As a small business owner, finding new and innovative ways to get your products into your customers’ hands can be an exciting yet challenging task. A pop-up shop is one effective strategy, allowing you to interact with customers in person while they engage with your products and brand, boosting sales in the process.
If you’ve been thinking about adding a physical presence to your online business but are put off by the cost and commitment, a pop-up shop could be the solution for you. In this post, we’ll explore why now is the time to test the retail waters, as well as offer a step-by-step guide for launching, marketing, and evaluating the success of your pop-up shop.
Whether you’re a seasoned seller or a budding entrepreneur, this comprehensive guide can help you succeed with your next pop-up shop.
What is a pop-up shop?
A pop-up shop is a type of retail store that opens for a limited time in a specific location, like an empty retail space, an existing physical store, or a food or art market. Pop-ups can take many forms, including booths, kiosks, or compact freestanding stores.
A business may start a pop-up in response to trends or seasonal demand, to test consumer demand for new products or services, or even to trial a temporary retail space.
The pop-up concept, also known as flash retailing, is an ideal opportunity for emerging, digitally native brands to try new and unique shopping experiences that online platforms can’t replicate. Importantly, with a pop-up, you don’t have to take on the financial risk and commitment of a permanent storefront to participate in brick-and-mortar retail—you’re simply stocking your products in an existing space.
What are the benefits of a pop-up shop?
- Creates an in-person connection
- Generates buzz
- Tests potential physical locations
- Offloads older inventory
If you’re considering expanding your ecommerce business into brick-and-mortar stores, launching a new product line, or pursuing a new target market, a pop-up venue may be your first step.
Creates an in-person connection
In-person shopping remains attractive to most consumers, according to a 2024 IBM Institute for Business Value study. The global study of 20,000 consumers reported that 73% turned to physical stores when buying goods. Like traditional stores, pop-ups allow you to connect with your customers for an immersive personalized shopping experience. Since you’re engaging with shoppers on a more intimate level, it can be easier to build customer loyalty.
Generates buzz
A temporary pop-up shop with a definitive end date taps into a shopper’s fear of missing out (FOMO). This tactic leverages a form of aspiration-based marketing known as FOMO marketing. FOMO marketing is behind 60% of sales, an indicator that for many shoppers it’s reason enough to buy.
Tests potential physical locations
Pop-up shops require less upfront investment than traditional brick-and-mortar stores, which makes them an ideal testing ground. A successful pop-up shop can be an indicator that your business is ready for expansion into a physical retail store.
Offloads older inventory
Pop-up stores can be an effective means to sell old inventory. Incorporate visual merchandising elements into fresh displays to attract new shoppers. Offer special deals—such as buy one, get one free (BOGO) or product bundling—or other strategies to encourage impulse buys.
Types of pop-up shops
There are numerous types of pop-up shops to consider, depending on your business needs and goals. Here are some examples:
Marketing event pop-ups
Marketing event pop-ups are the type of pop-up brands use to generate buzz around a new product launch, rebranding campaign, or business launch. Your pop-up store can serve as part of your overall marketing strategy for your retail business.
Seasonal pop-ups
Seasonal pop-up shops leverage seasonal characteristics to drive traffic and increase sales. The most common type of seasonal pop-up is the holiday pop-up shop. For some businesses, these shops tap into peak shopping season, which accounts for more than a quarter of their annual sales.
Chicago’s Christkindlmarket is an example of a seasonal market where businesses create pop-up stores. Open from mid-November to near the end of each year, the Christkindlmarket offers consumers an interactive holiday event featuring locally made goods from dozens of vendors to purchase as gifts.
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Experimental pop-ups
As the name implies, an experimental pop-up is one where a business experiments with new products, markets, merchandising, or retail experiences before launching on a bigger scale.
Experimental pop-ups enable businesses to be innovative, test ideas, and bring creative products or concepts to an audience they might not otherwise reach. Take the MOMENT Marketplace pop-up that debuted in October 2023 as part of Google headquarters’ visitor experience. It’s an experimental pop-up offering a rotation of themes for its showcase of goods by local artisans. This type of pop-up can also enable business owners to gather valuable data about customer reactions and feedback.
Virtual pop-ups
Virtual pop-up shops offer an interactive virtual shopping experience where customers have the opportunity to browse products in a digital storefront. These types of pop-ups simulate in-person shopping by allowing customers to virtually walk through your store and engage with your brand.
Unlike a traditional ecommerce website, virtual pop-ups are an interactive 360-degree shopping experience.
Shop-in-shops
A shop-in-shop is a shop set up within an established store. Retailers typically rent a portion of a store or boutique as a place to sell their products. Launching a pop-up in a store leverages the larger store’s existing foot traffic, helping you save money on rent and décor in the process.
