Inside

Staying top ofthe pop-ups

For what looked like a fad, pop-up concepts have certainly proventhemselves. While a pop-up store may be here today, gone tomorrow, theidea is certainly not and from first being identified back in late 2003, pop-upshops have gone from a perfect example of temporary installation to a fixtureon every marketing-strategy-to-do list. The pop-up mantra now includespop-up stores, pop-up units and pop-up retail, through to the first pop-upmall and the term has widened to include a wide variety of temporary brandmanifestations that add an element of surprise, urgency, and must-have/must-see to shopping, dining, entertainment, lodging and exhibiting.

Retailers and brands have incorporated technological innovation and haveused pop-ups to reach out to a wider audience with socially responsiblemessages. In fact pop-ups have even been used to help regeneratecommunities hit by natural or economic problems, providing as they do quickand flexible ways of injecting new stores and services to a location.

So wide are the approaches available that we have restricted ouranalysis specifically to stores rather than street and public realmmarketing promotions.We’ve talked to four of you who shared with ‘MOREVision’ their view in exclusive interviews - Together with key data, useful linksand must-see video, it makes the sixth issue of MORE Vision.

Joanna Lumley OBE and Marc Bolland (M&S CEO) at the launch of'shwopping'. Using 5 minutes worth of UK clothing waste - 9513pieces - M&S transformed a London street to show how it plansto give old clothes a future through its new fashion initiative.

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MORE+ Vision n°6June 2012

• The trend briefing • Interviews:Marks & SpencerAMF FastigheterMy Pop Up StoreCushman & Wakefield

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Where does the trend come from ?*If ever a concept coincided with a number of industry and consumer themes then pop-upsare it. Pop-ups fit perfectly with the entertainment economy, the experience economy andthe surprise economy. The ability to surprise, entertain and perhaps even educate consumerswith temporary 'performances', guarantees exclusivity because of the limited time span andcreates a sense of now or never. Pop-ups also provide brands with an opportunity to engagedirectly with their customers in a way rarely available through conventional retailing.But it is not only about design. In more recent years, real estate agents and shopping centreowners have been able to make better use of vacant properties, making it easier and moreattractive to set up pop-up concepts in some of the most prestigious (and high-traffic)shopping areas around the world.However, with the surprise factor for consumers greatly diminished, expect to see brands tofocus on more outrageous manifestations and a shift in their attention from merely selling orintroducing new product lines to turning pop-ups into centres of learning, havingconversations with customers on retail and wider issues.

We’ve chosen four drivers behind the current development ofPOP-UPS:1. STAYING FRESH: How brands can keep their cool beyond the surprise factor.

2. AFFORDABILITY:Pop-ups continue to deliver great value in a high void era.

3.COMMUNITY: Developers and retailers look to deliver change through pop-ups.

4. SHARING: It is not always about buying but also about broader engagement.

The trend briefing

*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights

and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

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After nine years as a concept, the simple actof opening up a pop-up is no longer enoughto reach out to a savvy consumer base, seek-ing fresh ideas and new experiences. Thepop-up concept has evolved to include in-creasingly subtle and immersive environmentswhere often it is selling the brand rather thanproducts which has become the main focus.Multiple channels are also being introduced,enabling retailers to create virtual pop-upshops which still rely upon location to createthe buzz and which help evoke a ‘club’ feel forthose that participate in the promotion.

Opportunity 1: Staying fresh

Opportunity 2: Affordability

*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights

and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up

Selected linksIn April 2012 Mini inaugurated its first pop-up store at Westfield Stratford City, London,marked by a car suspended on the mall ex-terior. Open for 12 months only, it featuresthe cars and Mini merchandise “bringing themuch loved British car brand…to a retail set-ting which is completely removed from theestablished car showroom environment.”The Latest Scoop opens stores for fivemonths out of every year, operating clothingand homewares stores across a variety of lo-cations in its key trading months April to Julyand November to December. The stores areadvertised through social media and emailsand then traffic is driven by word of mouth.To celebrate international fashion magazineVogue’s Fashion’s Night Out event in Septem-ber 2011, luxury fashion e-tailer Net-a-Porteroffered consumers an offline experience at lo-cations in New York and London. The pop-upstores were actually graphic window displayswhich could only be viewed using “The Win-dow Shop” app. Shoppers and prize-winnershad their items delivered the next day via thee-tailer’s premier delivery service.Late last year Debenhams launched theUK's first virtual pop-up store in cultural lo-cations across the country, allowing cus-tomers to virtually try on ten party dresses.The hotspot in London was Trafalgar

Square, where shoppers armed with aniPhone or iPad2 could see ten party dressespop up around the iconic square by scan-ning the area using their camera function,until they discovered the ‘invisible’ dresses.Virtual stores also appeared in Glasgow,Birmingham, Manchester and Cardiff.

