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Pop-Up Stores: A growing retail strategy

  • September 2014
  • -
  • MarketLine
  • -
  • 18 pages

Introduction

A pop-up store is defined as a retail outlet that is created temporarily in a location for a short period of time. Pop-up retail is a growing trend. From start-ups to large multinationals, companies all around the world are becoming involved in pop-up retail. This case study will examine the rise of pop-up retail, factors that have spurred growth, and barriers that may hinder future expansion.

Features and benefits

* This case study details the establishment and growth of the pop-up retail sector.
* This case study examines the reasons why a company may choose to open a pop-up store, and the benefit these can have for a business.
* This case study looks at some of the companies that have become involved in pop-up retail.
* This case study looks at problems pop-up retail is facing and what the future may hold for the sector.

Highlights

The first pop-up store was established by Russ Miller in 1999. He was inspired to create the pop-up concept after observing that Japanese consumers would queue for long periods to buy rare products. Once stock was sold, stores would close until new stock was available. Miller tapped into this consumer mind-set, creating the first pop-up store.
The growth of pop-up stores has been accompanied by a growth in companies set- up specifically to aid pop-ups. For example, Storefront, founded in San Francisco in 2012, provides short-term retail spaces for companies to rent for pop-up stores.
Pop-up stores are often used to market seasonal items. Some business start-ups use pop-ups as a means of entering a market cheaply and with little commitment, testing a product and generating awareness. Similarly, for large companies, pop-up retail can be used to test a new product, or to test a new market, or simply to generate brand awareness.

Your key questions answered

* What is pop-up retail?
* What types of companies are involved in pop-up retail?
* Why do companies use pop-up stores as a business strategy?
* What factors are acting as a hindrance to growth in the sector?
* What does the future hold for pop-up retail?

Table Of Contents

Pop-Up Stores: A growing retail strategy
OVERVIEW
Catalyst
Summary
FROM HUMBLE MARKET STALLS TO MULTINATIONAL GIANTS
First pop-up store established by Vacant in 1999
Pop-up retail is evolving and becoming more mainstream
Companies have been established specifically to aid pop-ups
POP-UP RETAIL MODEL FAVORABLE FOR A VARIETY OF REASONS
Pop-ups allow a company to test a new product, brand, or market
Pop-up stores are used by companies targeting seasonal sales
Recession created favorable conditions for growth of temporary retail
Pop-up stores complement changing consumer preferences
Pop-up retail as a marketing strategy for online retailers
POP-UP GROWTH MAY BE STALLED BY BARRIERS
Pop-up retail is hindered by its own temporary nature
CONCLUSIONS
Is this new retail trend here to stay?
APPENDIX
Sources
Further Reading
Ask the analyst
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