💡 PRO TIP: Tap to Pay on iPhone for Shopify POS is the fastest way to start selling your products at events, farmers markets, or wherever your customers are. Download the Shopify POS app on your iPhone to accept contactless payments without having to buy hardware or a card reader.
How to set up a pop-up shop in 7 easy steps
- Choose a type of event space
- Pick a pop-up shop location
- Decide the shop type, interior, and exterior
- Collect any necessary legal paperwork
- Book your pop-up shop venue
- Market your pop-up
- Measure success
There are clear steps to be taken when deciding it’s time to set up your pop-up store. Here’s what you need to know:
1. Choose a type of event space
It’s important to find the right spot for your pop-up store. Consider working with a retail agent, networking with other small businesses within your community, or tapping into apps to discover available spaces. When evaluating a retail space, request a comprehensive estimate of your monthly payment, and what it includes.
There are a number of common spaces used for pop-up shops:
- Vacant storefronts
- Shopping centers or malls
- Shop-in-shops
- Galleries or event spaces
- Pop-up buses or other mobile options
2. Pick a pop-up shop location
To pick the best location for your pop-up store, it’s important to conduct market research. This includes choosing a location based on factors such as accessibility, foot traffic trends, target demographic, and leasing costs. The questions you should consider asking at this stage include:
- What are the shop’s goals?
- How much rent or leasing cost is affordable?
- Is the neighborhood or street considered a high-traffic area?
- Are the passersby target customers?
If you’re looking to launch a new swimwear collection, somewhere near a beach might be best. If you’re trying to decide whether to make a permanent move into physical retail, use any currently available sales analysis data to figure out where most of your existing customers are.
💡TIP: To see where your customers are located and if they’re congregated in certain cities or neighborhoods, view the “Customers by location” report in Shopify admin.
3. Decide the shop type, interior, and exterior
Deciding the appropriate interior or exterior type includes knowing and understanding your audience, its needs and wants, and design psychology. If using an existing retail space, is the retail store layout and design suitable for your merchandise?
The way your shop looks on the inside and outside also depends on the types of products or services sold. For example, if you are a seller of kites, you might set up an open-air concept pop-up shop to mirror the airy vibe of your product—and fun, youthful mentality of your shoppers. You can hire a design consultant to help with these tasks.
Here’s a checklist of factors to help in your decision-making:
- Square footage. Is the space big enough to allow shoppers to browse easily?
- Internet access. Is the space Wi-Fi ready? Is high-speed internet access available so your point-of-sale software runs smoothly?
- Stock space. Is there on-site storage or a stockroom to easily manage inventory? How much storage is available to hide visible inventory clutter?
- Anti-theft features. Does the space offer adequate loss prevention measures such as surveillance cameras or alarm systems to help monitor and prevent theft?
- Display space. Is the space equipped with the fixtures needed to display your products or materials?
- Frontage. Does the storefront have a sidewalk for walk-ins and foot traffic? Is the frontage big enough so you can easily manage curbside pickup orders?
- Signage. Does the shop location come with signage and, if so, are you allowed to customize it?
- Parking and public transportation access. Is there free or metered on-site parking? Or is there access to public transit?
4. Collect any necessary legal paperwork
Depending on the region or state where you start your business, your industry, the length of the pop-up shop, your business size, and your number of employees, you may be required to get certain licenses or permits to operate your pop-up.
For example, many cities require a permit to sell food and alcohol. If you plan to serve Champagne at your opening, secure the appropriate permit. Contact your local government agency or chamber of commerce for information on licensing and business permit requirements to ensure you are in compliance.
Additionally, you may need business insurance or commercial insurance. Consult a business risk management expert or firm to make sure the proper insurance policies are in place to protect your business.
5. Book your pop-up shop venue
Contact realtors directly to check if they have any pop-up shop venues available. There are also searchable, online databases where you can book properties yourself. Examples include:
Booking a venue will include signing a retail leasing agreement. Under a lease, the renter is considered a tenant and given exclusive possession for the time agreed to by both parties, otherwise known as the term of the lease. The term will outline what you’re allowed to do in the space, such as modifications, hours of operation, and other key aspects. Review the lease agreement carefully or hire a lawyer to do it for you.
6. Market your pop-up
Get the word out about your upcoming pop-up by working with other local businesses to promote it.
Word-of-mouth marketing can be an effective way to expand your reach. This type of business relationship can help in multiple ways—local businesses may mention your pop-up in their social media feeds; you might offer a free promotion in return. For example, hotel guests may receive a coupon for 10% off one of your unique products.
