Pop-Up Stores: Don't Burst Your Pop-Up's Bubble Before it Grows
A growing number of cross-channel retailers are turning to pop-up stores to launch products and concepts, generate buzz, build brand awareness, and dip their toes in the water of new locations. But something that might begin with a lightbulb-over-the-head scenario takes a lot more to put into action than the simple act of turning on a light switch, displaying an open sign and unlocking a door.
Just because a business is designed to be of a temporary nature doesn't mean any less work needs to be involved in the ramp-up process than what goes into starting a more traditional storefront. The old adage rings true: The more you put in, the more you get out.
Here are a few important factors that you should consider before opening a pop-up store:
Plan ahead. Set up a solid business plan months before your projected opening date. This shouldn't be a fly-by-the-seat-of-your-pants operation. If you choose to go that route, it'll show. The more prepared you are, the easier it'll be to face the challenges and annoyances that come with pop-up stores. Planning several months ahead affords you an opportunity to save considerable time and money by creating a budget and identifying your business objectives long before you enter into a temporary lease arrangement.
Location, location, location. Finding the right spot at the right time is crucial to your success. Walk around the neighborhood of any location you're considering at different times of the day in order to get a take on the tone and visibility. Keep track of foot and vehicle traffic counts and alert yourself to any potential safety issues. Talk to area store owners to find out if there are complementary businesses that you could tap for co-marketing promotions. Don't settle for the first locale that looks good. Explore all options and be sure to complete your due diligence to see if the area's demographics match your target audience. That alone provides an opportunity for your intended customer base to more easily find you — and could promote foot traffic.
Learn leasing strategy. Make sure your business objective includes an adequate time frame. How long a pop-up store stays open depends on those business objectives and, of course, your budgetary constraints (which should have been created long before entering into any lease discussions). The average life span of a pop-up store is about three months. Making sure that you give yourself enough time — at least three weeks to four weeks, and sometimes longer — to see results is an important factor to consider prior to entering into lease negotiations. Also consider the possibility of extending a lease if all goes well.
Money matters. Determine your costs. Estimate, don't guesstimate. Be aware that the process of opening a pop-up store is often faster compared to a more traditional storefront. Simple tasks like setting up phone lines and switching on the electricity in a timely fashion might cost more money up front. Be sure you factor these excess costs into your budget. You'll also want to maintain an emergency reserve for unanticipated expenses.
Brand yourself. Think about what attracts you to certain stores and what keeps you coming back. Have a vision of the image you want to project, then market that to your target audience. Consider all the factors that go into setting up your store, from what products and how much of them you'll be displaying to lighting, décor and, possibly, theme. Make it your own. It's crucial to create an inviting atmosphere that will make your brand sparkle as well as leave a lasting impression on consumers after the store is closed.
Landlord 101. Now that the pop-up concept is becoming more familiar to landlords, their comfort factor with it is rising. It's possible you'll be lucky enough to find a landlord who's encountered the situation before. Be sure to check if your prospective landlord has ever done temporary lease arrangements with other tenants. Ask for references, if available. Is he/she readily accessible? Is he/she willing to work with you to improve the space? These are key questions that need to be answered during lease negotiations, and will weigh heavily in ensuring the success of your pop-up store. Working with an agreeable landlord can be one less headache for you to deal with. It never hurts to establish congenial relationships with people you might do business with again in the future.
Do your homework. Have everything in place before the doors even open. Be fully stocked and take the time to train your staff. Get them excited and knowledgeable about the concept so they can pass that energy and information along to your customers. First impressions go a long way. A pop-up store is an excellent way to educate your customers about the benefits of your products. If you give customers a great experience, they'll come back and tell others.
Don't stop. Things don't have to end once the pop-up bubble bursts. Try engaging your customers by establishing a web presence and connecting with them via email or social media. If you decide to reopen, you'll instantly have a pre-established customer base. Solicit customer feedback to help you assess the success of your effort. That can't be reflected in dollars alone. You might find out the following: you have a business model that could be sustainable in a permanent location; you should consider extending the lease to meet customer demand; or what your problems and issues were so you can correct them. By forging a personal connection with your customers, you can create long-lasting bonds and build customer loyalty.
The abundance of vacant retail space has created opportunities for many businesses willing to venture out into new retail frontiers. All the effort you put into establishing your business before opening the doors will pay off, even if all you gain is experience. Aim to do it the right way the first time and you might avoid some common pitfalls and mistakes, and your pop-up business will reap the rewards of a job well done.
Christina Norsig is the founder and CEO of PopUpInsider.com, an online exchange that connects landlords with vacant retail space and retailers with a temporary home. Reach Christina at sales@popupinsider.com.
