The pop-up store trend, while not new in South Africa, is still one that few retailers are taking advantage of.
Mark Souris, managing director of Periscopic Masingita, a commercial property development and management company, speaking to EProp, a commercial news outlet, said the trend is however picking up in the country among entrepreneurs and small business owners because of the slowdown in the economy, and small businesses struggling to keep up with escalating rent prices in retail centres.
Pop-up retail shops are temporary stores, which not only allow retailers to escape the costs associated with long-term rentals, but also gives brand exposure, and allows retailers to test out their product in a new market.
Ice-cream brand Magnum last year opened up the Magnum Pleasure outlet in Rosebank, Johannesburg. The store, which was open for over two months, made revenue of about R40 000 a day, according to a TimesLive report.
“Pop-up shops are an ideal way for entrepreneurs to sell and promote their business and by doing so, it allows them to gauge whether or not it will have long-term benefit in the market”, said Souris.
Aside from low overheads, the pop-up concept can be particularly useful for new business owners and those looking to expand into a new area, he said.
And it’s not only entrepreneurs and small businesses that are in a position to benefit from the trend, Souris also says shopping centres can also enjoy its advantages.
“Instead of having shops that are vacant, landlords are placing pop-up shop tenants, also known as nursery tenants. This allows the centre to ascertain if the products or services that are being offered are suitable for their target market, and if it is worth offering the nursery tenant a permanent lease agreement”, he said.