Food has an expiration date, films have limited engagements, and vacation hot spots have seasonal restrictions, but this year’s latest recession trend of pop-up stores seems to put retail in the same category of here today gone tomorrow. Pop-up stores are literally as the name suggests, temporary stores set up by retailers either in unconventional locations or in a vacant established retail space. Retailers are catering to this new concept off mass-clusivity and using impermanence as a marketing tool. These fleeting stores are used by retailers to introduce themselves into new markets where they have not yet established a real estate presence or to generate publicity for an already accepted brand through a new medium. A driving force behind this trend lies in increasing retail vacancies. For landlords, the temporary outposts offer much needed income when a space is languishing between leases. Opportunistic leasing in today's marketplace offers maximum return for a limited investment. Mainstream retailers such as Target, The Limited, Gucci and Brooks Brothers have been pioneering the pop-up retail front since 2004. Target has no brick and motor presences in Manhattan proper to date, but time after time, has set up temporary outposts throughout the city selling their well sought after merchandise. Often these stores open in tandem with industry events such as Fashion Week and/or to celebrate the launch of limited designer collections. Moreover, pop-ups are proving to be beneficial opportunities for young designers (whose only reach to customers is through e-commerce and wholesale) to play hardball with the 5th Ave big shots. New York Magazine recently examined the economics of guerrilla retailing to see if this new trend could turn a profit for an up and coming designer. Using Lyz Olko’s line, Obesity and Speed, as a case study, they found that a lifespan of 60 days earned this rising designer $11,050 in the bank. Expenses for such stores include: set-up, marketing, opening party (optional), garment production, transporting merchandise, and staffing. Cost can be kept to a minimum as most pop-ups are taking a barebones approach to décor and focusing energy on the merchandise mix. This “movement of the moment” has opened the door for online operations such as BlueFly.com to step out of their comfort zone and gain some real-world experience. Ebay used popup’s to combat their flea market image and showoff a more upscale and innovative image.
Always on trend at Kenneth Park Architects, in addition to standard build-outs we have been working with clients such as MAC, BCBG, and Adidas from TX to CA to VA to NC to create temporary spaces that are consistent in design with their current stores. These shops provide the opportunity to offer "hot" trend items, seasonal products, and to test new products in the marketplace. Your favorite retailers are becoming more accessible and are giving you the opportunity to shop in a new light. This intentionally temporary style of retailing is sure to make a permanent dent on today’s retailing landscape.
