Has Payless Initiated POP-UP Stores as Part of Their Bankruptcy Recovery Strategy?

According to recent news, Payless opened its first holiday pop-up store in New York City last week, between Times Square and Bryant Park, and eight other pop-up locations around the US.  While this might seem like a shot in the dark for many, especially amidst the uncertainty of hearing that the chain has filed for bankruptcy, it doesn’t have to be.  Are they looking to stay alive and relevant? Of course! And a POP-UP Store can be just the way to do it.

Many retailers have used this particular method of POP-UP stores as a sure-fire way to keep consumers within reach and to try and make up for the financial losses incurred leading up to and including filing for bankruptcy.

So the question is, Should Payless and Other Retailers Facing Bankruptcy Consider POP-UP Stores in Their Recovery Strategy?


By utilizing the POP-UP Store format as a key strategy in a retail bankruptcy plan, the Retailer can:

  1. Take advantage of peak times of the year that their line performs exceptionally well without having to financially struggle through non-peak months.
  2. Operate their entire retail division and corporate retail support team on a variable cost basis, leaving high fixed costs in non-peak times a thing of the past.
  3. Develop or retain their Omni-channel presence in the market thus alieving any consumer angst over the permanent stores closing.
  4. Negotiate temporary deals with the landlords, hopefully avoiding costly legal battles for abandoning leases.
  5. Maintain goodwill of customers that frequented stores in particular centers by being there for them in the peak seasons.
  6. Utilize existing store fixtures for POP-UP stores, eliminating the expense of new fixtures.
  7. Reduce excess inventory responsibly without “fire sale” promotions and painful lost margin.

The financial benefits of utilizing a POP-UP Store strategy far outweigh the pain of going dark completely. Every CEO, CFO and Bankruptcy Specialist should have POP-UP Stores in their tool bag and not be averse to working through this strategy as part of their recovery plan.

JBC & Associates manages all aspects of POP-UP store operations for multiple projects across the US. James O’Neill can be reached at joneill@jbcassociates.net, and 567-694-7024.