Pop-up stores booming trend in retail
Category Whats New
Pop-up stores a booming trend in retail
02 Feb 2015
Pop-up stores are a booming new trend that has broadened thinking in the traditional retail sector. Temporarily opened to take advantage of a seasonal product or to test the potential of a product or concept in the market, pop-up stores have gained an increasing popularity in South Africa.
Mark Souris, managing director of Periscopic Masingita, says pop-up stores offer many benefits to both the entrepreneur and the shopping centre.
“Pop-up shops are an ideal way for entrepreneurs to sell and promote their business, and by doing so, it allows them to gauge whether or not it will have long-term benefits in the market.” He says it is cost effective, with low overheads and does not require the commitment of a full lease agreement contract.This is according to Mark Souris, managing director of Periscopic Masingita, who says with the dismal South African economy, entrepreneurs and retail centres are forced to find ways of making additional revenue. Pop-up stores offer many benefits to both the entrepreneur and the shopping centre.
“New business owners that are looking to expand should take advantage of an opportunity like this to create awareness around their brand.”
Souris says like with everything, opening a pop-up store comes with its own set of challenges for entrepreneurs. “It is difficult for business owners to find staff and shop assistants that are willing to enter a contract of employment that is on a short-term basis and does not offer long-term financial security.”
In addition to this, training staff for such a short period of employment is costly for business owners, he says.
“Shopping centres are seeing some great benefits with the opening of temporary stores. Instead of having shops that are vacant, landlords are placing pop-up shop tenants, also known as nursery tenants.” He says this allows the centre to ascertain if the products or services being offered are suitable for their target market and if it is worth offering the nursery tenant a permanent lease agreement.
Souris encourages this development in retail, and considers it to be a trend that will continue to be successful. “Our current tough economic situation has opened up new exciting possibilities for creative business and it is giving landlords and management the opportunity to diversify their retail centres.”
Author: Mark Souris, managing director Periscopic Masingita