4 Reasons Brands Like Hermès Are Opening Pop up Stores & Why You Should Too

Women shopping
 

By Tricia McKinnon

It seems as if the age-old retail concept, the store, is in a period of constant reinvention. From cashier less stores, to stores where customers checkout using mobile devices to stores that pamper customers with services a new store concept seems to pop up (no pun intended) every week. The pop up store is not one to be left out.  Although pop up stores have been around for a long time they have even more importance in today’s retail environment where some retailers are struggling to stay relevant amidst a sea of changes.  The number one reason cited by retailers for using pop up stores is to increase brand awareness (66% of survey respondents), followed by a desire to connect with customers (63%) and in third reason why retailers open pop up stores is to introduce a new product or brand (46%). 

While there is a lot of coverage about popular direct to consumer brands such as Warby Parker and Glossier who have opened pop stores retailers that have been around a while such as Hermès, Coach and Prada have also opened pop up stores in recent years.  This trend also has gained dominance due to changes in the real estate market that have left landlords looking to fill space from retailers that are downsizing or are no longer in business.  For example, companies like Storefront and Appear Here are like the Airbnb for retail space. These companies connect retailers that want short term spaces with landlords through an online marketplace. Storefront, for example, is the world’s largest marketplace for short term real estate.

Thinking about getting in on the pop up store trend? Here are four reasons why you should consider it.

1. It’s an opportunity to test and learn. Pop ups allow brands to test and learn new retail concepts and products without having to make a significant investment in a long-term lease.  Direct to consumer brands that have built an online following often like to use a pop up as a way to test the waters for an eventual bricks and mortar expansion.  Digitally native brand Warby Parker has used pop ups to not only refine its store concept but to determine the best location for its stores.  

In one of Warby Parker’s initial pop up stores it placed eye glasses on shelves that spanned from floor to ceiling.  Then Warby Parker realized that most customers do not want to reach for glasses that are located at knee length.  Warby Parker also had a pop up inside a school bus that travelled all over Washington DC.  One of the corners that it stopped on, Wisconsin Avenue and M street performed very well.  According to David Gilboa, Co-CEO of Warby Parker: “that block was, by far, the most successful stop on the entire tour.”  “We had a hunch that a permanent store there would do just as well.” After opening a store in that location it is Warby Parker’s best performing location in the US.  

2. It creates a way to increase brand exposure. Human beings crave novelty. We love to see and learn about what’s new and exciting.  It can be hard to make the same store a customer has been shopping in for the past 20 years novel.  But pop up stores are a great way to do this.  Many pop ups are structured like highly anticipated events with the marketing budget to match.  For example, the undisputed queen of pop up stores, Glossier hosted a pop up last year in a café in San Francisco where customers could eat fried chicken while shopping. Creating an event like this that coincides with introducing new products or featuring products that you already have in a new way can drive excitement and traffic to a pop up store.   

With FOMO (fear of missing out) a key driver of human behaviour having a limited time only pop up store experience can drive customers to seek your brand out.  While 90% of retail sales in the US still happen in stores, online shopping has changed consumer expectations. Since we can browse for products from the comfort of our own home a shopping trip needs to be more purposeful. If a customer knows they are going to see something new and exciting at a pop up they might be more inclined to make an extra shopping trip.

Brands that have successful pop ups know that they are really a powerful marketing tool that can attract new custoemrs as well as keep existing customers interested. For example, the top results from the use of pop up stores cited by retailers is increased market visibility (51%), followed by increased sales (46%) and more social media engagement (46%) comes in third.

3. It promotes brand building. Pop ups are not just for direct to consumer brands.  A number of brands that have been around for a long time such as Coach and Hermès have also created pop up stores.  These pop up stores tend to be heavy on the experience.  Who would have thought that the seller of bags that retail at over $10,000 would need a pop up to sell its merchandise? But luxury brand Hermès had a pop up last year that it described as an experience to "discover silk as you’ve never seen it before….[It is an] unforgettable, immersive experience that will exhilarate your senses!" 

Speaking about the pop up Hermès launched last year called Carré Club, Hermès’ Artistic Director of the Women’s Universe at Hermès said: “Hermès’ Carré Club started with the idea of gathering Hermès scarf lovers and fans to experience a unique moment in the heart and soul of our creative studio. A club seemed the perfect way to bring a community together to discover, meet and play with our artists and illustrators.”  The pop up was a multi-room experience focusing on the brand’s iconic silk scarves.  The pop up stopped in a number of cities around the world including: Toronto, Singapore, Los Angeles, New York City and Milan.  Customers participating in the event could buy scarves (some of which were custom designed for the pop up), grab a coffee and watch artists on site draw and design scarfs in real time. 

Like ephemeral content on social media, pop ups that are here today and gone tomorrow allow brands to show a side of themselves they might not be able to in a regular bricks and mortar store.  Experiential pop ups like Hermès’ give customers a chance to get to the know the brand better.  In an age when we spend so much time on our phones we actually crave more human connection. Speaking about the Apple store, Apple’s now departed head of retail, Angela Ahrendts said: “I think as humans we still need gathering places.” “And when you are serving digital natives, the thing they long for more than anything is human connection. Eye contact.” 

4. It can help your brand to evolve with the times. Retail is far from dead.  The retail sector is expected to grow by 3% in 2019 which is a heathy number on such a large base.  While online shopping has not taken over it has changed our view of the world.  In the past you may have thought it was okay to spend a few hours on the weekend browsing the merchandise at your local department store.  Now you can see nearly all of a brand’s merchandise online.  So why make a trip to the mall?  That is the question retailers have to ask themselves.  What is the reason that will drive customers into my store today, tomorrow and five years from now?  

Novelty whether it is through a limited product launch or a store concept that is only around for five days has proven to be a compelling way to get consumers excited about shopping.  The retailers that preform the best will be the ones that can find ways to continually introduce novelty into the shopping experience.  Take discount stores, whether they are dollar stores or off price stores, they have as sector performed very well.  One of the reasons why lies outside of price.  It is the treasure hunt atmosphere that stores like TJ Maxx create.  Customers are enticed to go into these stores to see something new.  Customers also know if they don’t shop frequently they might miss out. Pop up stores have similar features – novelty, here today, gone tomorrow and fun.  To the extent that pop stores continue to have these features they will be here for the long run.

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Tricia McKinnonTrendsComment