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.

Is the Department Store Dying or is this Evolution as Usual?

Is the Department Store Dying or is this Evolution as Usual?
Retail Real Estate Trend: Luxury Retailers Revive the Customer Experience


There are some questions in retail that never seem to go away. Among the most-asked concerns is the health of the traditional department store. Is this retail concept on life support? Have department stores lost their relevance? Are we in a post-department store era? Industry watchers, the media and even retailers themselves raise these queries regularly. As regional leaders in retail real estate, it’s an issue we keep a close eye on. Here are some of our recent observations.

In Retail, Change is the Name of the Game
Nothing in the retail industry is static. Since the first department stores opened in the mid-19th century, the concept has been evolving, driven by changes in economics, demographics, population migration and technology. Yes, in some cases the surviving department stores have lost their role as commercial anchors in America’s cities and even in some major malls. From the stresses on their middle class customer base to endless competition from smaller stores with unique product assortments, discounters, outlets, monobrands, club stores and online, these retailers face mega-challenges. Consider also that the ongoing cycle of discounting as a competitive tactic is eroding margins. No wonder we hear of store closings and stock downgrades and pronouncements of a post-department store era.

Can the survivors keep on surviving? It looks like they may have a fighting chance. Retailers will rise and fall as they always have. But the concept of a single space where shoppers can browse, discover and select from a wide range of items – and enjoy the experience – will likely go on. One caveat, however: if the retail icons don’t want to go out like the dinosaurs, they’ll need to continue evolving to meet customer needs.

The 21st-Century Department Store is Rising Thanks to Luxury Retailers
Department stores are writing the next chapter in their history. Many middle-market merchandisers are in transformation mode with heavy emphasis on technology. Most major players in this category, for example, have embraced omnichannel to meet the demands of tech-empowered shoppers and to counter online competition. A smoother shopping experience with electronic beacons and self-checkout counters is in the making. Smart mirrors are being featured in fitting rooms. And sales associates with tablets in hand can provide instant information about the entire inventory.

It’ll take more than tech wizardry though to reinvent the department store. High-end retailers may have found a winning strategy by restoring the joy of shopping. Neiman Marcus, Bergdorf, Barneys New York, Nordstrom and Saks Fifth Avenue are leading the charge in the U.S. Their goal, echoing the original concept of the department store, is to create a unique customer experience that goes beyond transacting. Listen to their executives and you’ll hear phrases like retail theatre and creative merchandising. To deliver those, they’re reimagining interior space with maximum aesthetic appeal, curating inventory, introducing new lines and designers, incorporating restaurants and wine bars into the retail environment, using pop-ups, and staging exclusive events. They’re exploring the concept of customizing each branch store with touches of local style. They’re doing things their online competition can’t. And they’re not neglecting technology. They’ve mastered omnichannel and moved into data mining to gain precise insights into the habits and preferences of their key customers.

Retail Real Estate Trend? Joy of Shopping at Middle-Market Department Stores
Middle-market retailers can’t (and probably shouldn’t) try to mirror the tactics of the luxury department stores, but there are signs they are scaling the joy of shopping concept to fit their markets. Ideas on the table include right-sizing space and upgrading interiors, improving visual merchandising, curating inventory to include exclusive brands, incorporating food and beverage service and upgrading staff. Localization of branches and unique in-store events, sometimes inspired by a chain’s flagship venues, are emerging. (Read more about this trend here: http://www.businessoffashion.com/articles/intelligence/whats-next-for-the-american-department-store.)

Back to the Roots of Successful Retailing
Is there a silver bullet here? Department stores may finally be on track to reclaiming relevance and appeal. They seem to be taking the advice of Macy’s Margaret Gitchell, one of retail’s first female executives. Her mantra was “never forget to astonish the customer.” That worked in the19th century and it may just be the key to surviving in the 21st.

It’s an Omnichannel World but Retail Stores Continue to Rule

Consumers Love Online but Still Prefer Shopping at Bricks and Mortar

You know there’s a big retail real estate trend brewing when Amazon, the premier pure play online retailer, announces a plan to open 300-plus book stores. Yes, that’s stores, as in bricks-and-mortar establishments. Market tests of on-campus locations and pop-ups in major cities preceded their February 4 announcement. Amazon’s move is an important indicator of the increasing success of omnichannel and an acknowledgment of the role of the physical store in branding and building sales in concert with online and social media. But the successful bricks-and-mortar establishments of the new omnichannel era we’re doing business in are not your grandpa’s retail store. Read on for a quick glimpse of what’s happening and what’s ahead.

The Traditional Store is Morphing into an Omnichannel Hub

As a leading retail real estate company and one of the top construction management firms in the Northeast, Levin is excited about the coming changes in store design. And, of course, we’re pleased that bricks-and-mortar establishments continue to be favored by America’s shoppers. (Over 90 percent of the transactions in December 2015, in fact, took place in a store, according to the ICSC). http://www.chainstoreage.com/article/icsc-omnichannel-wins-physical-stores-epicenter

As one ingredient in the omnichannel mix, stores now and in the future will have to offer more than just physical access to merchandise. Today’s consumers tend to have pre-shopped online and expect the store to be just one element in a seamless purchasing experience. Store design and construction will have to accommodate “click and collect” purchases made online and picked up in-store, plus returns and exchanges – that means easy in-and-out and space to hold pre-ordered merchandise. The demand for same-day delivery will have implications for parking and loading vehicles.

Information-on-Demand and an “Entertaining” Environment: Retail Real Estate Trends to Watch

Omnichannel shoppers expect web-supported shopping. That means kiosks and touch screens that let them check product availability and place orders, plus store associates with tablets to provide up-to-the-minute information and hassle-free checkouts. As a model store environment, think Apple.
Virtual fitting rooms and same-day delivery are predicted to shrink the selling floor, with more space going to lounges for food and beverage services that rank high, especially with Millennial shoppers. Since omnichannel shoppers prize the VIP treatment, expect to see more sensors, beacons and other electronics that will allow a retailer to deliver coupons and points to mobile phones and direct shoppers to merchandise based on their purchasing profiles. Retailers on the leading edge of omnichannel have already introduced these in-store features. Take a look at Crate & Barrel, NordstromStarbucks, and Top Shop to name a few. Expect more to come. https://erply.com/case-study-how-you-can-copy-nordstroms-secrets-to-massive-retail-success/ and http://insider-trends.com/why-omnichannel-is-the-elusive-holy-grail-of-retail-and-three-retailers-who-have-found-it/

No Longer a Secondary Player, Logistics are Now Key to Omnichannel Retailing

Click and collect and in-store online ordering, both with demand for same-day delivery, have placed new importance on logistics. Warehouses and distribution centers will need to be in closer proximity to stores. Some retail real estate trend watchers predict that large warehouses will become the hub, with smaller centers near stores serving as the spokes in the delivery wheel. The possibility that retailers may supplement their flagships with pop-ups or small specialized boutiques will mean further logistical challenges. http://www.inboundlogistics.com/cms/article/new-retail-strategies-its-a-store-its-a-site-its-a-warehouse/
Warehouses, whatever their size or location, are facing changes driven by the fulfillment of small individual orders with quick turnaround. The impact on IT, employee levels, building design and configuration, and transport are massive, along with the need for acreage in densely populated areas. Retail real estate and construction management are certain to feel the effect of these changes in logistics.

Every Step in Omnichannel Leads to Another Step

The convergence of the virtual and the physical in retailing is just the beginning. As that blend is achieved, new doors are opening. Retailers and the businesses that service them will have to walk through those to succeed in the evolving and complex world of multichannel.