Harnessing the Power of Pop-Up Shops
Pop-up stores are a retail trend that shows no sign of slowing down.
The ability to create a brick-and-mortar presence without many of the hassles that come with establishing and maintaining a permanent physical location has become an increasingly attractive option in recent years. The pop-up store concept has transformed into an estimated $50 billion industry — fostering new partnerships, experiential marketing opportunities and a unique way for retail brands to engage with their customers.
From established global brands to independent e-commerce merchants, retailers of all shapes and sizes are utilizing pop-ups as a one-of-a-kind way to experiment within the physical retail environment. High-end luxury brand Louis Vuitton recently generated lots of buzz by promoting its collaboration with skateboarding shop and clothing brand Supreme through the launch of a series of global pop-up store locations.
Retail giants like Nordstrom and JC Penney are also benefiting from the trend via in-store pop-up installations. By lending a portion of their storefront to a merchant like Sephora or Gwenyth Paltrow's lifestyle brand Goop, these retailers have the opportunity to drive in-store traffic while also attracting and engaging new customers.
It’s no wonder a wide range of merchants are looking to capitalize on pop-up shops. Not only do these temporary store concepts offer flexibility but they typically cost as much as 80% and come with far less risk.
Although short-term retail footprints are becoming a mainstay across the industry, that doesn’t mean embarking on the pop-up store concept – and making it successful – comes easy. To make the most of this temporary, limited edition retail offering, there are a few important considerations to keep in mind:
• Focus on Shopper Needs. The pop-up retail environment not only offers flexibility to merchants, but it presents the opportunity to revamp the shopping journey for customers. Part of establishing brand awareness and engaging with shoppers through a pop-up shop is making sure shoppers walk away with an experience they won’t soon forget.
Offering personalized promotions or equipping employees with tablets for looking up inventory, placing orders or even making payments will help merchants enhance their pop-up store offering. Adjusting marketing techniques and customer service tactics can also go a long way in enhancing the retail experience within pop-up environments.
• Keep Payments Simple. The size and format of pop-up shops can vary drastically depending on a variety of factors, including a merchant’s budget and design preferences. In many cases, having a traditional point-of-sale (POS) setup may not provide the flexibility needed to operate in a pop-up space. Rather than trying to incorporate traditional cash registers or checkout lines, many merchants are using pop-up locations as a way to experiment with modern payment options such as mobile wallets and tablet-based POS solutions.
• Get Experimental. Pop-up stores serve as a great way for merchants to test out new products or concepts. Whether a brand is looking to promote a new collection or showcase a unique collaboration, pop-ups create a sense of “limited time only” urgency that attracts and retains the attention of customers. By experimenting with new offerings within a pop-up, merchants also have the opportunity to get on-the-ground feedback and suggestions before taking on the risk of pushing out new products to a larger market.
The exclusive, unexpected and limited nature of pop-ups can offer merchants an alternative way to thrive in the rapidly changing retail landscape. Capitalizing on the trend requires finding the right pop-up model and strategizing to attract the right customers, all while delivering on the unique experience shoppers have come to expect.
Chris Francis is VP of market development at Worldpay US, a global payments provider for all channels: in-store, online and via mobile.