Walk through any major city and you will find at least one temporary shop front, capitalising on the perception of exclusivity and appeal that comes with any fleeting opportunity. Brands big and small in major cities all over the world have been opening Pop-up shops over the past decade – and this retail trend is here to stay.The magical holiday shopping season is no exception to this savvy strategy, and presents the perfect short term opportunity to experiment with a pop-up shop. There are hundreds of reasons as to why November to January are your best bet to pop-one up, but let’s focus on the power of these 3 reasons why your business should open a holiday pop-up.
1. Holiday Foot Traffic and Sales
Let’s zoom in on one major city here to start – just for numbers sake. New York City was visited by a record breaking 62.8 million tourists in 2017, and according to NYC & Company’s Travel and Tourism Trend Report, over the past 7 years The Big Apple has seen it’s highest percentage of tourists arriving in Q4 of the year (October, November & December) despite the cold and snowy New York weather.
According to Forbes, holiday purchases will exceed US$1 trillion nationwide this year, as the economy grows and household incomes increase, and clearly as the most populated city in the USA, NYC can expect to see a lot of those sales directly from their storefronts.
Additionally as mentioned in Deloittes 2018 Holiday Retail Survey “consumers indicate their average holiday spend will increase from US$1,226 to US$1,536 per consumer”. These stats alone are enough to convince any retailer large or small to consider a pop-up shop in NYC this year.
Although these numbers are specifically for NYC, many western countries, and more increasingly, countries throughout Asia, show the same peak in foot traffic and retail sales thanks to Christmas gift shopping.
2. Low risk
Opening a storefront is risky business. You invest your money in the structure, decoration, inventory, staffing, signage, rent or mortgage and display material indefinitely. We aren’t saying there is no good in this form of retail by any means, but why not profit from seasonal locations? Why not enjoy short-term commitment of opening a pop-up shop, just to dabble in the foot traffic market for seasonal inflation – Particularly around the holidays.
A pop up shop presents the opportunity to experiment with your advertising, product lines, and sales tactics. For a temporary fixture, this display can single handedly increase your brand awareness, and be different from your regular online brand themes if you are an online retailer. Try it on for size and see how it’s received.
Additionally, it’s important to keep in mind that with a pop-up there are few expectations from the foot traffic consumers. You benefit from the flexibility of a temporary shop – opening on the days you prefer, supplying the products you desire, and creating buzz around those exclusive days you will be available – you make the rules, boss.
3. Create an Experience
Opening a pop-up shop any time of the year is an exciting way to advertise your brand, and provide an in-person experience, but opening one specifically for the holidays might give you that strategic advantage in creating a memorable experience for your customers, in turn increasing brand awareness.
Decorate, feature holiday music, and even holiday themed products if you desire. The holidays are an easy time to create a ‘vibe’ that people can experience and associate that pure childhood like ecstasy with your brand. By offering a speaker, a workshop, or other unique experiences for your customers, it gives buyers a chance to first handedly engage with your brand.
You are also providing your brand a chance to reach new consumers who may not have engaged with your brand online before, accessing both ends of the market. Americans and Europeans still spend over 90% of their retail shopping budget in-store. Christmas gift shopping in brick-and-mortar shops is a long standing holiday tradition amongst many families, all for the experience of it. There is something more meaningful behind walking into a store with a purpose and someone in mind, and leaving with something to give – because well, isn’t that what Christmas is about? You are more likely to improve your audience perception and brand loyalty by offering an in-person shopping experience surrounding a highly emotional holiday.