BUS613: Advanced International Business

"Pop-up retail, once a novelty, is now the norm". This is because the pop-up retail format uniquely appeals to different stakeholders: customers, retailers, landlords, local authorities and community leaders.

According to Baras (2016), "consumers are now favouring locally made products, both for environmental reasons and because of desire to know more about the merchandise they buy – where, how and by whom a product was made. They want an antidote to the homogenization of choices that are offered by chain stores and chain restaurants and while e-commerce offers convenience it does that by eliminating the shopping experience that many shoppers feel is just as integral to the buying process as the items that are for sale".

For retailers, while bricks-and-mortar stores add pop-up shops as an omni-channel addition, internet pure players also enlist pop-up retailing as a means to add a human touch to what is lacking in e-commerce. Furthermore, pop-up shops have provided new ways for artisans to sell their products, property managers to lease their spaces, established brands to launch their new products and celebrities to engage with their fan bases4, and all the new opportunities are made available with a relatively low cost and low risk pop-up option with no long-term commitment, by design.

From a landlord's perspective, pop-up retail operations have helped to reduce vacancy rates, bring in increased foot traffic and create a refreshed feel to a well-established traditional tenant mix in an area or a shopping mall. For local authorities and community leaders, pop-up shops contribute to elevated commerce activities, increased interest in "shopping local" and sustained efforts to build vibrant communities.

Experts project that pop-up retailing is poised to become a permanent element in the broad retail economy. It's a "universal" retail format that's adaptable to a wide range of products and services, from luxury brands to fresh local produce at a farmer's market, from tax service available in a kiosk to wine-tasting offered at a pop-up bar. Although Millennials are the main target customer segment for pop-up retailers, Baby Boomers share equal enthusiasm, as some of them envision their entrepreneurial spirits being channeled through pop-up retail operations after retirement.