Here today, gone tomorrow?

Pop-up stores are best understood as temporary shops. The concept has come to us from America, but the idea originates in Japanese consumer culture, which is mostly centred around an original and unique approach. Thus the formula of the ‘disappearing’ shop with a limited offer of products – not only in terms of the selection of goods, but mainly due to the limited period that the store remains open for – and we are not talking about its opening times, but the short duration that it operates in a given location. The trick is to exploit the rule of limited availability, which is based on a certain understanding knowledge of human nature – we want the things most that are least available. A limited edition? The last item? I must have it! The mechanism can also be seen in play in hypermarkets just before a bank holiday. And this is how the idea of the pop-up store was born.

Something unique

In Poland the concept has been present on the market for two or three years. Its innovative form has proven to be so appealing that it has rapidly taken off. Initially the idea of a temporary shop was to attract a customer’s interest and make them familiar with the brand – the concept worked more as a sales technique than a retail format. “The pop-up store concept was first introduced to Poland by H&M, which held sales events in detached container shops. However, we are now seeing the transfer of this sales format to malls. This is helping to refresh the retail offer and keep customers interested,” explains Marta Augustyn, an associate director of JLL. In Poland H&M has now opened three pop-up shops. Between mid-May and the end of June 2012 one featured on the Cypel Czerniakowski riverside promontory in Warsaw. The second was opened on the Baltic seafront in 2013 – in the Zatoka Sztuki Art & Business Centre in Sopot; and the latest (in an outlet format) appeared in the Factory Annopol outlet centre in Warsaw over the May and June period. This was the first of the brand to be located in an actual shopping centre. H&M pop-up shops open for a short while constitute something of an event. “The common goal of all the shops of this type is getting closer to the customers, in a way taking the brand directly to its end user. Every time we consider the opening of such a store we think about the sales aspect as well as the promotion of the brand. Such stores usually generate a great deal of interest both among customers and the media. But the specific aim is different every time – in Poland and across the world we have already opened summer pop-up stores, others related to Christmas or other festivals, and shops in which the main motif was ecology,” explains Ewa Jarzemska, the marketing and PR manager for the CEE region of H&M. Thus a pop-up is supposed to be something unique, an event that customers will remember as an interesting and original initiative. The idea involves an element of show business. This is confirmed by Anna Awłasewicz, the leasing director of the Blue City shopping centre in Warsaw. “The idea is for the customer to feel that they have just happened upon a unique opportunity. This motivates them to buy the goods, particularly considering that the pop-up stores in our mall offer unique products. In cooperation with the tenant we use all the possible marketing tools to publicise an event such as a pop-up shop. We mainly, but not exclusively, focus on social media, Facebook fan pages and cooperation with fashion bloggers, who feature the idea of the brand in question on their sites,” explains Anna Awłasewicz.

