Retailers’ pop-up frenzy

Opinion. The views expressed are the author’s own.

Retailers are finding their bottom line scarcely profitable these days. The cost of real estate is increasing annually like all other things. Per square footage costs simply will not do for some retailers as a search for empty unleased properties catch their eye. Taking examples from pop up restaurants, both retailers and landlords share the excitement of using a empty venue for a few days, weeks or months with no lease signature’s required. Simple agreements of temporary usage where a limited renter agrees to leave the property as it was found and pay for this opportunity up front. Good for land lord and also the renter as well. No other entanglements, legalities or demands.

Therefore small new retailers and brands can limited rent a facility, promote it well, and drive its sales for a limited time. Brand exposure is essentially granted as customers are attracted by the firms propaganda in the media, possible entertainment value and the possibility of a celebrity visit during the event. The venues can be as opulent or rustic as the renters wish so long as their fixtures do not pierce the walls of the venue place. This has presented manufacturers with the opportunity to design and make retail fixtures that are free standing, attractively functional and easy to assemble and disassemble/pack.

Jaeger-Le Coultre has opened up pop up stores in Miami with some success, as to other high end brands. Land lords often partner with smaller brands and retailers, so have a high end retailers or brand as a limited partner/customer is a positive experience. In Paris, France the retailers rent is astronomical. Even a Christian Dior, Chanel and Louis Vuitton have opened annually pop ups. Within a few days these small retail environments can experience massive sales and profits for their branding houses. Even second or out of season hand high end articles can be presented to the public.

Some retail giants have opted to use this approach over opening permanent stores to the chagrin of Mall Owners. Within some regions malls do not even exist, while in others retail renters turnover is very static. Mall Owners can use the extra cash presented by these Brands and smaller retailers. A venue/space used even temporarily is better than one sitting empty and unused. Empty buildings and spaces hold a true valued history that can be shared with the community at large. Such experiences have been added to the experiences of pop up events be they restaurants or retail centers. Detroit presents can itself as a up and coming community and retail environment. Pop Up’s are a way of life fore the locals ever since the Big Three Car Makers damaged the City long ago. Closed and abandoned buildings and retail space have come alive through a partnership between the City of Detroit and the Public. Brands such as Puma and Urban Brands have included themselves in this venture.

Urban Brands such as Drakes use pop ups as a profit point, propaganda sphere and place where entertainer giant mingles with their fellow earthlings.

Retail is always changing just as society does, and the expectations of the brands customers evolve with the current state of their finances. Just as Beauty Salons do very well statistically during a recession, so to can pop ups. A pop up can give a brand, small retailer or even an community organization a chance to feel out the community and then respond to the clients requests, demands and expectations. Useful and economical as well.

Elon Musk said of ordinary people and I think retailers alike ” I think it is possible for ordinary people to be extraordinary”. Pop Ups give retailers the chance to work with their customers and attract more while learning about their expectations and how their products meet their customers needs.

Steven Kaszab lives in Bradford, Ont.