One of the troubles of running a business primarily online is that it doesn’t allow you to get out there and interact with your customer base. This is why many online businesses choose to run a pop-up shop or temporary retail space. These spaces allow you to meet your audience and showcase your products for a few days, weeks or months without the long-term commitment of a lease.
But what if things go well and you want your pop-up shop to become a permanent fixture? Well, it happens frequently and here’s why.
Test Things Out
Before you go out and look for a long-term lease, you should make the most of your pop-up retail strategy. There are a few strategies you should focus on to determine if a longer-term residence is right for you.
For starters, you should use the opportunity to learn from your customers. Find out if they like purchasing your products in person, or if they would be just as happy getting it through your website. For a permanent store to succeed, you need to bring in return customers. You can use your pop-up shop to determine if your customer base is likely to return.
Next, you can also use your pop-up shop to try out new ideas. Think of your pop-up shop as a test store. You can see what sort of décor works and how best to display products. You can determine which products are the most popular and get a better sense of your customer’s purchase behaviors.
You can also test a demographic or market-area to see how your business will perform before choosing a permanent location
All of these tests help you gather valuable information before signing a lease. Then, if you do decide to get into a long-term commitment, you’ll already know how the market will respond and what works for your store. This will give you a head start so the first few months of your business run more smoothly.
Deciding to Make the Transition
After you’ve completed plenty of testing, it’s time to decide whether a permanent store is the next step.
Ask yourself these questions:
- What sort of return customer rate can you expect?
- How much would a permanent store improve your business over simply operating online?
- What would it cost to run this new store?
- How would a permanent store benefit you versus simply running a pop-up store a few months each year?
Ready to Test Your Business?
For many businesses who try pop-ups, they quickly find it works and decide to take their space to a permanent location. If you’re wondering how to take your business to a pop-up space, check out our leasing options or contact Westfield directly.