Great friendship

As it turns out, a shopping centre is an ideal location for a pop-up store. The large flow of customers, combined with the fact that an outlet can be furnished at a low cost, is a major advantage, especially since the marketing is done in cooperation with the facility manager, the rent is not so high and, importantly, it can all be done with the blessing of the shopping centre’s owners. “A pop-up is an interesting solution for shopping centres. Sometimes it makes it possible to use a vacant outlet; on other occasions, mainly in facilities which have hardly any vacant space, the new product can be introduced in the form of islands or stands. They do not require the expenditure needed for a full fit-out of an outlet from such a tenant. The costs of functioning in a good shopping centre are by no means prohibitive,” explains Marta Augustyn. The facility managers we spoke to stressed that the cooperation between a centre and such temporary tenants can be beneficial for both parties. “It is good advertising for us, a chance of acquiring new customers and tenants. The centre’s image as a modern, fashionable and trendy place is enhanced. We can attract new customers to the centre and the brand has a chance of making its presence known on the market by presenting its new collection. Our customers are impressed that the centre features stores that cannot be found anywhere else. This is always widely and positively commented on in social media,” claims Anna Awłasewicz. It needs to be borne in mind, however, that pop-up stores in malls have their own specific rules. “The contract is signed for an indefinite period. This usually means that the shops operate in this way for around 3–6 months. The tenant is obliged to prepare the outlet to be used – refresh the interior, carry out the technical supervision and furnish the unit. It is usually not expensive to do so. The rent on such short-term leases is sometimes as low as half as much as the standard rate and is mainly used to cover the operating costs. So we do not lose out on such business. The units for pop-ups are usually made available for a transition period while we are looking for a new permanent tenant or while we are negotiating with them. The areas of our pop-ups have ranged from 50 sqm to as much as 360 sqm,” reveals the leasing director of Blue City. In special cases the tenant can even use the area without paying any rent. This was the case in Factory Annopol. “The shop in the Factory centre in Annopol is the first H&M pop-up store in Poland to operate in a shopping centre and I have to say that our experience has only been positive there. There was a great deal of understanding in terms of the goal of our store and its unique character. Considering the charity aspect of the project, the area we were given free of charge was a great support,” relates Ewa Jarzemska. Temporary shops are mainly present in centres in the capital city, although such stores (some of which have only existed for a weekend, e.g. Showroom Pop-Up Store Kids Edition) have also featured in Stary Browar in Poznań. Apart from well-known brand Aloha From Deer, outlets have also been temporarily leased by Tutu, which offers fashion wear by Polish designers, Stivali and Purol Design. So far around ten pop-up stores have opened in the Blue City mall. Some have been incorporated into the cultural events offered by the centre. Exhibitions have been held such as Bodies Revealed, I the Motorcyclist [Ja, Motocyklista] and Illusionists’ Secrets [Sekrety Iluzjonistów], as well as such initiatives as OKO Ochota Culture Centre [OKO Ośrodek Kultury Ochota] and Fashion Democracy (this idea has also featured in other centres, e.g. Nowy Dom Jabłkowskich in Warsaw and Danish Fashion Democracy at Plac Unii). The other type of pop-up store to appear in Blue City were fashion shops: La Bohème (where the Muses collections of Natasza Urbańska and Agnieszka Komornicka were sold), which operated for almost three months, and Colorshake, which has successfully functioned since the end of last year. “New ideas and new parties interested in cooperation keep emerging. We have talked to brands such as Rina Cossak, Modelove, S Ivory and Kawasaki. We have not reached agreements with all of these due to the high technical, image-related or financial requirements of shopping centres or due to the lack of a suitable area. However, compared to other Warsaw malls, shops like this feature quite often in our centre and we are seeing a great deal of interest in space for such short-term operations,” comments Anna Awłasewicz. The Plac Unii City Shopping centre in Warsaw is also an important location for pop-ups. “Our centre is popular with brands interested in opening pop-up shops. So far we have had a few such initiatives: Ania Kruk, Villeroy & Boch, Palmers, Joanna Klimas and Delsey. The Pop-Up Story boutique, which features clothes by young Polish designers, was opened in June,” says Bogda Korolczuk, the director of Plac Unii City Shopping. A Melissa store has opened in Złote Tarasy in Warsaw, while Galeria Katowice has seen the opening of interior design boutique Showroom Klakier Gallery. Manufaktura in Łódź featured a Rush skateboard shop and an outlet of Łukasz Jemioła.

