You've seen them popping up in October, weeks before Halloween. They also show up in plenty of time for Christmas season. These temporary stores are pop-up shops that fill in vacancies at retail centers, shopping mall spaces and kiosks, and shuttered grocery stores and restaurants.
For shopping center managers and owners, it's an easy way to solve three problems: fill vacant spaces, collect rent, and increase retail security. Some rent is always better than none. Plus, it builds up the crowd and people like places that look busy. They don't feel as safe visiting places with empty parking lots and stores and the neighbors appreciate it when all the stores are occupied.
Pop-ups can increase revenue throughout the year, not just during the end-of-year holiday season. Some tax pros open a shop to help clients prepare for the big day on April 15. Start-ups test their products, messaging, and ideas with a pop-up. It gives them a chance to get close to the customers and interview them to get their thoughts.
Another pop-up shop worth adding is the traveling specialty shop. These pop-up shops tour all over North America as their loyal fans will follow them anywhere. Think exclusivity. When customers know they can't get something anywhere, they will come when the opportunity presents itself. For example, the Hello Kitty Café truck always gets long lines wherever it goes. Lines start forming before the café opens and last until the final sale or when they sell out. These special pop-up appearances tend to run a day or two, but the right retailer can deliver a huge crowd. That huge crowd could also shop at other stores while at the shopping center.
Common pop-up store types with very short leases include yoga and fitness clothing, donuts, and handbags. With stores like these, landlords don't have to worry about adjusting the space. These retailers hop in and do their thing. The length of leases varies. Most tend to run month-to-month. Often, the rent is lower than those with traditional leases.
Companies including pure e-commerce like Amazon have set up a pop-up to give passers-by a way to interact with their products. According to the U.S. Census, e-commerce comprises only 9.8 percent of sales in Fall 2018. Customers still prefer brick and mortar stores where they can browse and touch products.
Some shopping centers fill vacancies with medical clinics. The key is to fill the space, collect rent, and prevent the eyesore of having empty spaces.
Retail center managers and owners interested in bringing in pop-up shops can check out Popupinsider.com for more information. They have a directory where property owners can list their properties for free.
Wouldn't you say it's worth coming up with a plan for short-term and very short-term leases? It means increasing income, filling empty spaces, bringing in a crowd, and making the neighbors happy.
Whether you have a full occupancy or a partial one, security remains an important part of a shopping center's success. When customers see cameras posted in the parking lot and stores, they feel more secure and are more likely to stop by.
Take a look at what our security operators spotted at this shopping center after hours.
If you would like to learn more about shopping center security, please contact us.