Pop-Up Potential: Why Landlords should take noticeDigital Manager
What began as a Christmas phenomenon or an avenue explored solely by the average charity store has grown into what is now considered to be an innovative and sustainable business model.
Pop-up retail or flash retailing as it is also known is gaining recognition worldwide as, not only a versatile option for retailers who perhaps want to dip their toes in the water before investing in bricks and mortar, but as a sustainable solution in addressing the issue of store vacancies.
There is no doubt the perception of pop-ups has changed. Now associated with niche and stylish brands covering food, fashion and lifestyle among others, pop-ups are providing consumers with an exciting alternative to the typical shopping experience of a high street or mall. They exude energy and a genuine sense of community.
None more so than BoxPark; a collaboration of temporary stores offering diverse fashion, lifestyle and cuisine from all over the world. Although BoxPark has been established for several years, its tenants are ever-changing to respond to customer wants and needs and thus it recognises the importance of maintaining vibrancy and refreshment.
Pop-ups would seem a perfect fit for asset managers looking to occupy empty stores. Vacancy rates are higher than they’ve been in a decade and pop-ups do away with the lengthy process by which long-term leases come to fruition. In short, empty stores cost their owners money and the delays are simply a wasted opportunity. Surely it’s better to accumulate some revenue than none at all? Pop-ups may represent a reduced income, but it’s an income nonetheless.
There’s also nothing to say that any short-term interest in units can’t be converted into long-term. Short-term licenses, and the pop-up phenomenon can therefore be seen as a feeder. An incubator. Their attraction and variety undoubtedly drives footfall, and that can only make for happy customers and asset managers alike.
Richard Ingoldby, Digital Executive