5 Reasons to Set Up a Pop-Up Shop
Setting up a pop-up shop gives brands an exciting new way to interact with their customers in person. Before the pandemic, these shops were growing in the retail space. Customers like the idea of testing out your products before they buy, and many still prefer to shop in person.
As the pandemic continues to wind down and retailers begin to fully open across the U.S. a pop-up shop can put your brand in front of customers in a way that will attract and delight. Read on to see how a pop-up shop can complement your other retail channels and gain the intended results in terms of better customer experience and higher sales volume.
1. Engage Your Customers in Person
The pandemic drove more customers online, which brought a boom to e-commerce, but as mask and store traffic restrictions are being lifted, customers are ready to get back into their normal routines. In 2021, Forbes reported that 46% of people prefer shopping in person.
A pop-up shop lets you connect with these customers who might find your product online but prefer an in-person experience. Promoting your pop-up shop is a fun way to generate interest in your brand and create excitement for loyal customers who want to see new products and try them out.
2. Create an Exclusive Experience
According to CNBC, one reason that pop-up shops have steadily increased in popularity is because they offer the feeling of being exclusive. Some large brands showcase limited-edition merchandise in pop-up shops, which creates excitement and capitalizes on a customer’s FOMO, or “fear of missing out.”
If you’re launching a limited product line or rolling out seasonal merchandise, a pop-up shop can help amplify its temporary nature. Because pop-up shops are smaller and customizable, you can switch up your displays and merchandise for new rollouts, seasonal sales, and other special events.
3. Customer Education
Opening a pop-up shop with highly skilled salespeople gives your customers a personalized shopping experience that isn’t available online. Your brand representatives can highlight complicated features of new products to early adopters, and they can work with existing customers who want to upgrade older merchandise.
4. Attract New Customers
With many retailers shifting to online shopping, the cost of digital advertising is rising. Adage estimates that the cost per impression for social media will continue rising throughout 2021 as online shopping grows in popularity.
A new pop-up shop lets brands gain new customers with increased foot traffic and omnichannel advertising. Announcing your pop-up shop is an exciting topic for organic social media engagement. Encourage your in-person customers to share your shop on their feeds and drive traffic to your pop-up and your website.
5. Test the Viability of a New Storefront
For brands that have built a successful e-commerce business, a pop-up shop can serve as a logical next step before opening a physical location. In 2019, Business Insider polled global retail companies on a variety of industry topics, and 44% of their respondents indicated that they had spent less than $5,000 on their pop-up shop. Although you might not be able to set up a pop-up shop for less than $5,000, testing a temporary location can help brands gauge whether a more permanent retail location would do well.
What does it take to establish a storefront?
The Right Location
Pop-up shops can be set up in many locations, including existing stores. Set your goals for the shop and consider:
• Neighboring store
• Neighborhood events
• Foot traffic
A Network of Retail Service Providers
• Partners to help with technology, operations, HR, and logistics
• Back-office infrastructure for smooth customer service
• Real estate partners
• Kiosk, display, marketing, fixture, and merchandising design that aligns with your brand and blends with decor
Retailer Technology Infrastructure
• A point-of-sale system that allows for mobile and onsite transactions
• Frictionless payment capabilities that connect with mobile banking
• Integrated inventory management and sales tracking system
Flexible Human Capital Management
• Remain compliant with ever-changing employment rules and regulations
• Strategy to attract and retain high-quality personnel
• Instructional materials that make training easy yet effective
• Variable staffing and compensation that meets current expectations
Process and Logistics Solutions
• GIS analytics to help you evaluate locations
• Real-time inventory management
• Inventory and warehouse fulfillment and replenishment
• Financial and forecasting analysis and management
• Loss prevention strategies and training
• Return policy and training
Operational Structure and Processes
• Assessment and management of location performance
• Knowledge of retail operations best practices
• Reporting and analytics data for the store and associated activities