4More links on trendwatching

Selected linksRed 5 is considering a new property strat-egy that would mean the UK gadgets re-tailer replacing the majority of itspermanent stores with pop-up shops to re-duce rental costs. The retailer is proposinga deal in which Red 5 would move into a va-cant space under a temporary contract. Ifthe landlord was approached by a retailerinterested in the spot on a permanentbasis, then Red 5 would relocate within theshopping centre. When Dior Homme began renovation andexpansion in New York the company de-cided to open a temporary store in SoHo,which will remain open until September.Highlights of the pop-up shop include acentrepiece light sculpture by artist RobertMontgomery, which was chosen by DiorHomme designer Kris Van Assche.The Shops of Grand Avenue, Milwaukee isto allow individual retail spaces to becomeshared, collaborative space at one end ofthe mall. Ten vacant spaces are available onthe second floor of the New Arcade build-ing and parties interested in renting a por-tion of one of the spaces will be interviewedby the development team. Leases are avail-able for three, six or 12 months, withmonthly rents as low as $100. Sea container crates have been an unlikelysource of inspiration. The European pre-

mier of such a concept by Alan Kalkin andcoffee maker Illy took place at the 52ndVenice Biennale with Push Button House,while Motorola is another to create a cratestore. More recently Boxpark opened inShoreditch, London, billed as the world’sfirst pop-up mall.

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What does the temporary manifestation of aretail brand bring to a destination?

How can a landlord engage with technicalinnovation that requires a sense of place?

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How do you see it?

Is there a risk of more retailers shifting to apop-up store strategy?

How can a multi-party retail outlet beeffectively managed?

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Selected videoTarget, Toronto

How do you see it?

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Pop-up stores fulfil practical as well asconceptual roles, often allowing a landlordto fill vacant space while seeking permanenttenants or attracting a retailer which wouldnot otherwise have the financial muscle totake space. While on the face of it this amutually advantageous approach for bothparties, it is also one which must beperformed with care. Well chosen partnerscan enhance a retail destination buttemporary lets to tenants who do not bringadded value to an environment are apotential turn-off for shoppers.

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Selected videoThe Airwalk invisible pop-up store

every 2 months: 1 consumer trend briefing • 4 retail real estate player’s viewpoints • online follow-up

*Source: trendwatching.com a London-based, independent trend firm, scans the globe for the most promising consumer trends, insights

and related hands-on business ideas. Its free monthly Trend Briefings get sent to more than 160,000 business professionals in 180+ countries.”

Pop-up stores may sound like an unlikely sourceof regeneration but they are increasingly beingused as a quick and cost-efficient way of spark-ing social regeneration or to help spreadbroader social welfare messages. Pop-ups haveacted as catalysts for locations impacted by eco-nomic issues or by natural disasters, while majorretailers have also taken charitable causes on theroad, highlighting social inequalities or commu-nity action programmes. These activities, oftentemporary in nature, lend themselves entirely tothe transient and mobile nature of pop-up initia-tives, helping to reinforce key messages.

Just as retailers are finding more innovative waysto converse with their consumers, so pop-upsare evolving to become informative andengaging for those who visit. Such an approachallows retailers and destinations to expandhorizons and immerse visitors in experienceswith an educational or well-being component.Such an approach can also be linked withpromotional or themed activities or to enhancethe brand equity of the hosting company. Thetemporary nature of such offers also reinforcesthe must-see nature of a cultural event andprovides another strong opportunity to definea sense of place.

Opportunity 3: Community

Opportunity 4: Sharing

Selected linksMarking the fifth anniversary of Plan A, Marks &Spencer opened Shwop, a pop-up near BrickLane in London, in April. The pop-up shop isaimed at kick-starting a ‘buy one return one’ pro-gramme for used garments and encouraged vis-itors to donate garments to be reused or recycledby Oxfam, M&S’ partner for the programme. Setup in collaboration with the London College ofFashion, the store was open for two weeks.

Miniature DKNYoutlets popped up all over Man-hattan late last year as the fashion retailer part-nered with City Harvest for three days to bring asmall sampling of its wares to locations in the Flat-iron District, Columbus Circle and the Meatpack-ing District. Customers could try items on but hadto make their purchases online. For every 100 peo-ple who entered the pop-up shop, DKNY do-nated to the food charity.

