Pop-Ups are Bringing Excitement to Brick and Mortar Retailing

No Longer Just a Retail Trend, but a Way to Build Traffic and Brands
They began popping up in the bleak days of the last recession when shopping was dormant and retail vacancy rates reached 13 percent. Their focus was typically seasonal and their leases were temporary but they helped many a retail property manager survive the downturn. But the pop-ups didn’t fade away when the economy bounced back. In fact, these stop-gap stores have evolved into a $10 billion industry that some retail trend watchers say can help bricks and mortar merchants counter their online competition.

Pop-Up Retail: Custom Made for the Experience Economy
No longer just sellers of Halloween costumes or holiday decorations, pop-ups now provide innovative, sometimes daring, ways for retailers and brands to lure shoppers (especially experience-seeking Millennials) away from their screens. These temporary retail outposts sprout in urban centers, in malls, galleries and public spaces and in unexpected venues like barges, buses, even shipping containers. Known for pushing the envelope of retailing, they rely on the elements of novelty and surprise not associated with traditional stores. Read more: http://popupinsider.com/pop-up-phenomenon/

By now, virtually every brand category has at least dabbled in pop-up retailing. From big names like Nike, Reebok, Levi’s and Samsung to avant designers like Comme des Garcons to newcomers like Etsy artisans, looking to test the market, all have gone the pop-up route. Target has used the pop-up concept repeatedly for cause marketing and to promote its top product lines. eBay stepped out of the virtual world with Showhouse pop-ups decked out in furnishing and accessories available for online bids. Then there’s the Meow Mix Cat Cafe for cats and their humans, which set up temporary residence on Times Square. The creativity shows no sign of stopping.

Traditional department stores have joined the pop-up phenomenon too. Nordstrom turned the concept around with Pop-In @ Nordstrom, where select branches play host to new designers and product purveyors, some chosen because they are usually unavailable in the local market.

What Makes Pop-Up Retail So Hot? Fun and Exclusivity
With their ingenious presentations and unexpected venues, pop-ups offer something absent from the typical shopping experience: fun. When Pop-Up Republic, a specialty marketing and management company, conducted a recent survey, they found that 30 percent of pop-up customers were looking for fun in their shopping experience. Besides fun, pop-ups deliver a sense of exclusivity. Merchandise is often new to the market, making buyers the first to own it. And since the stores operate on a temporary basis, opportunities to acquire merchandise or experience the environment are time-limited –also contributing to a sense of exclusivity. Read more:

https://www.shopify.com/enterprise/91139206-why-pop-up-shops-are-the-future-of-physical-retail

Besides generating sales, pop-ups are attention magnets, capturing both news coverage and social media comments. Marketers are increasingly making them an integral component of their overall advertising initiatives.
More than a Retail Trend: Count on Pop-Ups to Keep Popping Up
Yes, those temporary tenants from a decade ago have morphed into a thriving sector of the retail industry. They are supported by specialty architects and designers like Lion’Esque Group, global consultants like Retail is Detail, and real estate firms like Storefront that match pop-up retailers with available space. And having put fun into shopping, they may be just the boost the old bricks and mortar world needs right now.

Can Pokémon Go Keep Retail Sales Hot Through the Holidays?

Retail Trend Watchers Are Eyeing the Staying Power of Pikachu and Friends
This was the Summer of Pokémon. Within days of its debut last July, Pokémon GO, the augmented reality game was breaking records and setting new ones. In just five days, it became the most popular game in mobile history, with its free downloads eventually reaching 500 million. While the action was concentrated among Millennials (who grew up with Pokémon), teen users were spending more time hunting Pokémon characters than posting on Twitter and Instagram combined. Females, traditionally a smaller segment of gamers, stepped up to Pokémon GO, becoming 40 percent of the user population. Since the game forced players off the couch and into the outside world, there were unintended consequences. Some, engrossed in the hunt, were robbed. A number were arrested for trespassing. Many got traffic tickets, and a few even fell off cliffs.

