Pop-up Shops are Becoming Far More Common

THE RETAIL LANDSCAPE is altering and evolving – being partially driven by the changing expectations, wants and needs of today’s consumers. And the rise of the ‘pop-up’ shop is one example of this.

The pop-up shop is a short-term retail outlet or cafe, which is set up in vacant space – generally, on a temporary basis.

You’ll find pop-ups in appear in empty shops … setting up in an existing retail locations or in designated spaces within shopping centres. They can even appear in galleries, or simply coincide with specific events.

Short-term Solutions

Pop-up shops have also been able provide an interim use for sites ear-marked for future development.

For commercial investors, the rise of pop-up shops means a range of things. Spaces that may not normally be occupied, can now be used to create an immediate revenue stream.

Conversely, this may be related to a rise in demand for short-term leases. However, in a market downturn, pop-up shops canalso help reduce vacancy rates – by playing an interim stop-gap role for you, as a retail investor.

Other Benefits

Pop-up shops can also …

  • provide a quick testing ground for a new revenue stream,
  • engage online customers offline, or
  • create a new connection with consumers.

Plus, they can also create a sense or urgency and provide a 360 degree promotional experience for a brand – resulting in greater consumer awareness.

In an increasingly competitive market place, pop-up shops often create a superior customer experience. And also benefit from the low set-up costs required up front.

On a broader, more strategic scale, pop-up shops help activate spaces, create a focal point and helptransform what may have otherwise remained as vacant space.

However, there are a number of matters that you need work through.

Bottom Line: A pop-up shop may require relevant licenses and permits (eg: liquor licenses and planning permits).

While in Victoria, the length of a pop-up lease may preclude the application of the Retail Leases Act 2003 … you should still enter into a written agreement, to formalise the short-term use of a space.

Even though there are a number of issues you’ll need to address … given the changing retail landscape,  pop-up shops provide you an opportunity to use retail space in a totally different way.

Disclaimer: If you think a similar situation may apply to you, then you should contact us for detailed legal advice relating to the particular facts and circumstances of your property or lease agreement. This article is not intended to provide such detailed and specific advice. And, you should not act on the basis of any matter contained in this article without first obtaining more comprehensive professional advice.

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