Business Tool, No Matter the Size

LAS VEGAS—The term “pop-up” has gotten a bad rep in a lot of ways—with people associated it to “the thing in the middle of the mall” where someone is harassing shoppers as they walk by—but perceptions have drastically changed. So said panelist David Blumenfeld, SVP of Westfield Labs, based in San Francisco. “Pop-ups are now getting a lot of buzz and traction.”

According to Blumenfeld, pop-ups are yet “another way to interact with people as they come into the center.” It becomes a way to engage the customer, he explained. “It gives them a new experience which is ultimately what we want to do.”

Pop-ups are no longer this “temporary thing,” added Blumenfeld. It is more a matter of getting active in a new innovative way and is gaining popularity. The format represents a low-risk way for retailers to either test the waters in new markets or drive brand equity in targeted markets for specific periods of time and purposes, he said.

Russ Miller, founder and co-owner of Vacant LLC, based in Pleasanton, CA, said that there is a strong market for shopping center pop-ups, but he also pointed out that pop-ups increase in popularity during holidays and special events. “The Thanksgiving market in New York City is extremely busy in real estate for pop-ups, and February for Fashion Week.”

Miller said that it is a way to maximize vacant space. “There is more of a growing demand for 'short term' retail space for independent designers and emerging brands.”

Pop-ups aren't so much about creating brand experience; they are more about creative consumer interactive stores, Miller said. He pointed to a few different concepts that are gaining in popularity, such as rotating retail in airports or other venues, where there is a specific length of each residency—30 days in the example Miller cited.

Other examples he pointed to included the pop-up HBO Game of Thrones container, which can travel and “is a great profitable thing for the brand,” and the Beatles pop-up shop on a London double-decker bus in New York City. He also pointed to the McDonalds “Quarter Pounder shop” in Japan and Ikea's one-bedroom apartment build out at Paris Metro. “It is the whole experience of having a store come into a shopping environment but in another way.”

Another hot pop-up concept is incorporating more interactive branded touch screens, digital technology and games. The pop-up shop “forwards companies that are digital in nature to actually have a physical presence,” said Blumenfeld. “We are seeing pure online brands become more tactile. People realize you have to have multiple channels no matter where you start.”