Pop-up stores contribute £2.3bn to the British economy, according to a report last year from Centre for Economics and Business Research and EE. Today they’re fundamental to retail marketing, especially for pure online retailers. This is for two reasons: first, they offer fresh ideas and experiences in the physical world, which makes them an intuitive retail extension; second, people want a multi-sensory experience.
Even big name e-tailers are moving into bricks and mortar. Boden recently announced plans for a high street launch. In March, Google opened its first-ever shop in London. “With the Google shop, we want to offer people a place where they can play, experiment and learn about all of what Google has to offer, from an incredible range of devices to a totally-connected, seamless online life,” said James Elias, the company’s UK marketing director.
Meanwhile, established brands are jumping on the pop-up bandwagon to create memorable brand experiences. M&M World popped-up this summer in SoHo, New York City, while in July, Sprite took over a corner NYC’s Nolita neighbourhood, sprinkled with events such as a cooking class with chef and TV producer Eddie Huang, and a performance by rapper Vince Staples.
Charity taps into the latest retail trends
Building on this trend, The Royal British Legion (RBL) has opened the first in a series of national Poppy Shop pop-ups in two major UK shopping destinations, Bluewater in Kent and London’s Westfield Stratford City, to boost fundraising during the poppy appeal. It’s a marketing step-change that extends RBL merchandise from e-commerce via it’s website to bricks and mortar.
The pop-ups came in answer to the conundrum that while RBL has very high brand awareness, its merchandise purchased online currently has a very loyal but relatively small fan base. It needed a retail strategy, provided by us at Geometry Global, to drive awareness of the products and raise funds for the Legion’s vital support work.
RBL’s pop-up reflects the growing trend for retailers to strategically attach to a relevant moment of heightened awareness or relevance. However, the growth in pop-up shops is as much about brand building and building positive surprise as it is about driving direct sales at a given point in time. For example, the “Deluxe” Lidl pop-up restaurant launched in November 2014 sought to drive reappraisal of a discounter as a provider of high-end produce.
Short-term retail is effective; it satisfies shopper desire for something unique – a joyful element of discovery – together with the scarcity of wanting to get it before it’s gone, creating a sense of delightful urgency. In the case of the Legion, the iconic poppy lends itself to beautifully curated products that help people to donate and show their support in a more personalised way.
Pop-ups: the ones to watch
As for the future, we predict a growing trend towards innovative online retailers launching an occasional pop-up presence to raise brand awareness. Nothing beats holding a product in your hand, feeling the texture and seeing the minute details, which can’t be done online. We also see the continued rise of pop-ups as an enabler of brand reappraisal.
After all, many successful retail brands started out as pop-ups. Richard Reed, co-founder of Innocent Drinks, launched his smoothie company at a music festival, while restaurant chain Meatliquor started from a burger van and is now valued at £20m. With this potential for business growth, the pop-up space is certainly one to watch.
Sarah Todd is chief executive at Geometry Global UK
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