After the long hit of the Covid-19 pandemic, more and more retailers have switched to a more agile space rental strategy. According to Vogue Business, short-term Pop up shops have long served as testing grounds for brands to experiment with and tap new audiences. But what are the pros and cons of short term retail spaces for landlords and retailers?
The handy tool for marketers
Pop up stores are short-term intermediaries or temporary retail stores set up in one place for a limited time, often just a few weeks. The marketers can use this as a risk-free way to test their products and figure out if they are worth taking the time to invest in.
Competing for consumers' attention is always a massive challenge for marketers, so a good strategy for them would be to lease space in different markets to ensure they are not missing out on potential customers. The Swedish innovation-leading motorbike company, Vässla, has been continually using Pop Ups to launch their new products lines and testing out new marketing strategies.
While for the Swedish snus brand, LYFT , is dedicated to treating every customer as the one and only.
In their LYFT/LAB Pop Up store, LYFT collaborated with the emerging perfume brand CRA-YON to deliver a genuine multi-sensory experience to customers, where customers can taste, smell, touch, and play their newest collection.
The considerations regarding leases and others
Pop up shops offer an opportunity for retailers to test the market and don't necessarily require a long-term commitment. Many leases are month-to-month with the possibility of turning into a long-term tenancy.
With the high demand for retail rental properties, pop up stores can be a cost-effective solution for businesses to expand. Rents for these types of shops are often less expensive than those secured by traditional leases. However, this wonderful concept only works best when the space modification is as little as necessary. That's why the leading Nordics' Pop Up marketplace, xNomad, has been collaborating the Nordics' biggest retail agency, Workshop, to offer a move-in-ready solution with full set of furnitures and POS system to ensure a seamless and worry free experience for brands and landlords.
The changes mentioned above should be implemented or removed with relative ease. Usually, those space modifications are not a problem for the tenant, who would like an easy move-in/move-out phase. The landlord also benefits from little or no refit between tenants.
Landlords: Yes or No?
While landlords would like to have a long-term commitment from renters, they are not opposed to short-term leases. Partly because, at any rate, the rent potential is better than no rent at all. A great Pop up store is also a great way to signify the value of a retail space and improve the surrounding streets' attractiveness. It is also aesthetically pleasing, which can significantly help a brand's image.
These short term leases can greatly benefit landlords who offer immediate financing help to a property and allow long-term leasers to have possibilities when the market is more beneficial. The leading Pop Up marketplace - xNomad, has been thoroughly researched landlords' considerations to offer landlords worry-free leasing registration services.
Where and when to start your Pop Up store search
The Nordics are always an excellent destination to test out your Pop Up marketing strategies. The consumers there are very receptive to new concepts, which are why they are the perfect test market. The french florist, Bergamotte, has successfully expanded its markets across the Nordics by breaking the traditional retail methods and opening Pop Up stores across the Nordics with the assistance of the leading pop up platform - xNomad.
All in all, short-term leases like Pop Up stores are not only the most risk-free ways for retailers to adapt to the constantly-changing markets, but also the most cost-effective ways for landlords to fill out the vacancies.
Are you looking for a short-term retail space or interested to fill your spaces? Contact us now.