FN Insights
Why brands are making microstores all the retail rage.
Real estate, from microstores to warehouses.
Storeowners have embraced the pop-up shop for years. But the popularity of AirBnB and the sharing economy is giving rise to a new kind of retail experience: a rotating cast of pop-ups under one specially designed, permanent roof.
“Retail formats are headed in the direction of WeWork’s business model,” said Faith Hope Consolo, chairman of the retail leasing, marketing and sales division at Douglas Elliman. “Online brands recognize that a physical storefront is necessary to propel sales growth, yet they don’t want the risk and high investment costs or the typical leasing strings. As a result, several companies are coming up with new solutions. This model offers an experiential factor to lure shoppers while satisfying the financial needs of the retailers. The trend has been to inch toward social environments. Just like WeWork did for the office community, these emerging communities are reshaping the retail world.”
Here are three concepts that aim to transform the traditional brick-and-mortar scene.
Fourpost
Location: Mall of America in Bloomington, Minn., (and West Edmonton Mall in Alberta, Canada) Size: 10,400 square feet
Brands under roof: 30
Ones to watch: Swedish brand Printwork. Its space is styled as a living room so guests can envision the products sitting on shelves in their own homes.
Selling points: Participating brands will be a mix of digital natives and local retailers, which will make every location a unique reflection of its surrounding environment; Minnesota United has a team store at the Mall of America location. Consolo said that by also offering store space to pop-up eateries, Fourpost fosters the kind of mixed-retail, social environment that is trending right now.
Brandbox
Location: Tysons Corner Center in Tysons, Va. Size: 11,000 square feet Brands under roof: Six Ones to watch: DKNY will be testing a new concept Selling points: Fully customizable store spaces due to the Tetris-style format and full-service support for participating brands, from design to technology to marketing. According to Consolo, Brandbox further supports retailers by providing services like shelving, inventory tagging and foot traffic data. Installation also takes only two to three weeks despite the high level of customization on offer, so rotating the brands is seamless, she said.
Neighborhood Goods
Location: Legacy West in Plano, Texas Size: Nearly 14,000 square feet
Brands under roof: 15 standalone stores, 15 other brands represented in the communal spaces Ones to watch: Stadium Goods, which will provide in-store drops of limited-edition products Selling points: In addition to temporary retailers, there will be three permanent Neighborhood Goods concepts: the Residency, for a curation of products by various selected brands; the Gift Guide, for holiday-specific giftable items; and Prim & Proper, a restaurant in partnership with Front Burner. The concept stands to benefit from activations and event programming, according to Consolo.
“Retail formats are headed in the direction of WeWork’s business model.” — Faith Hope Consolo