Use your own marketing channels, like social media and email marketing, to promote your in-person event. Pop-ups can also be a great opportunity to collect contact information that lets you keep in touch with customers (or potential customers) afterward.
You can launch email marketing campaigns and run targeted social media ads to drive shoppers to your online store—and potentially experience a post-pop-up sales bump. Or, you can build customer relationships through email marketing outreach such as newsletters.
7. Measure success
After completing a pop-up, you’ll want to identify its success by assessing if you hit the shop’s goals and target key performance indicators (KPIs).
Conducting a sales postmortem, or evaluating your hits and misses, can help determine whether in-person selling is an effective sales channel for you. Other ways to evaluate your pop-up shop’s success include:
- Examining sales metrics. When conducting sales analytics, consider key retail metrics such as sales by date, customer, product, and employee.
- Tracking foot traffic. You can measure foot traffic using counters such as Dor to learn how many people walk into your store.
- Measuring social media analytics. Social media engagement can drive traffic to your online shop and, conversely, your pop-ups. With the right social media analytics tools, you can track branded hashtags on platforms such as Instagram, YouTube, and TikTok.
Pop-up shop examples
Coming up with ideas for your next pop-up shop can seem daunting, but it doesn’t have to be. Here are three examples of successful pop-ups:
Pop Up Grocer
Pop Up Grocer is a retailer that thought outside the box to create unique, experiential pop-up shops.
Pop Up Grocer is an innovative grocery store with an online presence and flagship retail location in New York City. The next-generation grocer carries more than 600 brands, focusing on smaller, emerging brands that are new, creative, and sustainable.
The grocery store company started as just a 10-day pop-up in Manhattan, in part because it had no money, says Founder Emily Schildt. The concept then evolved into a traveling grocery shop, popping up for 30 days at each city stop. Pop Up Grocer continues to reach new shoppers with its pop-up shops—and it’s not uncommon to find local vendors selling their wares there as well.
💡 PRO TIP: Sending digital receipts via email is a great way to organically collect customer contact information at checkout and build an email list to fuel your retention marketing. Just make sure they’ve opted into hearing from you before sending them anything.
Plant Man P
Plant Man P is a streetwear brand for those who love houseplants. So it made sense to collaborate with the New York location of plant store The Sill to launch a shop-in-shop for its products in 2021.
“We decided to do a t-shirt design reading ’Plant Care Is Self Care’ in the infinity symbol layout, because we believe that plant care is self-care, and vice versa,” says Plant Man P founder Jon Perdomo. “We love that we’re able to go out and meet people in the community and help out in any way we can, whether it’s plant care or self-care and anything else in between.”
Warby Parker
Eyeglass retailer Warby Parker started as a digital-native brand before testing physical retail through a pop-up in a bus. Its experiment proved successful, and the company started opening storefronts. The brand now has more than 230 retail stores, with more planned.
Pop-up shop ideas
Pop-up shops are a dynamic way for businesses to engage with customers, create buzz, and test new markets. Here are some creative pop-up shop ideas to consider:
Seasonal themes
Embrace the seasons by designing a pop-up shop that reflects the current holiday or time of year.
For example, during the winter holidays, you could create a cozy, festive atmosphere with decorations, seasonal products, and themed activities. Think about offering holiday gifts, decorations, or even unique experiences like personalized ornament-making stations.
In the summer, consider a beach-themed pop-up featuring summer essentials like swimwear, sunscreen, and outdoor games. Seasonal themes not only attract customers but also create a memorable shopping experience.
Cotta Ceramics hosts a pop-up shop packed full of Halloween goodies.
Local artisan showcase
Shine a spotlight on the talent in your community by hosting a local artisan showcase.
You can feature handmade goods from local artists and craftspeople, such as pottery, jewelry, textiles, and artwork. Go one step further and build a community by organizing artist meet-and-greets or live demonstrations to engage customers and give them a deeper understanding of the craftsmanship behind each product.
Handicrafts by Rachel hosts a pop-up with macrame products, eco-friendly gifts, and homemade skin care goodies.
Food and beverage tasting
Who doesn’t love free samples? A food and beverage pop-up can draw in crowds eager to try new flavors. Partner with local food producers, breweries, or wineries to offer tastings of their products. You could also create a themed experience around different cuisines or beverages—think wine and cheese pairings or international street food.
Fashion boutique
Set up a temporary fashion boutique that showcases trendy clothing and accessories.
Curate a selection that reflects current fashion trends or caters to a specific demographic—such as athleisure wear for fitness enthusiasts or vintage-inspired pieces for retro lovers. You can create a personalized shopping experience with styling sessions or fashion shows featuring local models.
