Pop up Shop
Department stores and other tenants struggle to combat the growth of online commerce. Big shopping centre owners are dedicating more staff and mall space to the short-term stores (Pop Up Stores), which once were seen only as seasonal business opportunities to drive foot traffic during holidays or transitory fillers to address temporary vacancies.
Now landlords increasingly view such retailers as necessary fixtures as they seek to minimise vacancy rates and keep cash flow stable, in some cases offering a rotating cast of pop-up stores virtually year around.
By giving more leasing flexibility and offering to help design a concept for the physical space to upstarts that might not be able to commit to five- or 10-year deals, mall owners are hoping to refresh and enliven their properties. Pop-up stores that introduce local brands, perform demos and offer shoppers an elite selection of products or allow them to interact directly with designers can help drive traffic to other tenants.
Some mall owners are allocating about 5% of their leasable space to house such transient tenants, by building a “white box” pop-up store with a plain interior that can be used by the next tenant. These boxes are typically smaller than regular stores, at around 1,000 to 1,500 square feet.
For this special type of tenancy, Predixit offers solution to quickly setup performance measurements tools that go along the seasonal nature of the business. In some cases, the intended goals of the pop-up store is just to showcase their innovative products and their success can’t be measured with revenue figure but rather with customer appeal. Predixit suggest to apply its costumer behaviour tool to measure and demonstrate success.