Small Business: Benefits of Pop-Up Shops

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Many entrepreneurs find themselves in a position where they have a great business idea, but just don’t have the resources to get it off the ground.

Pop up stores, also known as temporary retail, are a great way to give your idea a go while building brand awareness without the cost of leasing permanent business premises.

Pop-up shops are growing in number every day. They are popping up on the street corners, shopping centers, airports and more, as entrepreneurs start realizing the benefits of temporary retail.

They range in a variety, from modular retail establishments to those that are accommodated in shipping containers.

So if you’re considering taking first that step into physical retail, here are several benefits in setting a pop-up establishment.


Pop-up stores have become a popular offline business strategy, due to their high impact while on the other hand, being cost-effective. They are usually temporary and smaller than conventional retail stores, so the cost of rent is always lower.

This is especially beneficial for new businesses that still lack funds to lease a more traditional retail space because they can always close down their temporary location if sales are low.

Online and offline customer engagement

If you own an online business, pop-up stores are an ideal chance to interact with your customers in the real world. Today, online and offline interaction with customers is coming close together. Therefore, businesses are using the multichannel sales strategy to engage shoppers.

As shopper’s behavior evolves, multichannel sales are more crucial than ever. Today, only 7% of consumers are online-only, while 73% use multiple channels in their shopping experience.

So as we can clearly see, it is no longer feasible to be online-only or in-store only.

Demo products

A great benefit of pop-u stores is that they allow customers to take part in product demonstrations and also allow retailers to answer questions on the spot. For instance, brands that deal with food products, often use portable exhibition counters which allow customers to taste samples of their product. Brands can really benefit from this face to face interaction, and on the other hand, customers can learn more about products and can get immediate answers to any crucial questions they may have.

Tenants for empty spaces

Building owners are aware that empty storefronts don’t bring any rent and basically they are losing money. Often they are not ready to lower the rent just to fill the space in order to avoid being stuck in a long-term lease with a bargain price. This is where temporary retail comes in.

By renting space to pop-up stores, building owners have a chance of bringing in some money in the short term and on the other hand, they keep the possibility of booking the space to a higher paying tenant in the future.

Test out new markets

As said before, pop-up shops require less financial dedication. Because of this, they are ideal for exploring the waters in new markets. Whether you’re an online-only merchant who wants to dive in offline sales or just interested in expanding your presence in a new city, pop-up stores are a low-risk way to gain customers.

When testing out new markets, pop-up stores first build brand awareness before committing to a full storefront. This way brands can root themselves in a community, which will help them find target customers in the area. 

Spontaneous purchases

The temporary nature of pop-up shops usually creates a sense of urgency among consumers to buy at the spot. As opposed to traditional retail establishments, pop-up stores are usually presented as ‘’limited edition” items that need to be taken advantage of at the moment or regret not doing so in the future.

A sense of excitement

Sometimes when a lot of stores sit empty for a long time, a neighborhood can start looking unhappy and neglected. When new stores appear and disappear every month, a feeling of constant change is created which makes the local business district feel fresh and energized.

These neighborhoods become known as places where there is always something new going on and this vibrant feel attracts visitors to the area. This is good for the already established local businesses and for the pop-up stores as well

Local economy strength

Although the nature of pop-up stores is that they disappear after a few weeks, some become permanent local businesses. Logically, more businesses attract more customers and this positive cycle keeps the local economy strong. Basically this is good news for lives in this area. In the end, consumers have more places to shop, there are more jobs available, the value of property increases and overall the town becomes a happier place to live.

How to host a pop-up event?

 Planning a one-time pop-pup event is an achievable project and it can be the start of making pop-up shops a big part of your town’s business scene.

Here is a brief guide of the process:

  1. Find a location. Look for underused or empty spaces in your town such as vacant buildings, oversized parking lots and public spaces such as parks. Locations that are big enough for several pop-ups and also have lots of foot traffic are ideal for these events.
  2. Community support. Sponsors are vital in promoting your pop-up event. These include local businesses, homeowners, community organizations and local governments. Present your ideas at a neighborhood meeting and ask local residents for opinions on what they would like to see on a pop-up event.
  3. 3.              Get permission from site owners. Wherever you are planning an event, you will always need the owner’s permission to use the site. If you’re seeking a vacant storefront, talk to the building owner. Some owners are willing to let a pop-up store use their space even for free.

Final word

As we can see there are many benefits of pop-up shops, from bringing the feeling of energy to streets and changing the neighborhood to creating permanent local businesses that strengthen the local economy. Support pop-up stores and you will make your town a happier and healthier place to live.

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