From established global brands to independent e-commerce merchants, retailers everywhere are taking advantage of the pop-up shop trend.
What is a pop-up shop?
Pop-up shops are temporary retail establishments that emerge for a few hours, days or weeks, to test a particular retail location, generate buzz, and engage with local customers. Not only do these pop-up stores offer retail brands the flexibility to test local markets, but they typically cost as much as 80% less and come with far less risk.
But if you’re thinking about hosting your own pop-up shop, there are a few important considerations to keep in mind if you want to be successful:
1. 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. Offering personalized promotions or equipping employees with tablets for placing orders or making payments will help enhance the customer experience, and make your shop unique. 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.
2. Keep Payments Simple.
The spontaneity of a pop-up shop creates a sense of excitement and urgency among buyers, driving the impulse to buy. In many cases, having a traditional point-of-sale (POS) setup with cash registers and checkout lines, may not provide the flexibility needed to operate at a pace that satisfies consumer demand in a pop-up space. Rather than trying to incorporate traditional, 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.
3. 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.
4. Choose the Right Location.
Unless your event is online, you’ll need to secure a location to host it. And with very little time in the spotlight, pop-ups must be located in an area that will attract the right attention from targeted shoppers. Your location should have character, fitting your own branding and the theme of your event. By collecting and analyzing shopper data from online purchases, retailers can pinpoint the best location to open a pop-up.
5. Strong Marketing is a Must.
Pop-up shops represent a wonderful opportunity for generating social media buzz, interacting with customers on a personal level, and getting people excited. The key to hosting a successful pop-up is properly promoting it with the right marketing techniques in the days leading up to the event. Once the shop launches, the goal is to have customers and fans publishing their own pictures, videos, reviews, etc. of your shop on social media.
Pop-up shops are a great way for retailers to engage with their customers and grow their business, and benefit both customers and retailers, alike. Their massive impact has transformed into an estimated $50 billion industry! But merchants must find the right pop-up model and strategy, all while delivering a unique experience customers love if they want to be successful.