Not so easy

Even though renting a unit for temporary activities in the majority of shopping centres is not difficult, there are certain dangers related to the non-permanent nature of such stores – both for the tenant and the facility. “In our opinion pop-up projects are not so effective. Although they might contribute to the raising of brand awareness, they do not generate sales results. So far we have had three projects of this sort and they have had a negative impact on our brand. People did not know that they were temporary boutiques that would suddenly disappear from the map of a given place. Customers treated the closure of the shop as the removal of the brand from the market, thinking that it had ceased to exist. This is not very good PR. Even those who know what pop-ups involve, have still been disinclined to shop in them. They were worried that in the case of a complaint they would have nobody to go to,” admits Joanna Trepka, who created the Loft37 brand together with Paulina Kalińska. The company had temporary shops in Stary Browar, Klif Gdynia and Arkadia in Warsaw. In order to assuage such worries of customers unfamiliar with pop-ups, facility managers need to launch effective information campaigns, especially since the closure of an outlet can sometimes generates negative associations for the entire mall. “Such a situation would be problematic if many pop-up shops were opened under one roof at the same time. With individual initiatives there should be not any such negative connotations,” says Marta Augustyn. It is clear, though, that you need to work on customer awareness. “In order to avoid the dangers involved in the temporary activities of a shop, you need to present the pop-up as an event, a unique opportunity to buy something special. Besides, this is what the marketing of such projects is based on – the more prestigious the event, the more it encourages people to buy something. However, the customer has to be informed in advance about the form that such a store will take and that its temporary character is intentional. This needs to be supported by information posted on the internet,” says Anna Awłasewicz. Another important aspect is the length of the lease period. It cannot be too long because this will have an impact on the landlord’s relationship with tenants who operate on regular market terms. “The assumption is that it is a short contract. Prolonging the functioning of a pop-up store could be perceived by long-term tenants as dishonest. Since temporary projects operate on a preferential basis, it is very important for the facility manager to make sure that there is a balance. If we notice that a temporary tenant is doing very well and that they are happy with their results, we can suggest extending the cooperation, as was the case with Colorshake, but according to market conditions. Even if an outlet is occupied by a pop-up shop, we will continue to look for a long-term tenant for it,’ claims Anna Awłasewicz. Bogda Kolorczuk, however, gives a slightly different perspective on introducing a pop-up store to a shopping centre. “The introduction of the pop-up store concept to a shopping centre is beneficial to both parties. For the tenant it represents an ideal opportunity to try out the location of the centre, and for the manager it is a chance to see how such new brands perform in the centre. The presence of pop-up stores in Plac Unii is not a short-term project, but an alternative form of cooperation with interesting brands that have a chance of signing a permanent contract,” remarks the director of Plac Unii City Shopping. Nevertheless, with a longer test period for a location and the brand, is it still a pop-up concept or has it become a ‘trial’ shop? “Theoretically, this is not the idea behind pop-up shops, because such a store is supposed to be something new, unexpected, an area that is supposed to evoke interest and create an additional, positive ‘buzz’ around a given brand. However, a pop-up can also test out the location for a short period before later turning into a regular agreement with an adjustment to the leasing terms. Due to the fact that the space leased was not adjusted to the particular concept earlier, an appropriate investment should then be made in the outlet,” comments Marta Augustyn of JLL. Will the ‘trial’ shop formula also become popular with other tenants? This is unlikely, given that chain stores have their own expectations regarding the lease period as well as the fit-out and furnishing of an outlet. The format is most effective for new designer concepts and the various fashion and interior design initiatives. “I do not think that chain stores, which have their furnishing standards, would be interested in such a form of cooperation because chains require an appropriate standard. Arranging a temporary shop with low expenditure, which differs from the usual finishing standard, could have a negative influence on the image of a given brand. Other aspects such as the stability and accessibility, are also significant, which is why I do not believe that such testing of a location is attractive for a chain,” adds Marta Augustyn. Are pop-ups just a fad? The experts believe that the trend will continue for the next two or three years. In the meantime, retail chains are still engaging with this approach. “We look at each such project individually – when we take this option we need to be sure that both the concept of a given pop-up store, its location and offer will be something surprising and fresh for our customers. We do not like to repeat ourselves,” says Ewa Jarzemska.

52 weeks of fashion

Our idea is completely different to those that currently exist on the market. In Plac Unii City Shopping we have created a unique offer based on the pop-up concept. It will be a multi-brand boutique that will operate for 52 weeks, the exact number of weeks in a year. Over this period we will showcase the creations of 52 Polish and – on a guest-basis – international fashion designers of clothes, shoes and accessories. Our aim is to create a unique space where fashion combines with art and good design. In the second stage of the P52 project we are planning to open an additional area of 240 sqm, where fashion shows, photo sessions, workshops, meetings with designers and fashion experts as well as presentations of new technologies in the clothing industry could take place. It will be open seven days a week throughout the year. The aim of the project is to support the development of the Polish fashion brands that would normally have a problem entering a modern shopping centre due to the cost considerations. By acting together they will have the chance to spread their wings, to display and sell their designers’ collections in a mall visited by tens of thousands of people. Why a shopping centre? Our aim is to re-enchant the mall, make it more familiar, so that it becomes a place that is friendly for young designers. We want them to feel comfortable here and, at the same time, to give them the chance of addressing the larger audience provided by a mall.