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Benefits of pop-up shops

Not having the finances needed to get a great business idea off the ground is a common situation many would-be entrepreneurs find themselves in.

Pop-up shops are a great way to give your business idea a go without the cost or commitment of leasing permanent business premises. They are also a great way for online businesses to trial a bricks-and-mortar store front.

What is a pop-up shop?

Pop-up shops are temporary retail spaces that can be used to promote and sell products of all types, ranging from food and drinks to clothing, gifts or other merchandise.

What are the benefits of running a pop-up shop?

  • Cost savings - rents for a pop-up can be as low as 20 per cent of normal rates.
  • Less risk - short-term leases make pop-ups more affordable and less risky.
  • A chance to test the market for your product; see how well your products sell and seek feedback from real customers.
  • Test the location - see how well your products sell in different locations.
  • Brand awareness - a chance to raise awareness of your product and build brand loyalty.
  • Creating urgency - customers are often more willing to buy immediately if they feel the shop or the item will only be there for a short period.
  • Adding a revenue stream - as an addition to your online business.
  • Lower risk - if things don’t work out, you’re not locked into a long-term lease.

Can existing businesses benefit from pop-up shops?

Pop-up shops can provide a number of benefits for existing business owners too. These include:

  • Stocktake sales - a pop-up shop can be used to clear out old stock.
  • Trial new product lines - test the market to gauge demand on new products you may want to carry in your existing retail location.
  • Expansion - if you already have a retail presence and are thinking of opening additional store fronts in new suburbs, pop-up shops can help you test how well your products sell in different locations.

More information

If you’re interested in finding available pop-up shop locations you can:

  • Speak to the centre managers at shopping centre locations you’re interested in.
  • Look around the retail areas in suburbs you are interested in and contact the listed property manager on any vacant spaces that are available to rent.
  • Search the commercial section of online property websites.

For more information on starting a business, read our 8 steps to starting a business check list or contact our free business advisory service.

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