Pokémon GO Fans Have a Hearty Appetite for Branded Merchandise
When fans weren’t catching and training the elusive pocket monsters, they were shopping for merchandise that reflected their passion. Online sales of Pokémon merchandise were nothing short of spectacular. According to the Adobe Digital Price Index, sales of Pokémon-branded items rose 105 percent in July, compared to the previous year, with the hottest items being video games, toys and t-shirts. But what’s next? Can the frenzy continue into the holiday season? Will bricks-and-mortar stores reap the same success as online purveyors of Pokémon merchandise? Retailers have their fingers crossed and retail trend watchers are optimistic.

The Summer’s Frenzy is Cooling, but the Holiday Season Still Looks Strong
Pokémon GO was too hot not to cool down, but even as usage ebbs, the franchise itself remains a powerhouse. Gina Collins, CMO at Build-A-Bear, one of the stores licensed to sell Pokémon merchandise, is bullish on the coming season. “Sales have continued to gain momentum,” she reported. The chain’s inventory of 20th Anniversary Pokémon Pikachu plush dolls has sold out and there are wait lists for the next shipment.

Anthony Morales, assistant manager at Build-A-Bear in Fairfax, VA, reported that more and more customers are hunting Pokémon-themed items. “It feels like the 90’s all over again. We just had a group of kids that got a lot of Pikachu dolls and they were playing and talking in little Pikachu voices,” he told Ad Age.

Pokémon Items are Headed for the Kids’ 2016 Holiday Wish List
Pokémon fans can choose from an abundance of branded merchandise in the coming season: plush toys, clothing, accessories, and action figures, along with the Pokémon card game. Late November will see the launch of two new video games, Pokémon Sun and Pokémon Moon, likely to be best-sellers in that category this holiday.

Toy Insider predicts that “the Pokémon GO craze will command a lot of space on kids’ wish lists.” Their own Hot 20 List for 2016 includes two Pokémon-themed products. At the number nine position is Pokémon My Friend Pikachu (from Tomy) a plush toy that speaks, lights up and wiggles its ears. At position 20 are the soon-to-be-released Nintendo video games Pokémon Sun and Pokémon Moon.

If predictors of retail trends are right, 2016 holiday sales are in for a big boost, thanks to Nintendo’s crew of irresistible pocket monsters.

Back-to-School Retail Season Looks Like Something to Celebrate

Fastest Rate of Growth in Four Years Was Driven by Electronics and Discounters

Early numbers are in for the 2016 BTS shopping season and retailers have something to cheer about. Though August retail numbers slipped a bit (down 0.3 percent), BTS sales were strong. Retail trend watchers and managers of retail real estate alike can’t help but be cheered by the activity during this second biggest shopping period of the year.

Will BTS Sales Meet the NRF’s 2016 Projection of $75.8 Billion?
Though not all the numbers are in yet, a recent report from Reuters says that 2016 BTS spending grew at its fastest rate in four years. According to statistics from First Data, sales rose 2 percent in July vs. 1 percent in 2015 and 2014 and just .2 percent in 2013. The NRF’s $75.8 billion projection for the BTS 2016 may be realized.

Good Weather and Optimistic Outlook Brought in the Shoppers
Better weather than in recent BTS seasons brought a wave of shoppers into stores. Many of them were searching for bargains – especially parents of young children. These are the thrifty Millennials, who came of age in lean times. “Income rises faster than frugality changes,” one retail analyst suggested.

Electronics Were the Hottest Items on the 2016 Shopping List
As expected, the big-sellers could be found in the electronics category. Electronics and appliance sales have been climbing in 2016 – their sharpest ascent in four years, according to First Data. BTS shoppers went for tablets and USB drives, especially if those items were bundled with special offers. Best Buy’s aggressive offers and coupons delivered strong sales. Items geared for dorm life were among the big winners.

Gap Recovers and Fast Fashion Outposts Score Big
Gap gained traction during the BTS season, leading to thoughts that its troubles may be behind them. Low-priced, fast fashion stores like Old Navy, T.J.Maxx and Marshalls delivered strong numbers, too. Chief Industry Analyst-Retail at NPD Group, Marshal Cohen credited the numbers at these stores to youngsters who will accept shopping at lower-priced retailers because they can get “more stuff.”

Whatever the reason for surging sales, retailers are closing out a banner season – the best in a long time. Now, all eyes are on the winter holiday ahead.