Pop-Up Shop Quickstart Guide

What's Next?

As an ecommerce merchant with a successful online store and a loyal community, you might be wondering about expanding your reach. Pop-up shops offer a low-budget, short-term solution to create physical retail experiences. With online channels becoming saturated, it's harder than ever to cut through the noise. A commissioned Forrester Consulting study found that 32% of brands planned to establish or expand their use of pop-up and in-person experiences, while 31% planned to expand their physical retail footprint.

What is a Pop-Up Shop?

A pop-up shop is a temporary retail activation, lasting from a day to three months. It allows you to sell products without the commitment of a permanent storefront, lease, or extensive staff management. Pop-ups can take various forms, such as street-level stores, market booths, gallery events, or even a store-within-a-store. They are also crucial for an omnichannel strategy, complementing your online presence and building loyal, engaged shoppers by providing an offline experience.

Questions to Ask Before Running a Pop-Up

1. Why?

• Are many online-bought products returned because they looked different in real life?
• Are you selling high-ticket items that customers hesitate to buy without seeing first?
• Are you looking to build a stronger community around your brand?
• Do you have older inventory that you'd like to clear? Pop-up shops are a great way to say goodbye to aging stock with new visual merchandising elements.
• Do you have an engaged audience with increasing e-commerce traffic and sales?
• Do you want to offer a more immersive brand experience?
• Are you considering expansion or opening a new location?
• Are you ready to break into a new market or new segment?

A significant downside of online shopping is the inability to see, touch, or interact with a product. This contributes to higher return rates for e-commerce retailers (11% higher than physical stores), with 22% of online returns due to products looking different in real life.

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2. Where?

• Look at historical sales data from your e-commerce store.
• Do the majority of your customers live in a concentrated area?
• What items are popular in that area?
• What is the average price range of a sale?
• Does this area offer spaces within budget and where your target customers shop?
• What is the foot traffic like in the areas you're considering? (Ask property owners or neighboring shops for insights.)
• What types of businesses are near the location? (e.g., restaurants, similar shops, parks)
• How easy is access and is there parking? (77% of shoppers cite finding parking as a major frustration.)
• Will this be a one-off event, or are you looking for a regularly occurring pop-up?
• What is the rental cost of the space? What is included (utilities, size, amenities)?
• Can the space be modified?
• What are the dimensions of the ceiling, windows, doors, counters, etc.?
• Is there Wi-Fi?
• Will you need insurance at that location?
• Do you need a permit or license?
• How much of a deposit is required?

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3. How?

• How much budget do you have?
• Do you have a point-of-sale system?
• Do you need to hire retail associates?
• How will you manage inventory on-site and combine it with your e-commerce stock?
• Will you offer contactless payments?
• Will you include QR codes for customers to view more colors/sizes or complete purchases online? (Shopify merchants can use Shopcodes.)
• How will you promote this pop-up? (Influencers, digital creators, partnerships, social media, email lists, local media, event venue pages are options.)
• How will your pop-up look?
• Do you want to offer appointment shopping?
• How will you measure success? (Measure by sales broken down by date, customer, product, and employees.)

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Venues for Your Pop-Up

Based on your answers, you likely have an idea of location, price point, and size. Here's a breakdown of different venues:

A Store Within a Store

Partner with a similar or complementary brand to set up a section of their store. This offers buzz and foot traffic for the host, and a ready-to-go space with a customer base for you. This concept is popular; for example, in 2022, Lowe's began rolling out Petco products and services in select stores, recognizing that 67% of their shoppers found comfort in pets over the last two years.

[Image: A Petco store-within-a-store setup featuring shelves stocked with pet food, health and wellness supplies, and accessories, with branding for Petco and 'The Health & Wellness Co.']

Gallery or Event Space

These spaces can offer a unique experience, are often aesthetically pleasing, and their owners are accustomed to hosting events and drawing crowds.

Showrooming

Run a reduced inventory store with only your best-selling products. Customers can see and feel items in person. They can then either:

1. Scan a QR code for the product, directing them to the product page on your e-commerce website.
2. Have a retail associate email a personalized shopping cart for them to complete their purchase online.

Seasonal Events (e.g., Black Friday, Cyber Monday)

Seasonal pop-ups can drive retention long after the event. Hosting them regularly builds anticipation. Squish Marshmallows, a Vendy awards finalist, found success at the Union Square Holiday Market in New York City, with homemade hot chocolate being a key draw.

[Image: A festive market stall for 'Squish Marshmallows,' with colorful signage, a display of marshmallows, and a sign for 'Hot Chocolate.']

Farmer's Markets

These offer high foot traffic, free samples, and a relaxed environment to meet your community and other merchants. Be sure to check vendor requirements and commitment levels.

Art and Craft Fairs

Customers at these events often look for unique, local, or personalized gifts. Research logistical details like spot availability, booth size, commitment, and cost.

Mobile Pop-Ups

Go mobile by renting a truck or bus. This allows operation in various locations, maximizing reach. Casper's Nap Tour traveled across Canada, and Paka Apparel founder Kris Cody toured with his alpacas to connect with people offline, using mobile point-of-sale and gift cards. He brought his alpacas to markets, parks, and competitions, offering alpaca hugs.

Shopping Center or Shopping Mall

New retailers can rent kiosks or booths in high-traffic areas or look for vacant in-line stores. While potentially less cost-effective, this is ideal for those with some retail experience.

Vacant Street Level Retail Space

Search for vacant commercial properties. Contacting real estate agents for hard-to-lease spaces can yield great deals on storefronts without long-term leases.

Pop-Up Look and Feel

How your pop-up looks and feels will vary depending on the space. Draw out your layout before building, considering traffic flow, lighting, POS, weather coverage, and signage placement. Use interior design apps for planning.

[Image: An image shows a clothing rack with various garments hanging, suggesting a retail environment.]

Here are some things to consider:

Frontage

Does the storefront have a sidewalk for walk-ins? Is the frontage large enough for curbside pickup? How much can you decorate the outside?

Signage

Check if signage is included and customizable. Some spaces may have existing branding that could obscure your shop, while others may not allow signage. Determine your signage needs and how customers will find you. For fairs, ask to be added to maps and if you can place a sign.

Condition and Cleanliness

Landlords usually ensure interiors are pristine, but exteriors can be susceptible to elements. You may be responsible for cleanliness. Use a broom, bring plants, or clean windows.

Key Elements for Success

Lighting

Lighting guides customer mood and experience. Spotlights can highlight products and direct attention. Consider how lighting can create different atmospheres, from a nightclub to a fashion runway.

Visual Merchandising

Effective merchandising influences customer time spent in-store and their choices. Decide on product placement, arrangement, color scheme, music, and grouping.

Giveaways

Food and beverages, like lemonade or coffee, can draw people. Check with organizers, but offering free refreshments can significantly increase foot traffic.

Build Your Mailing List

Carry momentum after the pop-up by building an email list. Incentivize those who didn't purchase to do so later. Use a sign-up sheet or Shopify Email. Consider a raffle with an upscale product as a reward to encourage email sign-ups.

Conclusion

A pop-up shop is more than just quick sales; it's a powerful part of your brand strategy for customer acquisition, retention, testing ideas, gathering data, and building buzz. Pop-ups offer an affordable entry into physical retail for digital brands wanting to connect with their community. While online channels remain key, physical retail fosters long-lasting customer connections. Use these examples to plan and execute your next event creatively and learn from your customers.