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Pop Up Stores: Boosting Retail Revenue & Customer Experience

Pop Up Stores, also known as temporary retail or flash retail opens up a plethora of opportunities for retailers to generate buzz for their brand and boost revenue. Being short term sales places, pop up stores come with limited commitment and minimum costs. It's a handy way for retailers to discharge innovative & experiential marketing to better meet the expectations of their customers. In a way, it's an all win situation for the retailers. The following figures bears testimony to the advent of pop up stores in the world of modern retail.

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  • PopUp Republic, a social media marketing company claims that US $50 billion is the estimated contribution of pop up stores of the total annual U.S sales figures of US $4.5 trillion. It accounts for one sixth of the total online retail value of US $300 billion. This proves that they are an essential cog in the wheel of the retail market.


  • According to their survey, the top 5 reasons for the customers to visit a pop up store included finding seasonal products (61%), finding unique services (39%), to shop locally (36%), for optimal pricing (34%) and for a fun experience (30%) respectively.


  • According to the following graph by CEBR, in the period of July 2014-2015, the age group between 25-34 made the most expenditure at a pop up shop in UK followed by the age group of 18-24.



  • In the U.K, Pop up stores contribute around 2.3 billion pounds with a 12.3% revenue growth as on 2015 (CEBR). They have an estimated strength of around 26,000 employees in the industry.


  • Around 79% of brands have admitted that they focused on event and experiential programmes in 2015.


  • Among these brands, around 65% say that they find a direct correlation between experiential marketing and increased sales. Apart from this, around 84% of companies with a marketing budget of $10 million or more are looking to increase their experiential focus.

With the above facts in mind, let's see how Pop up stores can help generate revenue by boosting sales, especially for the Brick-and-Mortar stores.


Offline Engagement


  • A recent study by Accenture reveals that around 78% of customers are resorting to 'webrooming', which means that they are browsing online but giving in to purchasing from a physical store.

This is because these customers give a lot of emphasis to the aspect of 'touch and feel' of items before purchase. Retailers should acknowledge this fact and understand that pop up stores are an ideal way of allowing customers to come and examine their products before purchase owing to its cost effectivity and portability. Generating effective offline engagement is a favourable way of boosting sales and customer interactivity.


Enhanced Customer Shopping Experience


Customers enjoy the entire concept of pop up stores. This is evident from the statistics discussed above. According to an analysis by the Centre for Economics and Business Research (2014), customers found more than one reason to make their way to a pop up shop. The following chart elucidates the same and also states why customer shopping experience is enhanced due to flash retail in the U.K. It also means that the retail revenue generation due to pop up stores augurs well for the future.


Urgency in Decision Making


For many decades now, retailers have tried to expedite sales by saying that 'there is a high demand for the product and can get sold out soon'. Customers have succumbed to the trap many a times but largely, they have decoded the truth today. However, in the case of pop up stores this is actually true. One would rather make his mind up soon as next time, there are chances of not only the item being unavailable, but the entire store altogether might not be present. This along with the whole concept of limited items available for a limited time at a temporary store are reasons enough for quick stimulation of demand followed by purchase. Overall, retailers can expect increased urgency in the purchase decision making process of the customer.


Making the Most out of the Old Inventory


Pop up stores are flashy and glamorous and appeal to the customers more than the average traditional retail shop. Many times, these traditional retail outlets fail to clear the in store stock and that just leads to the stacking up of inventory. Larger losses loom as the unsold stock keeps piling up. Pop up stores are a good way of shedding out old inventory and converting definite losses into potential revenue.


For a huge market like India and its' retailers, the above analogy should be more than just encouraging. There is no reason why pop up stores can't be an integral part of the offline retail sector in India, much like in the U.K and the U.S.

About Abhishek Mitra

Content is King and Abhishek Mitra firmly lives by it. He is highly committed & passionate in what he does and it's evident through the content that he produces. An MBA Graduate in Media & Entertainment from Whistling Woods International (Mumbai), Abhishek has acquired expertise on developing content pertaining to various verticals overtime due to the sheer knack for it. Apart from being an inspirational scriptwriter in his teenage days, he has worked as an academic research writer in the past. Presently, he handles the content for Tickto.

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