In Christchurch, New Zealand, Re:STARThas usedshipping crates to form a temporary retail centreon the site of the Cashel Mall destroyed in Febru-ary’s earthquake. Re:START created a pop-up proj-ect featuring 27 shops, including a variety ofretailers and two cafés. Mayor Bob Parker said themall would restore pride in the city, saying “is thebeginning of our city making the most extraordi-nary comeback”.

popuphoodwas launched in December 2011 toencourage urban renewal in Oakland, San Fran-cisco. The project started in the historic neighbour-hood of Old Oakland, filling five previously vacant

store fronts with five new shops, including a jew-eller and art gallery. The focus is to provide a vi-brant shopping area and give local artists,designers and retailers the opportunity to open forsix months, rent free.

4More links on trendwatching

Selected linksSamsung – now the world’s largest mobilephone manufacturer - has supported a globaltelevision and brand communication campaignfor its Galaxy S III launch with its first ever “Pins”– branded, glass pop-up stores that will show-case all of its devices, demonstrated by a prod-uct team to provide visitors with user informationin major towns and cities across the world.Earlier this year, as part of its Words WordsWords concept, the Selfridges Ultralounge inLondon was transformed into a library. Packedfloor-to-ceiling with books, the library was pro-moted as the perfect place to read old favouritesand discover new ones. Visitors could also listento a range of literary classics, use an old-fash-ioned typewriter or enjoy a game of Scrabble onthe interactive screens. Launched in 2009, Kitchen Guerillas is a Germanorganisation which takes over an eclectic rangeof locations across Europe such as restaurants,stores, empty warehouses, hotels and other sitesto offer a pop-up food experience for guests. Di-rections to Kitchen Guerilla locations are sent toparticipants on the day of the event for a menucooked using fresh, local produce.Targethosted its first pop-up store in Canada forone-day only in Toronto on 23 February 2012.Guests were greeted by designer Jason Wu and

Target Canada's John Morioka for an exclusiveglimpse into Target's design history and thechance to shop the coveted Jason Wu for Targetcollection. Target donated an amount equal to100% of the sales from the event to United WayToronto. The US general merchandiser is open-ing its first stores in Canada next year.4More links on trendwatching

Can pop-ups provide something socially usefuland which enhance the retail offer?

What issues or causes would dovetail with thevalues and activities of your business?

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How do you see it?

How do you see it?

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Selected videoDetroit pop-up shops

Share your view and join inthe discussion!

Share your view and join inthe discussion!

How can you engage visitors in a way which isalso commercially relevant?

Could a pop-up support your promotionalactivity?

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Selected videoCoca Cola, Israel

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Retailer: Marc Bolland, chief executive,Marks & Spencer

Why set up a pop-up shop at the TrumanBrewery, East London for the shwoplaunch?"In our strategy, the shwop campaign isbeing run permanently in every Marks &Spencer store in the UK, enabling customersto drop off old clothes in boxes within thestores [from where they will be recycled orredistributed by charity partner Oxfam]. Butfor the launch it was important to raise theawareness of what we are doing and weused a pop-up strategy because you have tomake an impact.”

What is the objective of using a pop-upstore?"We hoped that by launching a pop-up storethat within 24 hours this word 'shwopping'might be added to the British language. The‘Shwop Lab' was created in collaborationwith the London College of Fashion's CentreFor Sustainable Fashion to explore the futureof fashion through a series of collaborations

with the UK's leading lights in sustainablefashion and design. Although it only operatedfor two weeks, this store was not designedas a stunt. This concept is not intended assomething for the short term. The objectivewas to make disposable fashion a thing ofthe past.”

How did the strategy communicate theconcept?“We want to get back one garment for everyone we sell. For us that's 350 million a year.It is a big number but I believe we can helpfoster a ‘buy one, give one’ culture on thehigh street. We have combined the pop-upstore, which was transformed into a clothedstreet using 9,513 discarded items of cloth-ing – the same amount thrown away everyfive minutes in the UK - with a Facebookcampaign and with the recycling boxes lo-cated in our permanent stores.”

Why launch a shopping centre with somepop-ups?“You have to consider pop-up stores as partof the mix. As part of our strategy at MOODStockholm we have brought a lot of newbrands to Stockholm, so as a consequencewe introduced the pop-ups to deliver andemphasise the change in approach that wewere trying to get across to shoppers. Theyalso allow us to adapt and change to providethe offer our catchment wants. No matterhow careful the planning, consumer demandwill change and what a pop-up element pro-vides is flexibility.”

