Monday, June 06, 2016

The Future Of Pop Up Stores

Pop Up store is for sure a very important trend going on right now in retailing. The Ecommerce boom has created new needs in terms of commercial real estate, and therefore the pop up store concept allows malls to have a flexible solution to fight against store vacancy. 

I read this very interesting article about Pop Up Store. Indeed, the article questions the future of pop up store. I agree with the article, pop up store has blossomed in a market in crisis, benefeting from low renting prices. And it seems landlords are eager now to raise rents.

But I believe actually pop up stores will be fore sure THE trend of commercial real estate:
  • First, pop up store will become a real business. It will structure itself, better master the concept, in order to lower the cost of implementation, which will ultimately raise profitability. I believe that the savings that could be leveraged from mastering the concept are far more important than a raise of rents.
  • Secondly, I believe that the real estate landscape will never get back to what it used to be. Digitalization will hit new businesses, Ecommerce will still grow, and will lead to more store shutting down (in a small proportion but still). Therefore, pop up store business will be a key to keep profitability and malls attractive.
  • Thirdly, I believe we will see retailers I believe that will have a 100% pop up store business. This will be a big thing, you shall watch.