Opening your first physical store is a pivotal coming-of-age moment for a retailer, especially in the age of Start an online business. Many entrepreneurs are enjoying great success in e‑commerce and building emerging brands. But opening and running a retail store is a whole different ball game.
It is a tipping point that the vast majority must overcome and is crucial to getting it right. However, the rising costs of running a business, especially with a physical location, are making this leap more difficult than ever.
Pop-up stores can fill this gap. They allow retailers to experiment with in-store operations and experiences without the burden of fixed leases and overhead costs.
Retailers can experiment with their location and design, as well as experiences that might appeal to customers, while testing the logistics of store operations and the physical point of sale. This is an invaluable insight for business owners who have sold products exclusively online and can help them learn how to make physical retail work for them.
Pop-up stores have their place on the main street
A lot has already been said about this “Death” of the main street after 17,500 Chain stores were closed at the start of the pandemic, but that shouldn’t stop retailers from opening stores.
In fact, physical shopping is becoming increasingly important again as a touchpoint for new brands and products Shopify data The study found that nine in ten (89%) shoppers are just as likely or more likely to discover products while browsing in a store today than they were a year ago.
If you think a pop-up store could be a worthwhile investment for your business, here are some considerations and recommendations to help you make it a success.
What type of pop-up store is best for your business?
Not all pop-up stores are the same. There are different types, so it’s important to figure out which one is best for your business.
You may want to tie your pop-up to a season. In this case, seasonal pop-up shops can leverage seasonal characteristics to increase traffic and sales. The most common type is the Christmas pop-up shop. These take advantage of the peak shopping season, which is crucial for some companies one third of their annual turnover.
Holidays like Easter, Halloween, and Christmas can be an open target for seasonal pop-ups because of the thoughtful decorations and treats that accompany these occasions.
Another popular option is experimental pop-ups, which help brands test new product launches, markets, merchandising or retail experiences. Clothing brand Blakely used a popup launched its Life & Style collection, creating over 300 gift bags for customers and attracting hundreds of consumers in the process.
Experimental pop-ups provide a slightly different concept than a company’s main offering and provide the opportunity to collect valuable data, such as consumer interest in a new product or even brand identity.
Finally there is Pop-in stores. These are spaces within larger stores that small businesses can rent. Pop-in stores can be particularly valuable because they are typically located in physical spaces purpose-built for retail and where consumers already have a higher purchase intent.
What should you consider before opening a pop-up store?
If you’re considering expanding your eCommerce business into brick-and-mortar stores, introducing a new product line, or targeting a new target market, a pop-up shop may be the best way to conduct your experiment.
Although a pop-up store can be a valuable way to familiarize yourself with the nuances and operations of a high street presence, it is important to have a full understanding of what is involved before committing to long-term arrangements lets in.
An important impact to consider is the rental costs and additional utilities that you will have to pay either in advance or during store opening hours. Therefore, it is important to research different locations to determine the best option based on factors such as customer traffic, cost, and whether there are other similar businesses nearby that could attract more customers or even be competitors.
It’s also important to plan a store layout that optimizes the customer experience while taking into account the characteristics of the space, such as windows and countertops, to ensure displays and signage are maximized.
How to make your pop-up store a success
In the run-up to and throughout the operation of the pop-up store, it is of utmost importance to increase awareness in order to encourage customers to visit. A strong marketing strategy is therefore crucial for success.
This marketing strategy should start with you existing customer base onlineas they already are Advocate for your brand. If you don’t have one set up already, create a newsletter to distribute to these customers and inform them about the store and the offers available. It may also make sense to further entice them with offers and discounts that are only available in store.
Social media is also one of the most powerful tools for driving interest and traffic to a business. Sharing behind-the-scenes content and offers and encouraging consumers to post about your business can be invaluable.
Combined with collaboration with influencers, all of these efforts can help drive results. Influencers bring their own engaged audience and can potentially attract more customers to the pop-up by connecting with your brand. It may be best to target micro-influencers who can get up to 60% more engagement than larger influencers and can therefore be more cost-effective.
Another way to attract consumers to your pop-up store is to partner with local publications that list events or are relevant to your customer base to raise awareness. This helps you connect with the local community in which you operate.
Finally, a good point of sale (POS) system is the key to keeping your pop-up store running smoothly. By investing in a solution that can sync your inventory, payments and customer data, you could gain access to live information and insights to manage the business more effectively. This allows you to evaluate the success of your store using data on product sales, peak activity, and customer spending.
You will gain important insights about your pop-up from the process Analysis of your processesTherefore, retailers need to collect as much data as possible.
Why should you consider a pop-up store?
Pop-up shops offer online brands a cost-effective first step to establishing a physical presence. Although they are temporary, they allow companies to explore how in-store sales work and test the most effective mechanisms.
Equally important, they can help identify potential sources of error without incurring the same risk that long-term storage might entail.
Online will always remain an important sales channel, but when combined with a physical retail space there is an opportunity to create a unified online and offline storefront that creates lasting connections with customers on the high street.
And as inflation in the UK is slowing according to the latest evidence ONS numbersAs consumer purchasing power potentially increases, startup retailers have a great opportunity to reach customers as fully connected omnichannel brands.
Deann Evans’ career spans more than two decades in leadership roles in e‑commerce and SaaS. She currently leads the European expansion of Shopify, the global commerce platform that powers millions of modern, high-growth brands like Gymshark and Huel. This role allows Evans to support merchants through Shopify’s extensive partners and developer community.