What is the objective of using pop-ups ina retail destination?“I think that landlords need to consider theircentres in terms of place making, rather thanas simply a collection of stores. This is par-ticularly important in an era of e-commerceand when restaurants and leisure have be-come such an important element ofschemes. In my opinion having a fixed set of

retail tenants is not necessary, the pop-upsand temporary stores provide the operatorwith the chance to respond to shopperneeds or perceptions of what might be miss-ing from a centre.”

Why not deliver diversity through the ten-ant mix?“Pop-ups perform a different role in evolvinga shopping space, so in our case we decidedfrom launch that a number will be retained,constantly being revolved to bring new ideasto our destination, which is the real point. Forlandlords pop-ups provide the opportunity tosee how their centre operates and to bringin new or different retailers to satisfy visitorneeds as they develop and change. But it isalso vital to choose temporary stores whichadd something new or different to a centreand which sit with the overall objectives ofthat centre.”

Owner & Developer: Karolin Forsling, head ofretail, AMF Fastigheter

@KarolinF

@marksandspencer

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Pop-up store specialist.Creation & promotion:Adrien Bisseliches,associate director, My Pop Up Store

How do retailers and brands determinewhen to use pop-up stores?“Usually pop-up stores are a tool in a wider strat-egy, with the approach needing to match thecore objectives, which helps identify the mostsuitable kind of pop-up store. For retailers it isoften an issue of boosting their presence by sea-son, or event, but it can also be a way of testingnew retail spots or new retail displays/tech-niques before implementing them in otherstores. For example, Pyrenex, a French manu-facturer of winter jackets, has run a pop-up storein November and December for the past twoyears. For brands, the issue is either about com-munication for the launch of a new product - get-ting the end-user to live an experience theycannot get in a traditional retail store - or to testretailing. As an example, Parrot, a French high-tech company which operates in three very dif-ferent areas, used pop-up stores to expressitself as a single brand to give the public an in-sight into their brand DNA and expertise.”

What is the optimum length, location andinvestment for a pop-up store?

“There are three main possible objectives for apop up store. First is pure communication to-wards a very specific audience, in which casethe duration will be short (a matter of days) andis a PR type of investment. Second is the show,an event towards the general public or targetedcustomers, and in that case the duration can becounted in weeks, to let public awareness growand to give consumers a chance to come. Itwould be an ‘event’ kind of budget. Finally, youhave retail purposes and in this case the invest-ment has to be repaid through sales and oftenneeds a couple of months.”

What type of content works well withconsumers and is effective within a shop-ping centre?“Consumers love what entertains them. Theylove to be surprised and to be part of theshow. That is especially true in shopping cen-tres where increasingly they come withstrong expectations of ‘retailtainment’, know-ing that they can buy the same goods online.”

What are the main drivers behind usingpop-up stores?“Pop-up requirements tend to fall into twotypes: those which are essentially promo-tions and might only last a couple of days;and those which are temporary retail letswithin shopping centres. In the first case thelandlord might make an event charge ormight choose to make no charge, valuing thepromotional benefit to the whole centre. Theretailer will be effectively using it as a mar-keting tool. In the second case the space willprobably be a void and the landlord will ne-gotiate a very favourable rate for the tenant,allowing for the capital expense a retailer orbrand will need to make and the temporarynature of the deal.”

How do the leases work in both cases?“Typically in the case of a pop-up store let, alease will be for a maximum of 12 monthswith break clauses at three months for bothparties. The key is that the lease needs toprovide flexibility for everyone, with good

break clauses built-in and priced to reflect thetransitory nature of the agreement, which ismost likely to be in a secondary schemewhere the landlord might be trying to fill avoid or preparing for some asset manage-ment development. In promotional situationsthe contract will be a licence, which is amuch shorter legal document.”

How do the parties determine the finan-cial equation?“It really depends on the motivation. For alandlord filling a void, producing some rev-enue and introducing a new retailer has a lotof potential benefits, especially if not a primeshopping centre. For a retailer there is thechance to promote the business within anew environment and for some it may betheir first test in a shopping centre. For oth-ers, like luggage retailers, temporary lets andthe low shop-fit cost have become a familiarpart of their strategy.”

Broker: Duncan Gilliard, CentralLondon retail, Cushman &Wakefield

@MyPopUpStore

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CreditsContributors: Mark Faithfull • Jean-Marc AndréAcknowledgement: MORE+ Vision wishes to thank the interviewees for their kind participationDesign: Frédéric Beauseigneur – Reed MIDEM Publishing Dept.

Sources: “trendwatching.com, a London-based, independent trend firm, scans the globe for the mostpromising consumer trends, insights and related hands-on business ideas. Its free monthly Trend Brief-ings get sent to more than 160,000 business professionals in 180+ countries”

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