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Return of the Pop-Up Shop

Pop-up shops are back! We explore ways to capitalize on the temporary retail trend.

APR 25, 2022 by Julia Janks

ECOMMERCE RETAIL

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The Signal: The pop-up retail industry, which generated $50B-$80B annually
before the 2020 retail apocalypse, is making a post-covid comeback.
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 The recovery is being driven by an unlikely suspect: ecommerce. 

While the last 2 years have been characterized by a mass migration of brick-and-
mortar stores online, in coming years we will likely see the reverse.  

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Ecommerce heavyweights like Birchbox, BarkShop, and Leesa have been leveraging
temporary retail for a while, and now some new online-only suspects are jumping
on the trend:

The Inkey List: A skin care company that has grown 600% in 4 years
Parade: An underwear brand popular with Gen Z
Pleasing: A nail polish and beauty brand by singer Harry Styles 
Kylie Cosmetics: Does this one really need an explainer?

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our Privacyoffer Policy.the perfect solution for covid-born online businesses looking to
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build brand awareness or a physical presence — without having to over-invest in a
permanent space. 

The value prop of the physical store is also increasingly shifting from utility- to
experience-driven, which opens the door to a new world of pop-up possibilities. 

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1. Provide pop-up services

While existing tools (like We Are Pop Up) help retailers get started, there is an
opportunity to provide full turnkey pop-up solutions for new ecommerce brands.
Your service could include location scouting, concept design, and staffing.

You could scale it down a notch and provide a more pint-size solution, like pop-up
pods, booths, or cubes. Take inspiration from the food truck industry and provide a
mobile solution using trucks, vans, campers, or even scooters. 

The Kynd Fashion truck based in Sri Lanka (Source: The Morning)

2. Launch your own pop-up

If you’re an ecommerce company looking to expand brand reach, launch a new

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 Submit

Source: Revealbot

According to a 2019 survey of 600 retail professionals, 80% of retailers who have
opened a pop-up deemed it successful, and ~60% said that they would do it
again.  The same survey found that most retailers (60%) spent <$10k on pop-up
space. Of those, ~75% spent <$5k.

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3. Virtual pop-ups Decline Allow Cookies Powered by Delighted
Like it or not, pop-up shops in the metaverse are a thing now.

Italian fashion brand Hogan recently took part in Decentraland’s Fashion Week
with a virtual pop-up store, and jewelry label Pandora teamed up with Animal
Planet to launch an in-game virtual pop-up
Submitcalled “Pandora Island.”

But you don’t have to dive head first into the metaverse in order to participate in
the trend. 

Virtual pop-up stores gained popularity as an alternative to the real deal during
national lockdowns, and, despite a dip in 2021, interest is picking up again. 

Source: Google Trends

A virtual pop-up shop is essentially anything that creates a unique online shopping
experience for your customers, separate from your existing website. This could be
an event or even a landing page dedicated to a new product line. Some bands that
have already experimented with this format include Lancôme, Hoover, and Dunkin’.

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 Submit
Julia Janks
Senior Analyst

Senior Analyst at Trends. Ex management consultant passionate about blockchain and

DLT

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