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Mom and Pop-Up Stores Woo NYC

Posted by Barry Silverstein on June 23, 2010 12:00 PM

Pop-ups are hot, and we're not talking about websites.

There was a time when "pop-up" referred to the windows of additional information that popped up on websites. Increasingly, though, pop-ups mean branded stores that appear for what seems like just an instant and disappear just as quickly.

Pop-up stores have been growing in, er, pop-ularity over the past few years as retailers and product marketers look for new, breakthrough ways to make an impression on consumers. Part of the reason could be the soft economy.

They've been particularly popular in New York, where brands without a retail presence—such as Target, which doesn't have a location in Manhattan—have successfully launched limited shops in empty stores in high-traffic areas.

Target's spring 2010 tie-in with Liberty of London proved so popular, its midtown NYC pop-up (seen above) attracted celebs including Naomi Watts, and closed early when the cheery floral merchandise sold out ahead of projections.

As the New York Times notes today, "given the economic climate, there is no dearth of empty high-visibility retail space, and opportunities for pop-ups still seem strong." In the , pop-ups are one way to fill unrented commercial space, and developers like the idea for more reasons than generating income.

For example, the Architectural League of New York took a 3,100-square foot storefront for two months and used it for a photography exhibit. Dennis P. Brady, the managing director at Jack Resnick & Sons, the building owner, told the Times, "We are not making any money on the deal but we thought it might be good to show a little life on the street. We figured it's good for the neighborhood, good for the store and good for the building."

Ellen Baer, president of the Hudson Square Business Improvement District, where the Architectural League leased its space, added: "It helps to showcase available spaces, it brings foot traffic here that might not otherwise come to this neighborhood, and it provides people with activities that are consistent with the theme and vibe of the neighborhood."

As a retail mecca, New York City has naturally a hot-bed of pop-up activity. Pop-ups continue to be plentiful around such holidays as Halloween and Christmas, when retailers put on a push for holiday-related merchandise sales in a short period of time.

But lately, says the Times, pop-ups are popping up all over the city, regardless of the time of year. (Racked does a nice job of tracking them.)

Gap is so enamored of the concept that it has allocated space at its midtown store on Fifth Avenue to permanently showcase pop-ups year-round, with past installations featuring co-branded merchandise from the likes of hip French retailer Colette, AIDS fighter (RED) and other limited collaborations.

Marketers see the wisdom in a quick burst high-impact storefront. Charles Gibb, president of Belvedere Vodka, tells the Times, "The great thing about a pop-up space is that it allows you to have one very consistent, very clear and very distinct message around the brand."

Jeffrey Roseman, EVP of developer Newmark Knight Frank Retail, tells the Times that pop-ups can also function as a kind of test drive for retailers who might be considering a longer-term lease: "It's like taking the car out for a spin before you buy it."

Roseman, like New Yorkers, is clearly a fan of pop-up stores: "I think they're here to stay; it's great advertising."

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