Pop-up stores a winner in retailing reinvention
Commercial landlords should embrace pop-up stores if they are to weather changing shopping habits and prevent valuable spaces from lying vacant, a real estate agent says.
Pop-up stores – the temporary conversion of an empty space into anything from a commercial outlet to an art gallery – have surged in popularity in recent years, and have become a permanent part of the retail landscape in major shopping centres in the US and Europe.
They have yet to cement themselves fully in the New Zealand market, but key players in the retail market have acknowledged their move into the mainstream.
Retailers and landlords who previously ignored or dismissed them as marketing events or as cheap discount stores, or perhaps because they lacked the know-how to try them, are now seeing their worth as an opportunity to reach out to new customers.
Bayleys national commercial director John Church said the rise of pop-ups was partly due to the fact that they provide a ‘‘neat solution to a persistent problem: empty shops’’.
‘‘The temporary nature of popups means the risk is low for all parties involved.
‘‘Retailers can take a gamble on a new location or new product, and dare to be creative – pop-ups are equivalent of taking a car out of a test drive – while landlords can fill their spaces more quickly, and expand their client base.’’
Through the power of the popup, previously underutilised sites could be ‘‘transformed into vibrant commercial hubs’’, Church said.
‘‘Using pop-ups can help entrepreneurs stay nimble and lean - they do not need to sign long leases, stash away much cash or carry big credit lines.’’
For commercial landlords who had long relied on the attractiveness of their conveniently-placed retail spaces, pop-ups were something to ‘‘fall back on’’ when more shoppers preferred to make their purchases from their couches.
Greg Harford, of Retail NZ, said pop-ups would become an increasing phenomenon in New Zealand because they were not only popular with consumers, they were an opportunity for retailers.
‘‘Retail is constantly reinventing itself - new stores are coming in and old businesses are closing down.
‘‘Commercial landlords are always going to prefer a high-end retailer on a lengthy lease but popups are an opportunity for them to fill the gap between permanent tenants.’’
In Christchurch, a pop-up mall was a colourful beacon of hope for a city trying to find a way through the pain of the devastating earthquake of February 22, 2011.
Pop UP Now founder Lizzi Hines, said for many people not in the real estate business, the notion that landlords could leave empty retail space for years was ’’mindboggling’’.