Customers are now familiar with the experience of a pop-up retail event. Whether occupying the central walkway of their high street boulevard or appearing inside a familiar retail space, limited-time and celebratory retail experiences have made their mark on the shoppers’ landscape, to the extent that not only have customers become accustomed to their presence but have begun to eagerly anticipate them too.
There are a number of reasons why pop-up retail experiences have taken such a hold on our culture. Even now, at the highest point of their popularity, experts are largely predicting the continued presence, even predicting growth in certain cases, with a number of retailers moving toward a more regular model of pop-up retail. If, however, you remain uncertain about their benefits, then we’ve got the evidence and reasoning to hopefully persuade you otherwise.
Low Cost, High Reward
Perhaps the most appealing aspect of a pop-up retail experience is the potential for low cost and high reward. Pop-ups forego the hefty overheads of permanent retail and allow brands to be more flexible with their presence, offering a wider variety of choices for dates and spaces within which to establish their experience. This allows retailers to better balance their costs, choosing an affordable pop-up option that will most likely benefit their returns, whether that is through audience reach or immediate sales.
Testing The Waters
Retail involves risk, especially when a brand is looking to establish itself within a new area. There is a substantial amount of initial and ongoing costs to consider when opening a store. Pop-up retail, however, affords brands the opportunity to sample a new location, interacting with customers during a set period and at a precise location. This better informs brands as to how a more permanent concept might perform, revealing a potentially lucrative endeavour or preventing a mistake from being made.
Occasionally, retailers will want to experiment with new operations. This could be as simple as wanting to refit a store’s retail furniture, from shelves to stand offs, or as significant as an entire brand redesign. Doing so in and across permanent locations is extremely costly and often necessitates an upfront commitment to the change, regardless of any developing hesitations.
Pop-up retail enables retail brands to trial their new store and brand designs without the fear of ongoing commitment. This not only benefits a store’s risk-reward considerations but also enables the freedom to be bolder with brand and operational changes that, in turn, could lead to new retail discoveries.
There are certain times and in certain locations when a brand’s presence would be ideal. During Valentine’s Day, for example, a number of chocolatiers will seek to expand their retail reach, ensuring that everyone who might want to buy chocolates is aware of their products. Pop-up retail events are a fantastic way to consider this possibility. Brands prepared with pop-up equipment will be able to seize the opportunities that arise for their brands, attending various events that might potentially allow them to increase their customer base.
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Infographic provided by Riveron – accounting advisory professionals