Getting increasingly popular in the booming South African retail sector is the stand-alone store, such as fast food chains, big brand convenience stores and supermarkets, as well as international brands like Burger King. Pop-up shops are becoming ideal solutions for entrepreneurs to sell and promote their business. It is cost effective, with low overheads and does not require the commitment of a full lease agreement contract. New business owners that are looking to expand are choosing pop-up stores as a viable option to mortar and brick stores. However, opening a pop-up store comes with its own set of challenges. Firstly, it is difficult for business owners to find staff and shop assistants that are willing to enter a contract of employment that is on a short-term basis and does not offer long-term financial security. In addition to this, training staff for such a short period of employment is costly for business owners.
Nevertheless, pop-up stores are a booming trend that has broadened thinking in the traditional retail sector. Temporarily opened to take advantage of a seasonal product, or to test the potential of a product or concept in the market, pop-up stores have gained an increasing popularity in South Africa.
Mark Souris, Managing Director of Periscopic Masingita, says, “With the dismal South African economy, entrepreneurs and retail centres are forced to find ways of making additional revenue. Pop-up stores offer many benefits to both the entrepreneur and the shopping centre.”
Shopping centres are seeing some great benefits with the opening of temporary stores. “Instead of having shops that are vacant, landlords are placing pop-up shop tenants, also known as ‘nursery tenants’. This allows the centre to ascertain if the products or services that are being offered are suitable for their target market and if it is worth offering the nursery tenant a permanent lease agreement,” he says.
Souris encourages this development in retail and considers it to be a trend that will continue to be successful. “Our current tough economic situation has opened up new exciting possibilities for creative business and it is giving landlords and management the opportunity to diversify their retail centres,” he concludes.
