Wednesday, December 7, 2016

Pop-Ups, the New Darling in Retail

Pop-Ups, the New Darling of Retail
December 4, 2016

Pop-Ups have become very popular in Manhattan and around the world. Manhattan’s retail market has softened over the years, and pop-up stores have given stores and landlords opportunities to take advantage of this. With pop-up stores, retailers are able to see how the market is and how consumer like their products and brands. For landlords, this gives them an opportunity to temporary rent their space while at the same time showing their property off to potential tenants such as brokers and retailers. Because of the rapid growth of online shopping, nowadays retail stores prefer shorter leases and contracts. These kind of stores give retailers the opportunity to ‘test the waters’ and see which areas of New York consumers are more likely to buy a product of a certain brand or which areas they are more popular in. It is also a great opportunity for new brands or example to promote their products. For small and new retailers, it is a great investment to open a brick and mortar location compared to opening an online shop. However, having a store it gives retailers the opportunity to show the customers their products directly and interact with the consumer. The costs of opening a store are very high and almost not affordable. In addition to the costs, attaching to a long-term lease means a liability for these companies. An example of this is the startup brand Neely and Chloe, an online shop managed by sisters Neely and Chloee who offer handbags, footwear and accessories through their website. In addition to their online store, they have a pop-up store in New York that gives them more flexibility and opportunity to further their brand. Retailers and real state experts agree that Pop-up shops have created a new opportunity for both retailers and landlords. 

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