest in a bottle of Windex to remove any residue on the place’s windows.
Parking and Public Transport Access: The easier it is to visit your store, the more customers you will have. On-site parking is optimal but not always realistic. Therefore, create accessibility in any way you can. Research public transport options, check meter rates and times, and look for nearby paid parking.
Internal Factors
Browsing Space / Square Footage: Make sure the space is large enough to allow shoppers to browse comfortably without colliding with others.
Internet Access: Wi-Fi is usually included in most spaces, but check with the rental agent to ensure that fast internet connection is available. This is crucial for your point-of-sale management system, but it’s also important for customers to browse your online sales channels while exploring your physical store. This also means that you can equip your sales representatives with mobile point-of-sale systems to help them instantly pull up customer files and personalize the shopping experience.
Storage Space: Visible inventory that is not displayed can make even the largest spaces feel cluttered. So make sure there is storage space available. Some spaces may not have a back storage room, so check if it’s possible to create a temporary partition using curtains or room dividers. This will make the place look more professional and clean.
Lighting: Setting the right lighting creates the appropriate atmosphere and makes your products stand out. The right lighting for your store ultimately depends on the mood you want to create. If your brand is more modern, brighter lighting may work better. Soft lighting complements brands with classic aesthetics. Check if the lights are connected to dimmer switches or if there are alternative portable lights available.
Anti-Theft Features: According to the National Retail Federation’s National Security Survey, 37% of retail shrinkage is due to shoplifting and crime. Look for a space that has adequate anti-theft measures. Surveillance cameras and alarm systems are great tools to deter theft. If a retail space does not have cameras, see if previous pop-up store tenants used other tactics.
Display Space: Every space is different, so ensure that the place you are considering is equipped with everything you need to display your products or materials.
System
Speakers: Music is important for setting the mood in your store. If the place has a sound system, that’s great. If not, make sure to bring your Bluetooth speakers and test the sound before opening.
Booking Your Pop-Up Shop Space
You can reach out directly to real estate agents to see if they have any spaces for pop-up shops. There are also many online databases that you can search to book properties yourself. Here are some websites we recommend:
- We Are Pop Up
- Neyborly
- Appear Here
- Bulletin
- Pop Up Shops
- Uppercase
- Storefront
- Peerspace
- Popertee (UK)
Tips for Closing the Deal on Your Pop-Up Shop Space
There are many legal documents that pop-up shop operators need to be aware of.
Source: https://www.shopify.com/retail/119919875-how-to-create-a-successful-pop-up-shop-video-series
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