The Christmas lights are being switched on, signalling for many the start of a festive shopping season that, after a turbulent year, could not have come early enough for retailers. As companies seek new ways to grab the consumer’s attention and re-ignite their desire to spend, the high street is seeing mainstream brands embrace the phenomenon of pop-up shops.

The concept of taking a retail unit for a short-term basis during busy trading periods is no longer the preserve of small independents operating Hallowe’en or Christmas shops. A melting pot of economic and social factors is convincing popular, high-street brands to use pop-up shops to test new markets, products and concepts in a similar way to how they once used online channels before opening a physical store. The concept enables them to focus on a specific product line or assortment of products, and the temporary feel of the store and the limited stock helps to stimulate spending, creating a sense of urgency to buy in the consumer’s mind.

Greater flexibility in the retail property market is a key factor, as landlords are more prepared to accept short-term or month-to-month leases. And advances in technology mean that setting up and operating a pop-up is now simpler and does not require a high level of capital. However, the phenomenon is not solely the result of more readily available temporary square footage.

The concept plays to the “millennial shopper”. This group is highly individualistic, they want uniqueness and a fast-paced, constantly evolving shopping experience. The “buy it now or never” nature of these temporary sites is well suited to this new breed of shopper.

And it is not only retailers who are driving an interest in pop-ups. Consumer product manufacturers are seeking new ways of engaging with their customers. Marmite’s three-floor pop-up shop on Regent Street is one of the most eye-catching examples. Amidst the crowded world of advertising, this creates an opportunity to meld the online world with the physical, giving consumers a chance to interact with customer service, to try the product before they buy.

Pop-ups are not free of challenges and risks. Brands wishing to explore the concept, especially non-retailers, should ensure that they have tackled some key considerations. Companies must be sure that their economic model is sound — the lease cost, technology, advertising and store labour are all part of the equation. A flexible distribution model must be in place that can deliver a sufficient supply of stock to the pop-ups without overstretching their existing supply chains or incurring significant costs.

Pop-ups must also meet the consumer’s customer service and brand expectations. The product quality, variety of the product assortment and the level of customer service on offer all need to be commensurate with the company’s brand identity. This is not an easy task when using short-term, seasonal employment or managing the return of purchases after the pop-up has closed.

However, although there are challenges, pop-ups are a legitimate mainstream concept and we will see many more retailers and brands take advantage.

Stephen Zatland is Head of Retail at Accenture UK & Ireland

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