Pop Up Stores

You may have heard this term which was started to encourage new businesses and would-be retail stores to see if they can survive, grow and attract business before they jump in with both feet. Many cities are even sponsoring this new idea which they hope will pay off for both the city and the business to increase sales tax, traffic to shrinking store areas and promote small business. This is a great idea and long needed in the retail industry that has been losing to online sales. If this can work for you it's well worth giving it a try because the risk in minimal and the rewards are great. This can be done any time of the year not just the holiday season.

In my city, Colorado Springs, this past holiday season the city had a program for pop up stores in the downtown district to fill in vacant retail space and give shoppers a chance to visit new and upcoming businesses. It also made the area look full and more appealing during the holiday season. Their program allowed new retail stores to test the market by committing to 10-12 weeks in a retail space but no long term contract. They would occupy it the beginning of November and make a decision to stay or leave in early January. The advantage for the new or growing business was that they paid only one third of the normal rent per month, the city group paid one third and the building owner absorbed the other third.

This is a win-win-win situation where everyone comes out ahead. The previously empty space generated rent when there was none, the city collected sales tax for any sales there and the business owner got to see if their  store could make money and survive with all the retail expenses. If the owner didn't feel it would last during other times of the year, they could walk away with no additional cost. Some of these programs can vary from 2 months, 3 months up to 6 months. And the building owner may even extend it or gradually raise rent as sales grow. Check with your city hall or talk to owners of vacant retail space to see if it can work for you. The risk is low to see if your ideas and products will work in a retail store.

Barry is a marketing, customer experience and business relationship speaker and consultant who has owned many businesses. www.idealetter.com