The rise of the pop up shop stems from its appeal to a diverse range of tenants. Whether the tenant is an individual with a great idea, an established business with a new product or an online company that wants to create an engaging and targeted customer experience, breaking down the digital divide between the online shop and the real world consumer - it seems that the pop up shop will deliver on the tenant’s needs. And let’s not forget to mention the ever expanding thirst for pop up bars and restaurants based in both traditional retail spaces as well as in quirky venues, there appears to be no end to the appeal of the pop up.
There are many practical considerations for a tenant that wants to use a pop up space. It seems timing is almost always top of the list. The dynamic culture that surrounds the pop up store means tenants are unwilling to enter into lengthy negotiation on lease terms for what may be a very small window of opportunity. Recent changes in planning legislation have also helped increase the popularity of the pop up.
Other practicalities which can hamper a tenant’s plans are the facilities which the landlord will make available. Established pop up venues like BOXPARK in Shoreditch offer a Wi-Fi connection as a standard service, whereas others require the tenant to do the leg work in getting set up. Other factors such as point of sale systems and stock management are all factors that tenants need to consider when venturing into a pop up deal, and the landlord who is ahead of the curve on these issues is able to cater to the tenants needs.
The benefits of the pop up are not just for the tenant. Landlords who are equipped to deal pop up letting are able to limit void periods, and maintain the vibrancy of their premises, in turn ensuring a steady rise in market rental value. However, landlords must be careful not to inadvertently give security of tenure but with the right legal advice, this can be easily avoided. Although many pop up shops are let on very short terms, increasingly, pop ups are being granted for extended periods.
Although the pop up shop is still a relatively small sector of the retail market, they are on the rise. Statistics from the CEBR indicate that there are approximately 10,500 pop up shops across the UK (most of which are in London and the South of the UK) employing 26,200 people generating over £2.3billion in turnover. While the value of pop-up retail sales increased by 12.2% over the last year, the value of total UK retail sales (excluding fuel) increased by just 1.1%. The pop up is here to stay and offers fresh opportunity to both landlords and tenants. The pop model is expanding fast, and edging into traditional retail spaces as well as into traditional retail markets.