Musings at the intersection of business and life

Pop-ups are seeing a surge in a down economy

Starting a Business
August 6, 2010 by Kathleen Allen

Several years ago I wrote about a trend for retail businesses--the kiosk approach to testing a business concept or product. What this entailed was setting up a small shop in the form of a kiosk, generally in mall space, with relatively low overhead, but the ability to directly reach consumers. I also wrote that some landlords found that, rather than sitting on an empty space until a new tenant is found, they could rent the space on a temporary basis so that their cash flow is not interrupted. Well, guess what? In these uncertain and depressed economic times, we’ve seen a real resurgence in these “pop-up” businesses.

Sarah Needleman writes in a recent Wall Street Journal article about a number of businesses that have taken advantage of an increasing number of vacant retail sites in malls, strip malls, and lifestyle centers. One of the most interesting pop-ups is the current trend of medical service providers locating in shopping centers. Flu-shot provider WellCheck is opening 150 units in shopping malls in 35 states for 6 weeks to test whether consumers are comfortable receiving medical services in this type of venue. If they succeed, they’ll pick the top 20 locations and develop permanent sites with a number of different offerings.

These types of deals can be a win-win for the landlord and the small business owners and they’re the types of deals that may disappear if and when the economy picks up and business owners feel comfortable making longer-term investments.
 
So, are you a candidate for temporary space? See if you meet the following guidelines:
 
·         Keeping overhead costs low is necessary and compatible with your business
·         You’re comfortable sharing space
·         You need to test your product with customers to determine if a permanent space is warranted.
 
If you think a temporary location may be right for you, check out OpenPop-upShops.com or PopUpInsider.com where you’ll find commercial properties available for short-term renting.

Related tags: pop-ups, Pop-UpShops, PopUpInsider, retail space, temporary space

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