Even alongside today’s sprawling digital marketplace, the physical retail experience still matters, and pop-up shops are an increasingly popular piece of the bricks-and-mortar scene. These temporary retail spaces, which can range from a small kiosk in a mall to a large-scale event in a warehouse, offer brands a unique way to engage with customers, test new markets or locations and, by their fleeting nature, generate a sense of urgency. But for a pop-up shop to be successful, its location is paramount — the difference between a thriving, bustling shop and a forgotten, empty storefront. This article explores the critical factors involved in selecting the perfect location for a pop-up shop, from comparing location types to analyzing foot traffic and demographics to understanding lease negotiations and timing considerations.
Comparing Location Types
Pop-up shop locations run the gamut from vacant retail spots in busy shopping centers to vast empty spaces in the warehouse district. All offer their own mix of benefits and drawbacks, and the right location ultimately comes down to the brand's goals, target audience, and budget. Here’s a quick breakdown of major location types and their key advantages and disadvantages.
High-Street Retail
These city-center retail districts offer high foot traffic and great visibility from a diverse mix of shoppers, making them great locations for product launches, testing a market for future expansion, and building brand awareness. But that visibility and target-rich environment come at a literal cost — renting high-street retail spaces is often expensive, and the pop-up will face competition from other businesses in the area.
Malls
Shopping malls are a popular choice for pop-ups because of their diverse, high-volume foot traffic. All those consumers are there with shopping in mind, primed for impulse buying, and this mentality contributes to the mall’s popularity as a location with high sales volume potential. Malls also offer protection from the elements, as well as built-in security. As with high-street retail, however, rental costs in a mall can be steep, and the competition stiff.
Transit Hubs
It’s counterintuitive to think of commuters and travelers as a captive audience, but that’s what they are, albeit briefly: Consumers in transit hubs are there until their train or plane arrives for boarding, and they’ve got time to kill. These consumers appreciate convenience and speedy transactions, making transit hubs a great choice for travel goods, technology, “grab-and-go” food and beverages, and impulse items. The downside to transit hubs as a pop-up location? Space is limited, and the competition for consumers’ attention is built in; their minds are on travel, not exploring a brand’s story and identity.
Unconventional Spaces
Parks, rooftops, galleries, and other unconventional locations offer novelty and create buzz, making them memorable for consumers and a great opportunity to spread awareness and define the brand. Exclusive sales or product launches, brand activations, and other experiential events are a great fit for these spaces, but with the novelty come logistical challenges: permitting/licensing requirements, utilities, and security concerns.
Decision-Making: How to Distinguish Among Different Locations
A scoring matrix is a powerful tool for a business to objectively evaluate potential pop-up shop sites. By managing the myriad details and other variables, you can quantify what matters to your brand and work with numbers, instead of relying on a gut feeling. The process begins with defining key criteria, assigning a weight to each, and then scoring each potential location against those criteria.
Real-World Examples: Pop-Up Hot Spots
New York's SoHo, LA's Melrose, and Miami's Design District are three of the most sought-after locations for pop-up shops in the United States, each with a distinct character that influences the type of brands and experiences they attract.
NYC's SoHo
SoHo is a global destination for high-end fashion and art, known for its historic cast-iron architecture and cobblestone streets.
- Foot traffic: The neighborhood boasts high foot traffic from local professionals and international tourists, a crowd that’s fashion-forward, trend-conscious, and affluent, making it ideal for luxury and designer brands.
- Competition: SoHo is home to flagship stores of major global brands like Louis Vuitton and Gucci, meaning competition is intense. A pop-up here needs a strong brand identity to stand out.
- Cost: SoHo is one of the most expensive neighborhoods for retail space in the world. Daily rents can be steep, but the high visibility and potential for brand validation can justify the price for the right business.
LA's Melrose Avenue
Melrose is a hub of alternative fashion, streetwear, and trendy boutiques, embodying LA's creative and casual-cool vibe.
- Foot traffic: Foot traffic is consistent, particularly on weekends, attracting a younger, more diverse, and celebrity-driven crowd. The area is a magnet for influencers and content creators, making it perfect for brands looking for social media buzz.
- Competition: The street is a mix of independent boutiques and big-name brands. The competition is less about luxury and more about being unique, edgy, and on-trend.
- Costs: While still expensive, Melrose pop-up costs are generally more accessible, and the area offers a range of spaces, from small boutiques to large showrooms, allowing for more budget flexibility.
Miami Design District
The Miami Design District is a modern enclave of high-end art, design, and luxury retail, and a newer and more contained environment than SoHo or Melrose.
