Do Pop Up Shops Actually Increase Revenue?

The benefits of pop up shops are instantly obvious. Not only do they help many companies improve brand awareness, connect more efficiently with end users and test out new products on a very specific target demographic, but they also very easily help companies to shift a far greater number of units by appealing to every consumer’s love of something new and unique.

However, it is not cheap to create a pop up retail shop, and from the cost of hiring the space to the actual expense of the retail interior design, there will be many costs to take into consideration, and the money paid out on things such as design will be spent on things that are only utilised very short term. Therefore, despite the fact that they will increase sales for a business very quickly, once costs are taken into account, do pop up shops actually increase revenue?

Well, firstly it is important to remember that the reasons to create such a short term store will be far more wide reaching that to simply increase profit. Not only do they indeed help business to shift more units and test out unique products before they undergo full-scale marketing (here, potentially saving a business a fortune), but even the success of store design can be measured prior to being rolled out to many different venues.

By testing retail interior design and products in one place rather than numerous places, a business can save huge amounts of money in the long run and even if the cost of hiring premises and interior designers only ends up balancing out with the amount of extra money made in sales, the savings made through such tests and the increase in brand recognition can raise sales in the long run quite significantly.

It is also worth remembering that, even in the most appealing of areas, rental rates will be lower for such short-term leases, and once this reduction is factored in too, a pop up shop can end up being very lucrative indeed.

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Nick is a part time techie, full time writer and Lifestyle intern at 5 Articles.

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