Recent market dynamics lead its participants to run innovation-focused projects. “Pop-Up Shops or Flash Retailing” can be shown as an example of these innovative approaches.
Pop-up shops might be the most creative retailing approach to reflect the current needs of the market. Pop-Up shops are temporary stores placed in convenient and busy locations that have been involved in the marketing literature for a long time. The temporary discount tents of the renowned brands are the best-known examples of this trend. However, the Pop-Up shops are more than just a discount tent where the products with a high brand value are being sold at a reduced price.
Pop-Up shops have its favorable features. With the Pop-Up shops;
- The retailers who plan to open a new shop can test and evaluate the sufficiency of the location of the planned-shop with taking more acceptable risks and avoiding severe lease contracts or giving long term commitments to the shopping center investors,
- The retailers who operate commercial activities only on electronic platforms can meet their current or prospective target customers on a physical platform,
- The retailers with a high brand value can sell their products with the aid of an “outlet store” in case of overstock without damaging the price and quality perception on consumers about the current shops,
- The retailers can test the sales potential of the new products in different markets without taking major risks whether they are experienced or not,
- The retailers can test their niche products with selected customers,
- High demands of consumers for special events (Mother’s Day, Father’s Day, Valentine’s Day etc.) can be eased with concept-designed Pop-Up shops.
Pop-Up shops are the profitable instruments that enable the retailers to keep the finger on the pulse of consumer with reasonable investment amounts for the aim of building the prospective investment plans and projects realistically. These kinds of temporary shops can be integrated into the current retail market with contracts considered as sui generis, just like the stores themselves.
In this context, one of the most important matters for the shopping center investors and administrations is that they should not stay away from the flash retailing approach nor compare/confuse these Pop-Up shop leaseholders with the long-term leaseholders. Also, they should prepare lease agreements that suit the best of the spirit of short-term tenancies, and they should not miss out these projects providing fresh blood flow to the shopping centers with strategical mistakes or heavy articles in usual lease agreements.
By Vefa Resat Moral, Managing Partner, and Bilge Binay Kanat, Senior Associate, Moral Law Firm