Warby Parker teamed up with Cat Bird NYC to bring shoppers a new line of sunglasses.
Beauty and wellness
Give shoppers a little R&R with a beauty and wellness pop-up shop that focuses on self-care products and services. Offer skin care consultations, makeup tutorials, or even mini spa treatments like facials or massages. Feature local beauty brands that prioritize natural ingredients or sustainable practices.
The Sunday Standard showcases the latest beauty products.
DIY workshops
Create an interactive learning experience for your customers by hosting DIY workshops at your pop-up shop. These hands-on sessions can range from crafting homemade candles to painting pottery or creating personalized jewelry. Not only do these workshops provide a fun activity for attendees, but they also allow participants to take home something unique that they created themselves.
Pop-up café
Combine retail with relaxation by opening a pop-up café within your shop. Offer specialty coffee drinks, artisanal pastries, or light bites that complement the shopping experience. A cozy café space encourages customers to hang around a bit longer, which ultimately increases the chances of them buying something. You could also consider hosting events like book signings or live music nights to add another dimension to your pop-up café.
Renting a pop-up shop
The beauty of the pop-up model is you’re not tied into lengthy, restrictive leases. Instead, you’re essentially renting the space for a limited period to showcase your products or services.
When scouting locations, look for spaces that offer flexibility in terms of size and layout. Some options include:
- Retail stores. Collaborate with existing retailers to take over their space during off-hours or slow seasons.
- Marketplaces. Consider shared spaces in local markets or community centers where you can reach diverse audiences.
- Event venues. Look for opportunities at fairs, festivals, or trade shows where you can set up a temporary shop.
Once you’ve found the perfect spot for your pop-up shop, it’s time to get down to business. Pop-up leases are a whole different ball game compared to regular ones, so you’ll want to hash out the details on how long you’ll be there and what it’ll cost you. Don’t forget to ask about those sneaky extra fees like utilities or insurance.
💡 TIP: Some landlords might even be open to flexible pricing based on how well you do.
Make sure you’re not breaking any rules—check if you need any special permits or licenses to operate. Once that’s sorted, it’s time to make your space shine. Think about how you want your brand to look and feel. Use your brand colors, throw up some eye-catching signs, and create a navigable layout. Good lighting, the right tunes, and maybe even a signature scent can keep customers hanging around longer.
Moving forward with your pop-up shop
Pop-up stores aren’t just a way to generate quick sales—they can be part of your overall brand strategy. It’s a powerful way to reach new audiences and retain existing ones, establish an accessible path to test ideas and gather data, and effectively build buzz and brand awareness.
No matter how consumer trends evolve, one aspect of pop-ups will likely remain unchanged: Pop-up shops offer an affordable first step into physical retail for digital brands and entrepreneurs wanting to connect with their community.
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Pop-up shop FAQ
How long does a pop-up shop typically last?
A pop-up shop typically lasts anywhere from a few hours to several months, depending on various factors, such as the business goals, location, and customer demand. Short-term pop-ups can create urgency and buzz, while longer durations allow for deeper customer engagement and relationship building.
What permits or licenses do I need for a pop-up shop?
You’ll typically need a few key permits and licenses for a pop-up shop, but it really depends on where you’re setting up and what you’re selling. At the very least, you’ll probably need a temporary business license from your local council, and if you’re selling food or alcohol, you’ll need specific permits for those. It’s best to check with your local authority early on, as they can guide you through exactly what you’ll need for your particular pop-up shop.
How much inventory should I have for a pop-up shop?
A good rule is to curate a selection that reflects your target market and theme, making sure you have enough stock to meet demand without overwhelming your space. It’s a good idea to focus on best-sellers or exclusive items, but keep a close eye on inventory levels throughout the event to avoid running out of popular products or having excess stock that could cut into profits.
What is meant by pop-up shop?
Pop-up shops are temporary brick-and-mortar stores that retailers use to launch new products, validate new target audiences, and build brand awareness. A brand will often open a pop-up retail shop in high-traffic areas like malls or commercial areas.
How much does it cost to set up a pop-up shop?
The cost to set up a pop-up shop varies significantly. It could cost as little as $5,000 or less, or up to $25,000 or more, depending on the type of shop you open, where it’s located, and other factors.
How do pop-up shops make money?
Pop-ups make money through retail and online sales. Pop-ups allow customers to interact with a brand face-to-face, address any concerns, and influence a shopper’s buying decision.
How do you advertise a pop-up shop?
You can advertise a pop-up shop in the following ways:
- Partnering with influencers and creators
- Building hype on social media
- Running geo-targeted ads on Instagram
- Sharing information about your shop with your email list
