Fall marks the start of the spending season for consumers. Whether they are purchasing costumes and candy for Halloween or ornaments for the Christmas tree, consumers are more likely to spend on special gifts now than at 
any other time of the year. Retailers who are well aware of this trend and mindful of keeping their own expenses in line, are setting up temporary shops to generate cash.
In many markets, the pop-up shops for Halloween are already open for business and likely to be advertising heavily to capture their share of the $5 billion in spending that marks this holiday. The appearance of these temporary stores in any market increases competition. In some cases, a pop-up retailer can cut into as much as 10% of an existing store’s business. One way to stop the sales erosion would be for existing retailers to market their own discounts.
Sales reps could also boost their revenue by working with pop-up retailers to create ad campaigns. In some cases, these retailers are looking to try out a new location during the busy holiday season that might later become permanent.
Shopping center landlords note that pop-up stores have always been around but the recession has increased the interest in this format. Empty spaces in malls abound and landlords are anxious to rent out space for at least part of the year.
Analysts say that established retailers often experiment with pop-ups to strengthen their brands during the holiday season. Well-known retailers who have used this strategy include Toys “R” Us, FAO Schwarz, and Forever 21.
Reps should approach managers of pop-up stores to sell ad campaigns for the holidays.
[Source: Turner, Kevin. Halloween ‘pop-up’ stores scare off profits. Jacksonville.com/business. 24 Aug 2011. Web. 27 Sep. 2011; Berliner, David. The Future of Pop-Up Stores. 26 Jan. 2011. RetailingToday.com. Web. 22 Sept. 2011]
Tuesday, Sep 27, 2011
Kathy Crosett