Why open a pop-up store?
Pop-up stores are a good option to add prestige to a brand image and attract consumer interest. In fact, sales are not the main objective of an “ephemeral shop“: mainly, it is about let potential customers know the brand or certain products. Afterwards, they’ll finalize the purchase in another channel, another point of sale or on the website.
Retailers use these spaces to create interest in their brand and products. Brands like Nike, Ikea, Guess and Amazon have opened pop-up stores to enjoy the many benefits they offer. But, calculating the results, will it really be worth investing in these spaces? How to evaluate if these types of shops are effective?
Reasons to open a pop-up store
The main reasons for opening a pop-up store are related to the promotion of the brand and new products or exclusive offers. Furthermore, these spaces can attract potential customers and be a direct means to advertise or conduct specific marketing campaigns.
Pop-up shops attract pedestrians who do not necessarily intend to make purchases, but end up discovering new products that arouse and stimulate their interest. The risks associated with opening are generally not as high as those of a normal permanent shop, as the concept is generally simpler and the costs are more predictable and contained.
The impact of these shops goes beyond selling, because they can generate leads, bringing consumers online and fostering multi-channel sales.
A multichannel store
Pop-ups are generally a way to approach the world of physical retail for those online retailers, and enjoy the benefits of brick & mortar. Moreover, it allows retailers to better understand the importance of data analysis, while helping to generate more traffic on the web.
In any case, the largest number of retail sales still takes place in the physical store. Brands must therefore take advantage of the opportunities offered by these spaces, which not only generate sales, but also serve as a loyalty tool and an opportunity to improve brand visibility withouty ge the need for large investments.
Is the game worth the candle?
One of the strengths of pop-up stores is its location, probably the most important. Therefore, it is necessary to analyze the influx of pedestrians in a specific place to know where it is more profitable to open an ephemeral shop and have a good level of visibility.
In essence, pop-up stores can turn into a great tool to increase sales or in-store visits (physical and online).
But, to evaluate its profitability, it is necessary to analyze the data and habits of our customers: income, expenses, repetition rate, total sales, level of attraction, average ticket, etc.
Only with this information will it be possible to know the true value of a pop-up store.