The pop-up retail sector now generates £2.3 billion for the UK economy, according to Britain’s Pop-Up Retail Economy 2015, the second annual report from the Centre for Economics and Business Research (Cebr) and EE. Pop-ups now account for 0.76% of total retail turnover in the UK, up from 0.6 % the year before – an increase of more than £200m in sales.
The sector is growing fast, with total turnover increasing by 12.3% compared to 8.4% in the last year. This is caused by a rise in the number of visitors with 44% having visited a pop-up in the last 12 months, and an £8 increase in the average annual spend to approximately £124 per person.
Around 26,200 people across the UK are employed by some 10,500 pop-up shops, with numerous successful ventures going on to become established retailers. In turn this is supporting the growing number of small retail businesses which has increased by 3.2% between 2013 and 2014.
8% of retailers and food and accommodation service providers report having launched a pop-up to complement their permanent location, while 10% plan to open one in the next five years.
The growth of the sector is also acting as a strong catalyst for the regeneration of flagging high streets – 49% of people surveyed believe that pop-ups were a good way to revive the high street.
“Pop-up retail is just getting started. This is the beginning of a trend that will reshape how we use property in cities around the world. 20% of shopping centres will be let on short-term contracts. Most restaurants will start as pop-ups. We’ll see huge cross-border movement with brands entering new markets at extremely low costs.
The biggest winners are consumers – which is basically everyone in the world.”
– Nicholas Russell, CEO, We Are Pop Up
The pop-up retail sector continues to evolve from strength to strength, at growth rates far higher than those of traditional retail outlets. The industry is helping numerous businesses develop into established companies – with permanent shops, online platforms or even further pop-ups. Blurring the line between traditional bricks and mortar and a new generation of creative retail, pop-ups are bringing new ideas to life every day, giving an inclination towards the temporary a much more permanent role in the retail landscape.
Read the report here.
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