Why Pop-Up Stores?

Why should I consider a Pop-Up Store for my business?

The reason we have had success with so many different clients is that with a pop-up shop you can enter a market or markets on a variable cost basis with no long-term lease or financial commitment.

  • Launch a new product or service
    • Exposure to new customers – resulting in new demographics
    • Identify target markets and trends
  • Promote your brand
  • Test new consumer markets/locations
  • Collect consumer feedback
  • Increase sales and profits
  • Launch Holiday and Major Event Products

What to Ask When Deciding if a Pop-up Shop Is Right For You

  • What is pop-up retail?

Pop-up retail is an exciting, high-impact retail opportunity where a space in the mall is transformed into a unique venue for product sales or a one-of-a-kind brand experience. It is a great way to make a big impression with customers in our centers. Pop-up retail stores are ideal for product introductions, brand awareness campaigns and experiential marketing programs within particular events, seasons, markets, or specific shopping mall locations.

  • What are RMUs, kiosks, and in-lines?

An RMU (Retail Merchandising Unit) is a freestanding unit provided by the shopping mall, placed in high traffic locations in the common area. Products sold on RMUs have excellent visibility and are readily available to shoppers. Leased seasonally or year-round, this turnkey option allows retailers to open their businesses quickly, easily and with relatively low overhead expense. Electricity is provided; voice and data lines are available. Retailers pay utility providers directly for these services.

A kiosk is a pre-approved freestanding unit placed in the common area. The unit is typically provided by the retailer. The cost of the unit is the retailer’s expense. Electricity is provided; voice and data lines are available. Retailers pay utility providers directly for these services. Starwood Retail Partners must approve kiosk design and schematics prior to fabrication and installation in the shopping mall.

An inline temporary store is a short-term commitment in a preexisting retail store space in the shopping mall.

  • What do I need to have to become a retailer?

To become a retailer in a POP-UP Store, you must provide:

  • A unique product or merchandise concept
  • Valid social security number or business license/tax I.D. number
  • Location, location, location
  • Approximately $15-20,000 per month in operating capital (rent, labor, operating and marketing costs) until sales exceed expenses
  • Certificate of Insurance naming the shopping mall/center as additional insured with the required insurance limits
  • Time to be at the store a minimum of 50 hours a week

 

  • Once I find a location, how long of a term must I typically agree to?

The term of the license agreement is dependent on space availability and is negotiable. Generally, a minimum of 1-3 months, but no longer than a 12-month period. However, should you wish to renew after the agreement expires, renewal is also base on space availability and is negotiable.  Review your lease carefully. Before you sign, review your location with a licensed professional and a lawyer to make sure it is right for your business.

 

  • How much does it cost to rent space in a Shopping Center or Mall?

Depending on the location you have chosen, the time of the year in which you wish to operate and the overall offering that you present, weekly rents can range anywhere from approx. $500 to $5000 per week.

 

  • Are there any hidden costs in renting space in a Shopping Center or Mall?

The rent you pay will always include the cost of electricity and service charges. All rents payable do not include taxes, insurances or licenses. It is important that you factor these costs in final cash flow analysis.

 

  • Do I need a business plan and if so, what elements should the plan have?

Yes, you absolutely need a business plan. At a minimum, your plan should cover in detail your previous retail/business experience, financial and market analyses, a proposed start-up timeline, and sales projections. Additionally, your plan should outline a well-defined concept, including specifics on your proposed product/category assortment, visual merchandising plan, and pricing strategy (including price lists).

 

  • When hiring employees, should I use a Human Resource/Payroll company or do all the Human Resource Management myself?

Human Resource Laws are different through the United States.  Unless you have an extensive background in Human Resource/Payroll Management, you may want to consult an expert, such as JBC & Associates.

 

  • Can shopping mall/center guest wifi be used to process credit card transactions?

PCI compliance is required for all credit card transactions.  Your processor will notify you of their specific electronic communication requirements relating to processing credit cards.  As a general rule of thumb, mall or shopping center wifi platforms are considered “open” systems with no measurable security in place.  It is not a good idea to transmit consumer data on these platforms.

 

  • What is PCI?

The Payment Card Industry Data Security Standard (PCI DSS) is a proprietary information security standard for organizations that handle branded credit cards from the major card schemes including Visa, MasterCard, American Express, Discover, and JCB. The PCI Standard is mandated by the card brands and administered by the Payment Card Industry Security Standards Council. The standard was created to increase controls around cardholder data to reduce credit card fraud.