Summary
Whether it's for a week or for a season, Pop-Up stores can be one of the most efficient and exciting ways to extend brand reach, relevancy and access, generating both immediate direct response sales and long term brand building. While it’s not a new concept, with lots of available retail space and motivated landlords anxious to boost occupancy and traffic, it is particularly timely for creative and opportunistic companies looking to gain mind share and market share.
Analysis
Pop-Up stores can, and have been, used in many different ways. For Toys R Us they offer a great opportunity to locate stores and merchandise at the right place at the right time, making it easier and more convenient for consumers to buy when they really want to, like toys at Christmas time. And, since reorganizing, TRU has vacated many markets - Pop Up stores in malls will give them the opportunity to re-enter a market in one of the highest traffic venues during the most profitable time of the year.
If TRU can create visibility, buzz and good energy around the experience of these Pop-Up stores, near term they can boost their top and bottom line and grab more market share filling in where they have real estate and market share holes; longer term they can boost their brand. For too many years, TRU was a disorganized, unfriendly, unappealing place to shop for toys. The new management team has worked hard to improve the operations, but there are many, many consumers that haven't, and probably won't, consider going to a traditional TRU again, but will check out a small, well merchandised, well managed TRU in the their mall this Christmas.
Beyond the holidays, more big box brands with robust inventory management systems and supply chains already in place should consider leveraging the temporary retail concept as the flip side to sophisticated but rigid, and highly formulaic, site selection and store design processes, allowing them a new freedom to experiment and learn in ways that just aren't possible in their traditional full line stores.
As always with retail, the devil is in the details. Done poorly Pop-Up stores can do damage to a brand, projecting a cheap, temporary vibe and confusing consumers about the longevity and reliability of the business. Done correctly, Pop-Ups can be tremendous, inexpensive brand builders and buzz generators, creating timely, exciting and special environments that motivate buying and encourage more loyalty over time.
I hope TRU does this correctly, not just for their own benefit but for the benefit of making retailing a bit more interesting.
Cathy Stauffer consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
