POP-UP shops are a new phenomenon worldwide.
What is it? Essentially, a store will open for just a few days, weeks or months purely to give a shot in the arm to a shopping centre or shopping strip.
It also gives the retailers a low-cost way to show their wares and test a new outlet without the heavy overheads of a long-term lease.
The concept works, says a new study. CBRE’s Retail MarketView report shows that pop-up shops have helped fill vacant stores on some of Melbourne’s most prominent shopping strips.
They have also given retailers and landlords the chance to focus on new marketing and brand initiatives in the tough retail environment.
The report shows that the overall vacancy across Melbourne’s top 10 retail strips fell to 3.5 per cent over the second half of last year, with the most marked decrease on Bridge Road.There the vacancy rate fell by 2.7 per cent after the leasing of 10 shops – four tenanted by pop-up stores, among them the ”Spring Clean Shop” for the Melko – Made in Brazil boutique.
Pop-up stores also emerged along Acland Street and Chapel Street, helping to drive down vacancies in both, while Celine Victoria sold its range of hats and fascinators in the Melbourne CBD in the lead-up to the spring carnival.
Mr Cookes said retailers benefited from the low upfront cost while testing the market or clearing excess stock. ”At the same time, landlords benefit by avoiding vacancy while letting tenants try before they buy or while waiting for the right long-term lease deal or concept,” he said.
The pop-up is not just a Melbourne phenomenon. Mr Cookes said the concept had become popular among brands targeting the youth market, which liked the spontaneous nature of what was often regarded as a retail ”event” – the idea of here now, gone tomorrow.