Brands list their products and services, and spaces post photos of their available locations.
Pimples are a pain, and they always seem to show up at the worst times.But popping them can specialty leasing actually make things worse.
Specialty Leasing
A popular retail strategy, specialty leasing involves renting temporary space in high-traffic shopping centers and malls to small businesses looking to generate sales and create buzz. Unlike traditional in-line leases, specialty leasing agreements are typically short term and can range from one month to one year.
Earlier this year, Walmart teamed up with tech start-up Popable to offer short-term shop-in-shop opportunities for small businesses in its stores. Through the platform, SMBs will be paired with local Walmart stores that are willing to host them for up to a year without the need for a long-term agreement. Terms will be determined and negotiated directly between the brands and spaces.
For retail landlords, these specialty leases can be a way to drive foot traffic and create an experience that differentiates their shopping centers from their competitors. But itâs important to keep tenant mix top of mind so that the shorter-term tenants do not compete directly with existing in-line tenants.
Pop-Up Retailers
Retailers can use pop-ups to test locations, gauge consumer demand for new product lines or business models, or experiment with a different pricing structure. By meeting customers in person, brands can also gain valuable subjective feedback and better understand what works in their local market.
Pop-ups can showcase products in a way thatâs impossible to do long term. For example, an outdoor gear brand could set up a tent and host workshops that teach consumers how to use their merchandise. This approach is particularly effective if your products are complicated or require manual manipulation.
For example, the buy-now-pay-later company Klarna used a popup to support its mission-driven merchant partners and offer shoppers exclusive discounts on conscious fashion, beauty, and accessory brands. And a clothing line that uses alpaca wool hosted a popup where customers can meet the animals, learn about the productâs environmental impact, and participate in cultural activities. In addition, retailers can use social media and other marketing channels to promote their pop-up events.
Walmart
Walmart last week launched a dedicated e-commerce site called Walmart Business that offers a curated assortment of more than 100,000 products meant to simplify business-related purchases. The products can be purchased online for in-store or curbside pickup, delivery or shipping.
The retailer has also partnered with Popable, the pop-up shop marketplace platform that connects brands & spaces for short-term retail leasing. The partnership will enable small businesses to lease space in designated Walmart stores without having to commit to long-term agreements, the company said in a news release.
The initiative comes as many retailers are struggling to recover from the covid-19 pandemic and higher supplier prices, which have in turn driven up retail prices for consumers. According to a report from retail analyst firm Alignable, the rent delinquency rate for small retailers spiked from 31% in September to 43% in late October. In addition, the number of empty stores is growing as some smaller businesses have been forced to close.
Pop-Up Technology
Pop-ups are often used to test technology that may be too expensive or risky for permanent installation. For example, a retailer might create a virtual shopping experience that uses video or virtual reality to engage consumers without actually having products on hand. In addition, brands can use tech-based pop-ups to tie in with event-based marketing opportunities such as product showcases at a sporting event or music performance.
A retail-tech pop-up might also offer a new way to collect customer data through a new type of interactive experience. For example, a tech-enabled pop-up by Clinique might invite visitors to enter their email address so the company can send them coupons and other exclusive offers. The pop-up might also allow them to select their preferred fragrances, which helps the brand target its emails with relevant content. However, some consumers might find this type of pop-up annoying. It is important for marketers to consider the consumer acceptance and adoption of any new technology before implementing it in a store