J.D. Associates Retail POS Solutions Blog

Pop-Up Stores In Retail

  

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Question: What do you think of “pop-up” stores?

Although the term pop-up stores is relatively recent, the concept has been around for years. A pop-up store happens when a retailer decides to open a temporary location, usually during the holiday season, for the purpose of increasing their sales.

Hickory Farms, for one, has been opening pop-ups for years. There are advantages and disadvantages that should be considered before deciding to open a pop-up store.

ADVANTAGES:

• No long-term commitment: These are usually tenant at will situations requiring no more than a month at a time commitment.

• Cheap rent: Since there are plenty of vacant retail spaces, landlords feel that getting something for the space is better than getting nothing.
• Move more merchandise: An additional outlet gives merchants the opportunity to move more merchandise than they would normally have room for at their permanent locations.
• Negotiate “end of the season” consignment deals with suppliers: Many suppliers are desperate to move merchandise at the end of the season and will negotiate very attractive deals.
• Give your brand more visibility: More potential customers will become aware of your permanent location.

DISADVANTAGES: 

• Finding and training competent staff: Competent temps can be hard to find and supervision can become an issue.
• Keeping shrinkage to a minimum: Security may be in place for the permanent store but will need to be addressed at the pop-up.
• Technology investment: Point of sale systems will be a consideration and expense.
• Outfitting the store: Although outfitting a pop-up is minimal, there would still need to some fixturing for merchandise as well as a point of sale area for transactions to be completed.
• Image: The image or brand of the “pop-up” should be consistent with the permanent store or the branding of the permanent store can be irreparably damaged.