A shifting retail landscape for brands and landlords
In the tailwinds of the COVID-19 pandemic, the retail landscape is shifting rapidly. Changing consumer behaviors have naturally come to follow as a repercussion of the global health crisis, where the popularity of e-commerce has risen massively compared to pre-pandemic levels. According to Statista, online sales accounted for one-fourth of Scandinavian companies’ total revenue in 2020.
In parallel with the increasing dependence on e-commerce channels within retail, the commercial real estate industry in the Nordics faced major challenges during the pandemic. According to a report by JLL, the decline in investment in Nordic retail properties reached record low levels between 2019-2021; where the shopping center- and high street retail segment took especially hard hits.
Even if there is mounting evidence that the physical retail segment is on the bounce back with the pandemic on the back-burner; up-and-coming retail trends like “click & collect ordering” and flexi-delivery are shifting the role of physical stores.
So, is having a brick-and-mortar presence a dying concept? Most certainly not! With about 60 to 70 percent of consumers researching and shopping both online and in-store, omnichannel strategies (taking both physical and online touchpoints into consideration) have come to be the preferred mode of operation for most brands, according to a report by McKinsey.
Brands are establishing an omnichannel presence through short-term activations
With Q3 and Q4 ahead of us - featuring events like Black Friday, Cyber Monday, and the Christmas season, it is imperative for retailers to lay out the groundwork for realizing their business goals and to entice new as well as existing customer segments.
Establishing an omnichannel presence is an excellent way for retailers to boost sales and brand awareness across all channels. According to a market report by IBIS, the pop-up industry is anticipated to rise by an annualized 2.5%, and the current market size is estimated to be $14bn in the US alone.
Short-term activations offer a sense of flexibility in structuring short-term leases, which many commercial real estate providers have deemed as an efficient omnichannel strategy during the pandemic, and certainly beyond.
If you’re a brand interested in the potential of short-term activations - setting up a Sample/ Archive sale during the fall could be an excellent gateway for tapping into, or extending your current omnichannel strategy. Let us run you through some examples of how xNomad has helped brands in realizing their seasonal pop-up store visions.
CDLP Archive Sale at A-house
Swedish-based design house, CDLP, offers luxury essentials developed with innovation. For the end of the spring season this year, CDLP decided to team up with xNomad for their Archive Sale. which was hosted in an urban store space in A-House, Stockholm. Visitors were able to roam a selection of CDLP’s previous collections at discounted prices. The activation was a staggering success and attracted new customer segments, boosted brand awareness, and helped CDLP in getting good riddance of their remaining inventory from previous seasons.
By Malina Sample Sale
The Scandinavian fashion brand, By Malina, offers pieces that radiate sophisticated femininity, irresistible patterns, and timeless silhouettes. By Malina’s selection of pieces is continuously growing and is shaped by seasonal trends - the Sample Sale thus offered the perfect opportunity to clear the company's inventory and offered a variety of pieces from previous collections to eager shoppers. The Sample Sale was hosted in a store space curated by xNomad on Norrmalmstorg, and visitors crammed the Sample Sale all throughout the one-week event.
Parnevik x Lindeberg ‘30 years of fashion’ Archive Sale
A sample sale is not only a good way for retailers to get rid of inventory - but also allows an opportunity to innovate and set up engaging marketing concepts. For the Parnevik X Lindeberg Archive Sale hosted at Sankt Paulsgatan 11, the influencer Philippa Parnevik and Blue Lindeberg dedicated The Archive Sale to honouring their dads’ common fashion legacy. Where customers got a chance to shop a selection of golf player Jesper Parnevik’s closet, curated by Johan Lindeberg at the peak of Parnevik's career. The Archive Sale was a blast and generated loads of buzz in media outlets and attracted ample eager shoppers.
Klättermusen Archive Sale
xNomad teamed up with the Swedish brand Klättermusen to host a 5-day Archive Sale at Grev Turegatan 1. Klättermusen offers a broad selection of mountaineering equipment and has through its environmental awareness and core focus on utility and durability in its designs managed to gain massive traction among outdoor enthusiasts. The Archive Sale was highly appreciated and amped up sales and drew in a number of new and existing customers.
With these short-term activations in mind, we hope you have gotten some inspiration. Either for setting up your next Sample/Archive Sale to boost your omnichannel presence - or potentially to get some insight on how you can make the most of your vacant store space.
Let xNomad help you in activating your brand or space. Check out our platform to list your space or browse vacant ones!