Pop-Ups Earn Place In Retailer’s Strategy

On the latest episode of the E-Commerce Retail Briefing podcast:

Pop-ups have shifted into a useful retail strategy. Previously, most pop-ups were used as experiential marketing exploits, fashion-week stunts, or e-brands making their first leap to brick-and-mortar. Now major brands and retailers are using the short-term commitment of pop-ups to test locations or collections.

• Gap Inc. is working to improve its logistics as they prepare for Old Navy’s spin-off. In a company blog post, Gap. Inc. announced that its Banana Republic and Athleta brands are launching buy online, pick up in-store services. Customers will be able to pick up their orders within five days of purchase and will receive order updates by email or text. It’s a smart business tactic with more and more consumers utilizing buy online, pick up in-store services at other businesses. Target and Walmart lead the way and other retailers increasingly report it as an important element in their strategy.
• Adidas, Levi’s, Michael Kors, and Warby Parker are among some of the brands testing out a new Instagram feature. The new feature lets consumers set reminders for products when they’re available for purchase. Brands are able to show previews of products and let customers tap a digital sticker in an Instagram Story or launch tag in their feed to set a reminder. Users will then get a reminder 15 minutes before the product drops. The new feature could help brands drive direct sales after promoting products to dedicated followers.
• Research from Snap and NCSolutions has revealed that while a majority of Gen Zers aren’t the primary purchasers in their households, delivering ads to them still sways sales. According to the research, 63% of sales were linked to Snapchat ads seen only by Gen Z users, but not seen by primary shoppers. The number then jumped by 12% when seen by the Gen Z user and the main buyer. According to Snap’s Marketing Science Group Lead, this is, ”the first marketing research to show that Gen Z has a powerful, tangible influence on CPG purchasing as a direct result of being exposed to ads on Snapchat.”

Pop-Ups Increasingly Beneficial Strategy For Retailers

Pop-up stores are becoming a popular retail strategy for small and big brands alike. Previously, most pop-ups were used as experiential marketing exploits, fashion-week stunts, or e-brands making their first leap to brick-and-mortar. Now brands like Amazon and Nordstrom are using pop-ups to test the viability of stores in certain markets.

Part of the appeal of a pop-up is that it poses little risk for retailers. Executives can commit to a shorter length of time and see how things perform. Retailers can test collections or locations on a smaller scale before jumping in all the way.  

Even Lululemon has made pop-ups a part of their strategy. Their Executive Vice President said they had opened 60 seasonal stores in the past year. More than 35% of those shoppers were new and that the locations would inform the company’s choices on where to expand.