ACROSS | The European Retail Real Estate Magazine

Opinion

In the Clash Between Brick-and-Mortar and Click-and-Order, Popups Are the Happy Compromise

Joy Fan, CCO at Storefront. Image: Storefront

Between eBay, Etsy and Amazon, it’s getting harder and harder to ignore the writing on the wall - online retail is here to stay, and it will continue to upend the retail economy.

By Joy Fan

These unicorns are just the frontline of a small army of up-and-coming ecommerce brands that are rewriting the playbook for connecting to consumers. This is prompting even the most reliable retailers to think about how to refashion the traditional brick-and-mortar model for a „click-and-order” generation.

To adjust to a more dynamic and unpredictable market, retail brands are increasingly looking for shorter tenancies to adapt to this increasingly dynamic market. Storefront helps them do just that.

Just as we work and its peers are offering a flexible alternative to the long-term lease for office space, we present an alternative to the long-term lease for retail space. For a variety of reasons, our clients want retail space for less than a year, and in some cases as little as one day.

Some landlords won’t even consider short-term occupancies, hoping that this sea-change is actually just the familiar business cycle. But that’s wrong: retail vacancy rates continue to grow, despite healthy, even booming capital markets and low levels of unemployment. Property owners and brokers who see which way the wind is blowing will open their doors to short-term tenants.

By doing so, they’ll access a whole new generation of ecommerce brands and experiential marketing agencies who are hunting for popup space, and even classic retail tenants experimenting with targeted brand activations, seasonal roll-outs, and market-testing popups.

These owners will also have a new way of dusting off blighted property, reactivating space and showing off its value.  Best of all, they’ll have a new strategy for filling gaps between long-term tenancies or redevelopment plans, optimizing revenue from their retail space.

At Storefront, we see this new retail economy succeeding everyday. We see it on the streets of Paris, London, New York, Hong Kong and Milan. Owners curtail vacancy, brands put on unique and splashy retail events, and consumers are delighted. And we are reminded, once again, that popups are the future of retail.

Follow ACROSS

Download

fb-art 150

Share this article
Opinion

Investing in the future

For many years, shopping centers have constituted a popular and successful asset class that – provided the assets have been well managed – have offered stable returns and high value stability.

Understanding what our guests really want

Those who want to exploit successful Food & Beverage (F&B) locations at high traffic locations would do well to immerse themselves in the needs of the guests. This statement may seem obvious, but it’s really not that simple.

PEOPLE IN THE EUROPEAN RETAIL REAL ESTATE INDUSTRY

Recruitments, promotions and appointments in the European Retail Real Estate Industry.

Reimagining department stores in Europe

Department stores are a key part of the retail mix in Europe. With bleak news about the sector blowing across the Atlantic, we thought it was time to take a close look at just how things were faring here in Europe. ICSC’s research has uncovered both shared challenges and fundamental differences.

Placemaking is not a blueprint business

With the advent of e-commerce, stores are being used by retailers to differentiate themselves from e-commerce platforms, providing shopping experiences that cannot be reproduced at home.

RENOWNED GLOBAL FASHION BRANDS NO LONGER GUARANTEE SUCCESS

Until recently, securing a renowned global fashion brand as a shopping mall anchor was often considered a guarantee for success. This was particularly the case in CEE, where many such retailers were just beginning to enter the market.