Running a business requires getting at least the basics right, from setting it up to organising the daily operations that ultimately contribute to the business’ growth.
If you’re in the retail business, one such practice that you’ll find beneficial is setting up a temporary retail space. This is a short-term storefront that can be set up in any vacant floor space in a commercial property. The storefront is considered temporary if it lasts for only a few months. You can also rent a commercial space if you don’t have a place of your own.
A temporary retail space has several benefits to a business, regardless of the size. This is because whether it’s a start-up or an already established company, it’ll gain visibility, increase brand recognition, and maximise revenue generation. Also, more businesses are adopting the use of temporary retail spaces, and this goes to show how beneficial they are.
So, how exactly does a temporary retail space benefit your business? Below are the ways that could make you consider setting one up:
1. Through affordability
Businesses can benefit significantly when they cut costs. This is because costs directly affect the revenue, and subsequently, the business’ growth. So, the affordability of retail stores and spaces is a beneficial factor every business owner should consider. Looking at temporary retail spaces, they cost less than most conventional retail stores. For example, if you live in London, you can rent any affordable Hackney retail space for even just a day instead of building a retail store. This means a reduction in business costs, especially if you’re just starting up. (1)
Moreover, you can close down the temporary space during low seasons or in low-sales areas to avoid extra costs. If you’re renting the temporary space, you can time it with high-sale seasons to increase returns while incurring fewer expenses. (1)
2. By enhancing customer experience
Customer experience is so crucial in business, yet it’s easy to get it wrong. For this reason, many businesses try different ways to enhance their buyers’ customer experience. One way to do this is by setting up a temporary retail space. The store can help foster interactions between your team and both potential and existing customers.
While interacting with customers, you can collect useful feedback about your products and services. The information can then be used to improve both products and services. Additionally, the temporary retail space can be used to conduct customer experience surveys. The collected data can be used to create buyer personas and, in turn, help you understand better which areas need to be improved to offer a better customer experience. (2)
3. By increasing brand awareness
A study shows that about 66% of retailers launched a pop-up shop to increase brand awareness. When placed strategically, a branded retail space can help increase the visibility of your business. You can use set up marketing materials in your pop-up store that can create a buzz and drive more awareness about your brand. (3)
The stores also help to reach more customers and deliver services more smoothly. For example, there are some temporary retail spaces that are portable and can be taken to where most customers are. Moreover, businesses can use the temporary stores to try different brand strategies, such as in-person marketing campaigns, before committing to a specific in-store branding strategy. (4)
4. By lowering your business risks
Before committing to any business, you first have to assess the risks you’re likely to encounter. The most common risk in retail business is lack of sales. For instance, you spend thousands on a product launch only for it to be received poorly by customers, or you invest in setting up a business in a location that ended up with low sales. Such risks in sales are detrimental to the business and, therefore, should be mitigated as early as possible.
One best way to cut business risks is by using a temporary retail space to do a smaller, more affordable, and less risky test launch of new products. First, as mentioned earlier, they are affordable, hence cutting down costs when no return is guaranteed. Second, it allows you to make the next business move depending on how your product has been received in the market. Thus, several unforeseen business risks are significantly managed. (2)
5. By encouraging spontaneous purchase
Products in temporary retail spaces can be perceived as limited editions by buyers, driving the need to buy right away to avoid regrets later. The stores can influence how people shop as they don’t want to miss out on the moment. So, if you want to encourage buyers to buy immediately, you can set up pop-up stores. (1)
Additionally, it could be a great way to sell products that have otherwise been on a low sale. If you’re selling them at a discount, a pop-up store is an ideal setup as you can make it product-specific. Hence, customers will be drawn to the retail space for that specific product, especially with the help of promotional messages.
Conclusion
Running a business requires several smart strategies, and getting a temporary retail space is one of them. With this type of commercial space, you can build your brand and test different strategies before scaling your business, to mention a few. The benefits discussed in this article can’t be downplayed. So, getting a temporary retail space should be a consideration if you want to grow your business with fewer costs and risks.
References:
- “6 Benefits Of Pop-Up Shops”, Source: https://retailorsgroup.com/6-benefits-of-pop-up-shops/
- “4 Advantages of Retail Space Rental”, Source: https://www.lettingagenttoday.co.uk/-/2021/1/4-advantages-of-retail-space-rental
- “Infographic: Why Choose Short-Term Retail”, Source: https://www.thestorefront.com/go/infographic-why-choose-short-term-retail/?utm_source=Triggermail&utm_medium=email&utm_campaign=Post%20Blast%20%28bii-e-commerce%29:%20Pop-up%20shops%20are%20paying%20off%20for%20retailers%20%7C%20Jetblack%20shoppers%20spending%20%241%2C500%20per%20month%20%7C%20Amazon%20Go%27s%20implementation%20challenges&utm_term=BII%20List%20E-Comm%20ALL
- “3 Advantages Of Setting Up A Pop-Up Shop”, Source: https://www.entrepreneurshipinabox.com/24912/3-advantages-of-setting-up-a-pop-up-shop/
Read more:
How A Temporary Retail Space Benefits Your Business