The Growing Value of Pop-Up Retail

In the UK, total retail sales increased by 2.6% in January, marking the industry’s most substantial growth in nearly two years. The ongoing challenge for retailers now is to continue pushing for growth. Creating unique and creative customer experiences can help brands drive sales and achieve significant growth. 

The toil of opening physical stores usually comes with the form of upfront costs, one avenue brands have begun to explore is the growing value of pop-up retail, also known as flash retailing. Pop-up retail is a temporary retail space that brands use to sell products, promote services, or create unique customer experiences. Pop up stores rely on temporary locations and come in various forms such as stand-alone pop-ups, shop-in-shop pop-ups or cooperative pop-ups. Each can be tailored to meet brand objectives as well as consumer needs. 

Especially in the social media scene, the buzz of pop-up stores has started to dominate platforms such as TikTok and Instagram. With many online influencers attending and sharing insights on new products and launches, it has become a core opportunity for brands to expand their audience and attract new customers. 

To further advance the value of pop-up stores, retailers are turning to innovative technologies to expand beyond physical spaces to include online experiences. Utilizing digital pop-ups in the form of limited-time online events, temporary webpages or eCommerce platforms further excels the customer journey and creates virtual brand experiences.

Creating the Ultimate Scene for Brand Visibility

A top priority for retailers is ensuring that they have a constant flow of traction in the public eye. To achieve this, retailers need to think outside the box to introduce new ways to increase visibility and make their mark in the retail scene. Recent statistics highlight that 81% of customers prefer companies that offer a personalized experience. Pop-up stores can serve as a key tool for retailers to raise brand awareness and add a personal touch to the shopping experience.

For brands looking to broaden their brand visibility, personalization is a key element to any popup store or event. One brand in particular that has showcased the influence of personalization tactics is the UK plush toy brand, Jelly Cat. Last summer, Jelly Cat opened their Fish & Chip London experience pop-up store, drawing inspiration from the classic British dish while offering a range of exclusive toys. The brand encouraged fans to participate in an interactive experience with staff and ensured each customer had a personalized product alongside their purchase. 

By utilizing flash retailing, brands can connect with customers on a personal basis, offer exclusive products and further enhance the customer experience. In addition, incorporating retail technologies such as Customer Relationship Management (CRM) tools into pop-up stores enables retailers to analyze customer purchasing habits across sales and have visibility over consumer preferences. Ultimately, allowing retailers to offer tailored discounts and promotions to create a bespoke customer experience, whilst driving product sales. 

Excelling Boundaries with Experimental Shopping

Improving the shopping experience is always an opportunity for retailers to stand out and drive loyalty. 

Teamwork Commerce’s Technical Service Director, Clint Ridenour, has noticed a continued trend of retailers utilizing pop-up shops, saying, “Some of Teamwork Commerce’s clients are using these pop-up experiences that are great for them to connect with customers in a new and different way. We are able to use our Mobile POS to support and get those set up quickly.’’

Therefore, many retailers are turning to interactive and experimental features to bring pop-up stores to life and further elevate the customer shopping experience. One interactive tool that is becoming increasingly popular in pop-up stores is the use of augmented reality (AR) technology. Through utilizing AR, brands can interact with customers in unique ways. Recently, a UK brand, Selfridges partnered with social media platform, Snapchat to create an AR sport-inspired experience. Customers could virtually try on a kit and experiment with Snapchat’s technology whilst enhancing interactions with the brands. 

To further upgrade pop-up store services, including technologies such as Mobile Point of Sale (POS), is an efficient way for customers to continue that memorable experience. Deploying speedy and smooth checkout solutions such as Mobile POS enables retailers to focus more on providing the ultimate pop-up experience and less on logistics behind the scenes. Additionally, payments can be made anywhere, creating a convenient and flexible service, perfect for any pop-up store or event. 

Striving For Cost-effectiveness

The saying ‘try before you buy’ is one of the many benefits brands can enjoy with a pop-up store. Compared to running a physical store, pop-up stores allow retailers to try new products and test out new locations while lowering overhead costs.

As a result, retailers have begun to explore other avenues such as digital pop-ups as a way to strengthen their customer base and be a cost-effective way to engage shoppers. Many of these pop-ups are being hosted on a website or social media platform and are used to create a sense of urgency or excitement around a brand. 

The UK beauty brand, Benefit, has been one of many retailers to dive into the world of digital pop-ups by launching their 3D shopping experience, ‘The Benemart’. The online digital shopping experience allows customers to browse the store as an avatar, shop with friends and bring gaming-inspired commerce into play. Introducing an immersive shopping experience such as a digital pop-up store can serve as a social hub for loyal as well as new customers to connect further with brands. Likewise, the cost-effectiveness of pop-up stores gives brands the freedom to expand their community without the financial burden. 

The Impact of Social Media

The influence of social media has had a big role to play in the value of pop-up stores. In particular, the increase in influencers being invited to pop-up stores and events has created a sense of community within the retail scene. Recent statistics have revealed that one in 10 Gen Z consumers in the UK said they regularly bought products promoted by influencers. This reflects why influencers are also using pop-up stores to break into retail with celebrities like Molly Mae debuting their fashion line, Maebe at a London pop-up just last year. 

In addition, digital pop-up stores or ‘live shops’ are now a prominent part of the shopping experience. Platforms such as Instagram, TikTok and Facebook are making shopping more accessible by including features that allow users to discover, browse and purchase directly from their feeds. This new form of digital pop-up stores has provided retailers with the opportunity to interact with their audiences in real-time, encourage more sales and engage with followers to increase brand awareness and expand the brand community. 

The Takeaway

The value of pop-up retail is a fundamental asset to retailers. By incorporating elements such as experiential installations, AR experiences, or interactive displays into pop-up shops, brands can empower customers to participate in forging meaningful connections and enhance overall brand visibility. These temporary installations can be used to transport consumers, create immersive experiences and build opportunities to attract a new customer base. Brands who use the power of flash retailing can capitalize on multiple opportunities to drive sales, increase revenue, and maximize their customer base. 

To find out how retail technology can upgrade your pop-up store experience, Click here.