When a businessman is contemplating starting a retail business, he requires space to set up his store. He can either purchase or lease retail space. Since businessmen like to keep their investment low when they start a business, they prefer to lease store space. In the initial stages, it is beneficial for a retailer to start on a small scale. He has the option of introducing his products at different locations in small quantities through pop-up stores.
These are shops that pop up out of nowhere and suddenly disappear after a short period of time.
Benefits of these stores to retail start-ups:
- They require minimum investment as they are available at low rentals.
- They have the ability to draw customers because their sudden appearance raises curiosity in the minds of the customers.
- They are apt for promotions.
- They can be used with minimum structural changes.
- They are ideal when a retailer wants to test the response of the market to a new product.
- The location of the store can be selected so as to gauge the performance of the business there. This will enable the retailer to determine the suitability of the location for his start-up.
Once a retailer decides on setting up a pop-up store, he should look for a suitable location for one. Location of the store should be given due consideration. It is best to choose a space in the vicinity of a business that complements the business of the retailer and sends out the same lifestyle message.
Some popular locations for pop-up shops are:
- Galleries and Event spaces: These spaces have a certain charm associated with them because of their open space and minimal set up required. They are ideal for products such as women’s fashion, jewellery, accessories, etc.
- Booths spaces in events: If a businessman is looking for a location for a pop-up store, he should be on a lookout for upcoming events. He could get space in a vacant booth to set up his store. A booth space or a kiosk can also be rented in a shopping mall.
- Vacant space in a shop in a shopping centre: A store might be having extra unused space which they might be willing to rent out for this purpose.
- Vacant street level space: These are the most popular locations for setting up a pop-up store.
By introducing his products through pop-up stores, the businessman is in a better position to decide about the location of his retail store, and what the customers expect from his product. This helps him plan his business better.
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