Experiential retail is hot right now and it's not just fashion and beauty brands leading the way. A plethora of companies are announcing pop-up stores to capitalize on a full-sensory experience. There are the tech companies (Facebook at Macy's, Google pop-up), the lifestyle brands like Goop, e-commerce companies like Casper, even communities like HeyMama are getting in the retail game.
There is value in these retail extensions: it builds brand awareness, engagement, and can allow you to test a new revenue stream. Temporary retail stores are expected to generate $80 billion on an annual basis, according to Storefront.
But there's also a downside. There is an over saturation of retail experiences — there seem to be pop-up stores for everything. There are high expectations to deliver optimal pricing, unique services and products, and a fun experience (according to more than 30 percent of respondents in a PopUp Republic poll). And it takes a large investment to get it right.
So is it worth it for you? If you're already delivering well to your client and collecting good data you probably don't need to invest in a pop-up store. Adam Pritzker, of Assembled Brands, makes the argument that a successful physical store needs to be about building customer loyalty, not one-off sales or sampling.
"I think the mistake a lot of people make is that opening a popup gets attention, and thinking that's all you need. The reality is, what we've noticed looking at the data is that opening a store, or a store front is great if people purchase more than one thing, and the second time they purchase, they're purchasing directly from you online. If somebody is going in, they have no loyalty, they're buying once and they never buy again, that pop-up strategy does not work," he said.
Before you devote time and energy to creating a complete unique and temporary retail experience, assess the potential ROI of your customer acquisition. That's what's most important. Ask yourself these questions to help decide:
- What are my goals and vision for the pop-up?
- What would it cost to deliver on that?
- What does success look like? Buzz? Sales? Data collection?
- How do we measure that success metric?
Original article can be found here: https://www.retailcustomerexperience.com/blogs/why-some-retailers-dont-need-a-pop-up-experience/