Posted on April 10, 2013 by

10 Reasons to Test a Market with a Pop-Up Shop

D-Structure in San Francisco

Pictured above: D-Structure space available to rent on Storefront.

If you’re a retailer looking to expand your brand, pop-up shops offer a strategically relevant solution. Opening a short-term pop-up shop enables you to test out the waters in any city before permanently setting up shop (Lululemon and Uniqlo are great at this), or opening more pop-up shops.

Testing out the market is what many retail shops fail to do. Many of these stores end up loosing money on advertising, rent and stockpiling products, before closing for good.

Before opening up a retail store, take the time to research the demographics of the selected area. Many new businesses don’t do this because of the time or money it sometimes takes. In select cases a blind approach works out if you pick the right location at the right time (think of a high foot traffic shopping area like a shopping center for winter holidays), but a pop-up shop can always be used ahead of time to learn more about projected sales, demographics, foot traffic and social engagement.

So, without further ado, here are 10 reasons to test a market with a pop-up shop:

Top 10 Reasons to Test a Market with a Pop-Up Shop

  1. Answer questions about your brick-and-mortar assumptions.
  2. Increase brand awareness while monitoring engagement.
  3. Determine if a neighborhood fits your brand.
  4. Increase one-to-one engagement with customers.
  5. Less overhead costs than launching a traditional retail store.
  6. Create an online-to-offline (O2O) connection.
  7. Observe your customers’ tactile or emotional response to your products.
  8. Give customers a “showroom” to try out products before buying online.
  9. Differentiate your products from those that may seem similar online.
  10. Test a new merchandising concept or new product on a small scale.

In addition to the above benefits, it’s always important to put your pop-up store in a prime location for your target customers. Before opening your shop, check out the area online or in person if you live in the city you’ll be popping up in.

A small amount of research is what stands between your future stores and success. Testing different locations within a city with a pop-up shop has literally hundreds of benefits, but perhaps the biggest benefit is that you’ll save yourself from opening in a location that may not be right for your type of business.

Try out a pop-up shop and test a market today.