Prospering with pop-up stores

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During fashion week in London’s Soho district this past February, Lego opened a pop-up store with nothing in it. Well, nothing except for a pedestal displaying a QR code. When visitors scanned the “Snapcode,” linked to Snapchat, their phones displayed an augmented reality-enabled fashion boutique where they could interact with arcade games, a DJ and a bouncer. They also could view an exclusive limited-edition apparel collection, available for purchase through the social media site’s “Shop Now” feature.

Pop-up concepts like this are becoming essential in retail, where consumers’ insatiable desire for the new and different requires constant testing and experimentation. Pop-ups lend an air of exclusivity, an of-the-moment excitement and Instagram worthiness that generates top-of-mind brand buzz in crowded markets. Their success has driven the pop-up industry to approximately $10 billion in sales, according to PopUp Republic.

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Retailers create pop-ups for a variety of reasons, and their run times vary from just a few days to months or more. Common purposes include the desire to:

  • Explore potential new markets; Goop recently opened a London pop-up for this purpose.
  • Test new products/concepts/services and experiment, such as Wrangler trying out a new global high-end line in London.
  • Try out brick-and-mortar, for e-Commerce-only retailers.
  • Attract a new customer base, such as House of Fraser’s recent pop-up.
  • Promote the brand.
  • Engage directly with customers, especially for brands that sell primarily through retailers. Superdruginvited social media influencers to select the products for its ethical makeup-only pop-up.
  • Study and learn from customers.
  • Tie in to holidays or events, such as Waterstones’ International Woman’s Day pop-up featuring only female authors.
  • Take advantage of an opportunistic lease in a prime location.
  • Serve as a click-and-collect/BOPIS location, as Zara did at Westfield Stratford in east London.

Some pop-ups run their course and close down, but retailers have also adopted pop-up only business models — generating excitement by temporarily setting up shop at locations suggested by their social media following, for example — or moved on from the pop-up concept to full brick-and-mortar sites, as Amazon is now doing in the U.S.

Cloud-based platforms are well-suited for retailers operating pop-ups because they give the new location instant access to the software needed to run the store without anyone needing to install and configure devices on site.

“Pop-ups are a physical media channel much like the Internet, TV and radio, and can be used as a tool to tell a brand’s story,” said Leon Goldwater, Chief Executive Officer of We Are Pop Up, a firm that helps businesses book pop-up spaces and ShopShares in Europe.

“Many brands and retailers have realised the impact of using physical locations as experiential concepts and that they are essential to activate and keep customers engaged. The pop-up needs to be seen as part of the brand’s marketing strategy and as a great way to test out new concepts, ideas and formats.”

Written by: Andrew Gaffney

FÖMO Store, the physical lifestyle magazine debuts in Gothenburg

The new innovative retail concept has debuted in the Swedish city of Gothenburg earlier this year. FÖMO, short for “fear of missing out”, a new shopping experience in Mölndal Galleria, is as a physical lifestyle magazine, which provides a platform for brands to use it as a gateway into Sweden.

Similar to a micro-department store, it features anything and everything from clothing, accessories, footwear, jewellery, home decor, art and handcrafted goods. The difference, however, is that it’s not a typical store, it is anything but. It is an event focused destination for brand activation and for entrepreneurs to use the space to create a different type of experience. Its main focus is the ever-changing offer, with brands having a limited time to showcase their products or service, meaning that every time customers visit the store they will see, smell or taste something new.

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‘The FÖMO concept can be considered the WeWork of retail. It offers convenience and a wow factor by providing limited editions and space as a service,” says Ilona Taillade, CEO of BrandSpots, and founder of the FÖMO concept.

So what does it mean for retailers?
FÖMO is breaking down the barriers for international brands to enter a new market and provides Retail As A Service (RAAS). It is practically risk-free for the retailer and provides the environment to test and launch new products or services. It is a place where retailers can engage with the customer to showcase and showroom their products. Brands are able to book space in the store through the We Are Pop Up online platform.

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“There are many international brands that want to enter the Swedish market, but don’t want to make a half a million investment without testing the waters. With FÖMO it’s a flagship pop-up store where brands get the chance to test the market without the risks,” says Ilona Taillade, founder of FÖMO.

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‘FOMO want to enrich the shopping experience in a way that feels exciting and innovative. Its urban location in Gothenburg and modern design makes Mölndal Galleria a suitable setting for brands to maximise brand awareness and activation,” says Magnus Bergman, Property Development Director at Citycon Mölndal Galleria.

Want to join FÖMO? Contact the FÖMO team!

Register your interest here