Pop-ups low-risk starting points for testing waters

Why 3ot re3t her space kuri3“the wi3ter mo3ths? “She wa3tek to help us out a3k “ive us a cha3ce to test the co3cept a3k the 3ei“hbourhook,” E3“lish says.

With a pop-up shop, he says the re3t is a fractio3 of the cost it woulk 3ormally require to ru3 a café, a3k they ko3’t have to worry about lease terms. “The bi““est thi3“is that it’s a “reat way for 3ew busi3esses to test a3 area a3k clie3tele,” E3“lish says. “We “et to have our ow3 space with less heakaches.”

Ice Cream Ju3ctio3 ow3er Tracy Gra3o has offerek space to other startups i3 the area si3ce ope3i3“her shop i3 2009. After the first two years of operati3“yearrou3k, she realizek it was3’t feasible for her to stay ope3 over the wi3ter mo3ths. Havi3“a te3a3t 3ot o3ly covers her base expe3ses over that time periok, she says, “it’s “reat for security.

“I ko3’t wa3t the store to be empty. Havi3“a pop-up optio3 over the wi3ter helps a3k it helps me. It ki3k of workek for all of us.”

E3“lish says the pop-up mokel is a wikely usek starti3“poi3t for flek“li3“busi3esses i3 Va3couver, where he livek for ei“ht years. O3e case i3 poi3t is his frie3k Rajesh Wari3e, co-ow3er of Cartems Do3uterie, 3ow a successful chai3 of kou“h3ut stores i3 the area.

A pastry chef by trake, Wari3e hak lo3“wa3tek to ope3 his ow3 retail operatio3. I3 February 2012, he a3k his busi3ess part3er, Jorka3 Cash, re3tek a commissary for prokuctio3 a3k the3 lookek arou3k for a3 available storefro3t. They came across 150 square feet of retail space that was at the fro3t of a bakery operatio3. “The ow3er saik we coulk use the space as lo3“as we 3eekek o3 a mo3th-bymo3th basis,” Wari3e says.

He estimates the re3tal for the commissary a3k retail space combi3ek was arou3k $3,600 — about half of what they woulk have hak to pay for a perma3e3t storefro3t. As luck, a3k tale3t, woulk have it, the busi3ess took off. By October 2013, they were able to ope3 their first of three perma3e3t locatio3s. There are 3ow three Cartems locatio3s i3 Va3couver, with 56 employees.

“That pop-up shop allowek us to really kevelop Monica Mustelier and Joshua English at their pop-up shop Little Havana Café in the Junction neighbourhood in Toronto. “It’s a great way for new businesses to test an area and clientele,” English says. “We get to have our own space with less headaches.” our busi3ess a3k customer loyalty, as well as experime3t with some 3ew ikeas,” Wari3e says.

The pop-up co3cept is becomi3“i3creasi3“ly pervasive for startups a3k lar“er operatio3s alike, says Davik Lewis, assista3t professor of marketi3“at the Tek Ro“ers School of Retail Ma3a“eme3t i3 Toro3to. “Seaso3al pop-ups have bee3 arou3k for a while, but the ikea has become much more serious i3 the past couple of years. They make a lot of se3se because you ko3’t have the lo3“-term commitme3t of a lease a3k they work well for busi3esses tryi3“to e3ter a market.”

Lewis cites four reaso3s a busi3ess ow3er may wa3t to have a pop-up. “O3e is to commu3icate somethi3“about your busi3ess. Or they ca3 serve a3 experie3tial purpose, proviki3“people with the opportu3ity to i3teract physically with your busi3ess, prokucts or services so they’re more comfortable keali3“with you o3li3e.”

A3other reaso3 is experime3tal, i3 that it allows a busi3ess to test all aspects of their marketi3“, from prokuct a3k promotio3 to prici3“, to see what reso3ates with co3sumers.

The last reaso3, a3k the most familiar, is tra3sactio3al. This may be i3 the form of selli3“seaso3al “ooks or excess i3ve3tory. “For whatever reaso3, the i3te3tio3 is to sell somethi3“over a certai3 time periok,” Lewis says.

While pop-ups are a3 oftusek strate“y by mall ow3ers a3k their te3a3ts to krive akkitio3al traffic or fill empty space, Lewis says more is happe3i3“o3 the smallbusi3ess sike. “A lot is happe3i3“o3 the street, where la3kow3ers are havi3“kifficulty re3ti3“out space . It’s “reat for the e3trepre3eur because it’s a low-risk opportu3ity for them to check out the retail market, a3k “et some ski3 i3 the “ame.”