- Foot traffic: The Miami Design District attracts an extremely affluent and art-conscious clientele. Foot traffic is driven less by casual shoppers and more by destination visitors seeking a premium rich experience.
- Competition: The district is a "who's who" of luxury, so a pop-up here must align with the district's high-end, gallery-like aesthetic.
- Costs: Pop-up costs are very high reflecting the upscale nature of the neighborhood and the quality of the spaces. It's a prime location for brands aiming to make a statement or launch during major events like Art Basel.
Securing Your Space: Understanding Leases & Landlords
When choosing a pop-up shop location, understanding the motivations of landlords, the nuances of lease negotiations, and the importance of timing are as crucial as the physical location itself.
What Landlords Want
Understanding what the landlord wants can give you leverage in negotiations. While a long-term tenant is their ultimate goal, pop-ups provide significant value. They fill vacant spaces, generating income and keeping the space from looking neglected. Pop-ups also create buzz for the entire property or block, which benefits other tenants and makes the location more attractive. Successful, visually attractive pop-ups are good for the landlord’s business — and landlords sometimes use successful pop-ups as opportunities to showcase the space, demonstrating its potential to prospective long-term tenants.
Pop-Up Lease Negotiations
Unlike long-term commercial leases, pop-up shop leases usually consist of a license agreement or a short-term lease. A license agreement offers more flexibility for the landlord and less security for the brand, while a short-term lease provides a more formal, secure arrangement. Key points to negotiate include:
- Costs: In addition to rent, ask about additional costs like utilities, insurance, common area maintenance (CAM) fees, and Wi-Fi. Many landlords will bundle these into an all-inclusive rate for simplicity.
- The "Build-Out" Clause: Be clear about what alterations you're allowed to make to the space and who is responsible for returning it to its original condition. Negotiate for some flexibility here.
- Termination Clauses: What happens if the pop-up isn't as successful as planned? Can you get out of the lease early, and what are the penalties? Conversely, can the landlord kick you out if a long-term tenant comes along?
It's highly recommended to have an attorney review the agreement, no matter how short the term, to avoid hidden costs or legal surprises.
Timing Considerations
The "when" of a pop-up can be as important as the "where." Pop-ups can be seasonal or event-based, aligning with a specific time of year (e.g., holiday gifts in December, swimwear in July) or a major local event (e.g., Fashion Week, a music festival) to ensure a high-density, receptive audience.
Landlords sometimes have periods between long-term leases when their properties aren’t generating income. These can be great opportunities to negotiate better lease terms.
Finally, don’t rush the pop-up. Give yourself ample time for marketing, product sourcing, store design, and permits. Don't force a great idea into a last-minute location.
Successful Pop-Ups: Case Studies
Amika
Beauty brand Amika’s fun, friendly pop-up shop, staged in several cities, invited customers into the brand’s sensory world. The pop-up featured color-saturated bathroom-themed vignettes, appropriate for a product typically used in the shower or tub. As they posed for selfies in a vividly blue tub or orange-hued shower, participants literally immersed themselves in the cheerful, Amika-colored fantasy and created images worth sharing on social media. Participants learned about Amika’s range of products as they picked up samples and spoke with brand ambassadors.
Kettle & Fire
Working with Promobile, bone broth brand Kettle & Fire created a pop-up that walked participants through the story of America’s flawed food system, past and present, and highlighted a pledge made by the brand and its partners to work toward a happier, healthier future.
Staged in New York City’s SoHo neighborhood, the six-part experience led guests into a mock grocery store where they shined flashlights on shelves stocked with traditional Thanksgiving items; blacklight text revealed the herbicides and additives in seemingly wholesome foods. On a lifesize projection wall, guests learned about changes in farming practices over the last 100 years, then explored how meat, chicken, and vegetables have changed in ways that reduce nutrient density. The journey concluded on a hopeful — and delicious — note, with a luxurious table set with a wholesome Thanksgiving menu curated by a chef/influencer. On the way out, guests passed through a curated pantry showcasing sustainability-minded brands.
Tazo & Cafe Collective
For a Los Angeles pop-up beverage brand Tazo partnered with producer/actor/writer/entrepreneur Issa Rae to promote Cafe Collective, a network supporting local, independent cafes. Tazo teamed up with Rae to launch the sampling pop-up in an indie coffee shop.
Centered around the Tazo Passion Twist, a new drink curated by Rae, the event invited indie shop owners to join the Collective, which celebrates independent cafes and the role they play in their communities.
