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.

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.