The benefits and pitfalls of contemporary pop-up shops

Abstract

As e-commerce growth continues to surpass that of brick-and-mortar retail, temporary retail spaces, also known as pop-up shops, are becoming an important promotional strategy, especially for online retailers and service providers. Success in today’s retail environment means being able to create and maintain brand communities, to generate instant and measurable hype, and to deliver personalized consumer experiences—all of which can be readily achieved through a strategically placed physical business presence. In this study, a survey of retailing organizations worldwide reveals that among those that had implemented at least one pop-up shop, more than 80% considered it a success. The results also show that the primary reasons for activating pop-up shops were to create connections with current and potential customers, to increase brand awareness, to introduce a new product or brand to the marketplace, and to stage a new product or brand. While the respondents deemed revenue generated at pop-up shops important, they considered improving market visibility (e.g., through social media, website traffic, or media coverage) a more significant objective. Given the economic potential of pop-up shops, this research provides retailing organizations with guiding principles for developing and operating successful pop-up shops in the current marketplace.