What is a pop-up shop? Everything you need to know to try short-term retail > How to set up a pop-up shop in 6 stages. Set yourself up for success with this handy checklist > How to Choose The Best Destination For Your Next Pop-Up Store?
Are you looking to take your business on the road with a pop-up store? If so, choosing the right destination is key to ensuring the success of your venture. There are a few factors to consider when selecting a location for your pop-up, including foot traffic and the demographics of the area.
One of the greatest advantages of pop-up stores is the flexibility to travel to new places and introduce your brand to diverse markets. But nailing down exactly which destination to open a pop-up store in requires a lot of goal-setting, strategic planning and research.
In this blog post, we’ll share tips on how to choose the best destination for your next pop-up store. We’ll discuss the importance of foot traffic and the demographics of the area, as well as the distance from your permanent store. By following these tips, you’ll be sure to choose a location that will help your pop-up store thrive.
1. Set Goals
If you don’t set out with specific goals in mind, it will be difficult to measure how successful your pop-up store was. Perhaps it’s a product launch, doing market research on a new concept, or growing your customer base.
Those goals can guide you in the right direction. If you want to test a new product, go to destinations where you have many existing customers. If you want to grow your customer base, head to a location with lots of foot traffic.
2. Identify Your Target Audience
- Identifying your target audience can help you narrow the list of destinations. You can determine whether they’re in urban or suburban areas, where and when they do their shopping, and how much they’re willing to spend.
- Evaluating your sales data can help you distinguish a profitable market base if you’re an online retailer. It’s also important to decide if you’re going to base your pop-up location on geographic segmentation (a specific market, state, or region), demographic segmentation (targeting gender, age, income level, etc.), or time/seasonality.
Read More: How to use pop-up shops to nurture existing customer relationships?
3. Establish a Budget
Be conscious of your budget as you tour potential locations. A good rule of thumb is to expect your budget to break down like this:
- 30% for the location itself (rental space)
- 30% for staffing, promotion and miscellaneous expenses (travel and lodging to prepare for the pop-up, Wi-Fi, hired staff to work the store, marketing budget, etc.)
- 20% for logistics (store set-up and moving inventory)
- 20% for design (creating your optimal layout)
4. Big City or the Suburbs?
New York City and Los Angeles, the two most-populous American cities, remain top locations for pop-up stores due to the sheer volume of the markets. Some brands have experimented with pop-up stores in large cities as a way to provide convenience and access to shoppers without the hassle or commitment of operating a brick-and-mortar store in a congested area. E-commerce brand Nubian Skin hosted its pop-up store with us in a prime Melrose Ave boutique retail space (see below) to attract its online consumers in a highly populated, central location.
However, there are several reasons you might choose smaller cities. It’s generally less expensive to rent retail space in smaller cities. Additionally, many small and medium-sized cities are renewing their image and fostering innovation, thus making them eager to welcome pop-up shops to stimulate the local economy.
You may also find in your research that your target audience resides primarily in smaller cities. You may want to branch out or test in a smaller market if you’re already operating in a larger city. Smaller markets, such as Raleigh, North Carolina; Knoxville, Tennessee; and Richmond, Virginia, have seen a surge in pop-up stores.
5. Consider Events
You’ve identified your target audience, and you can use the information about their interests to identify events that they’ll likely attend.
Many fashions and luxury brands have found success at Fashion Week, gaining visibility to a targeted demographic. Miami’s Art Basel is another pop-up event to consider. When determining which events make sense for your brand’s pop-up store, refer back to your identified audience and understand where they’ll be — and why.
6. Evaluate the foot traffic in the area when choosing the place to do a pop-up shop
When choosing a location for a pop-up shop, it is important to evaluate the foot traffic in the area. This will help you determine how many potential customers you can reach and how successful your pop-up shop will be.
There are a few factors to consider when evaluating foot traffic.
- The first is the time of day. You will want to choose a location with high foot traffic when you are open for business.
- The second is the day of the week. Weekends are typically the busiest days for shopping, so choosing a location with high foot traffic on weekends is ideal.
- The third factor to consider is the type of foot traffic. You will want to choose a location that is near your target demographic.
For example, if you are selling children’s clothing, you will want to choose a location that is near families with young children. By considering these factors, you can ensure that you choose the best location for pop-up shops.
7. Review the competition
When opening a pop-up shop, it’s important to look at the competition and see what other businesses in the area are doing. This will help you decide on the best places to open your shop and give you an idea of what to expect in terms of foot traffic and sales. By looking at the competition, you can better understand what works and what doesn’t and make sure that your pop-up shop is the best it can be.
8. Research the demographics of potential locations
One of the most important things to consider when opening a pop-up space is the demographics of the potential locations. By understanding a location’s demographics, you can ensure that your pop-up shop is appealing to the right audience and maximize your chances for success.
Read More: How to Use a Pop-up Store To Find Lifelong Customers
There are a few key things to research when considering the demographics of a potential location for your pop-up shop.
- First, consider the population of the area. This will give you an idea of the potential customer base for your shop.
- Second, consider the median income of the area. This will give you an idea of whether or not people in the area can afford your products or services.
- Finally, consider the age and gender breakdown of the area. This will help you determine what products or services to offer at your pop-up shop.
By taking the time to research the demographics of potential locations, you can be sure that you are choosing the best possible location for your pop-up shop.
9. Balance the pros and cons of each location
Carefully considering all the possible factors that come with each location is the key to finding success with your next pop-up store. Weighing the pros and cons of each option is the best way to come to a decision. Location is important for many reasons, including foot traffic, visibility, and competition.
Think about the type of customer you are trying to reach. If you are selling high-end fashion, you’ll want to be in an area with a lot of foot traffic and high visibility. If you sell more affordable items, you’ll want to be in an area with less competition.
There are a lot of factors to consider when choosing a location for your next pop-up store. But if you take the time to balance the pros and cons of each option, you’ll be sure to find the best destination for your business.
10. The Unexpected
Don’t be afraid to dream up an idea and work to achieve it. If you find a unique pop-up venue that you know would make sense for your brand, goals and target audience, that can determine which destination you target for your next pop-up.
Set yourself up for retail success with the ultimate guide to opening a pop-up shop >
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- Reaping the Benefits of Long-Term Pop Up Stores: Tips and Advice - December 23, 2022
