Pop Up Shops Lop Costs

Pop up retail stores are no longer just for Halloween.

UGG recently opened a men’s-only temporary shoe store in San Francisco. Even actress Jessica Alba has popped in to see what the fuss is about.

UGG and Alba are part of a growing trend. In the UK, it’s one massive trend, netting $3.6 billion of retail turnover in 2013-2014. The United States is now catching on to the benefits.

In addition to small businesses such as holiday shops designed to be seasonal, big brands are testing the waters with experimental ventures. Businesses in between are benefiting, too.

No matter the size, they’re all taking advantage of some big benefits:

Pop up shops are cost effective


UGG is experimenting with a men’s only pop up store in San Francisco.

Rental costs are lower than the financial commitment of a traditional retail space. For example, pop up shops like the ones created for musicians Kanye West, Fall Out Boy, Pearl Jam and the Foo Fighters follow artists around the globe retailing concert merchandise, and are in existence for just a day in some cases.

Michele Chow, founder of Australian-based Dessein Furniture, says, “As a business we have been able to become more financially nimble than we would otherwise be and take the message on the road.”

Great market testers

Pop up shops provide valuable knowledge about your customer base. Celebutante turned fashion designer Nicole Richie is celebrating the success of her third pop up shop. She opened her first House of Harlow store in Dubai and followed with two in Los Angeles—first at The Grove then at The Village at Westfield Topanga.

Richie says, “We learned so much at The Grove about what type of products our clients like best and what experiences they value.”

Alba also maintains a 6-month LA-based pop up shop for her newest endeavor, Honest Beauty.

Buzzworthy pop

If you are a totally new brand or online-only store, a pop up shop is a marketing campaign in itself. It can give your business momentum and create a new customer base with brand awareness.  The excitement of a here-today-gone-tomorrow, “limited time only” store could be a huge revenue generator for your business.

Temporary substitute  

A pop up can also be a temporary solution for short-term problem. Some businesses use them as a substitute for a brick and mortar store being renovated. UK-based One Stop owner Rakhee Patel is utilizing the solution for a matter of weeks.

“The pop up shop allows us to continue serving our customers on a daily basis, keep them informed on how the building work is progressing and ensure that they’re not too disrupted by the changes.”

Do you own a pop up shop, or are you considering opening one? We’d love to hear from you. 

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