The pop-up store: a great way to test your business concept

Do you have plans to open a physical shop but hesitate to sign a traditional commercial lease straight away? Or are you already a retailer looking to grow your business or launch a new product? Then a pop-up store might be the ideal solution.

What is a pop-up store?

A pop-up store is a temporary shop that operates for a limited period, ranging from a few days to a year. Pop-up stores first appeared in the United States at the end of the '90s and gradually spread to Belgium from 2010 onwards. 

Pop-up shops allow you to test your concept, products and target market over a limited period. They’re suitable for both aspiring entrepreneurs and established brands wanting to try something new.

Specific legal framework

The government has created a specific legal framework for pop-up stores, offering several clear benefits for tenants:

• The lease duration is limited to a maximum of one year. However, you can sign multiple consecutive contracts, for example two of four months each.
• You can terminate the lease early (by registered mail) with at least one month's notice. The landlord cannot terminate the contract without a valid reason.
• You’re allowed to carry out modifications to the premises, provided you inform the landlord in writing. The work must comply with the terms of the contract. At the end of the lease period, the owner may ask you to restore the space to its original condition.

Who benefits from a pop-up store?

Since their advent, pop-up stores have become a powerful marketing and sales tool. The format now appeals to all types of retailers — from local designers to multinationals, young entrepreneurs, luxury brands and online shops. Regardless of the maturity stage of your project, pop-up stores offer distinct advantages and can help you achieve a wide range of business objectives.

Future traders

A pop-up shop is a great opportunity for young entrepreneurs to test a business idea and take their first steps into retail at low cost. It allows them to trial their concept, products and market in real-life conditions. It also offers the chance to explore the retail profession while limiting the risks in case things don’t work out.

Artists and artisans

The pop-up store trend also appeals to many artists and artisans, who often collaborate and use a space for a limited time to share efforts, cut costs, boost customer numbers, and potentially secure a larger or better-located sales outlet.

Online stores

For companies that only have an online presence, a temporary store is the perfect place to meet and engage with their customers. A pop-up store enables brands to interact with their customers in person and allows them to experience the product.

Luxury giants

Luxury brands are also embracing the pop-up trend. Luxury giants see pop-up stores as an opportunity to create events and offer unique, innovative experiences to attract more customers and present a more modern image. These brands often embrace creativity, playing with the concepts of personalisation and gamification.

Benefits for property owners and public authorities too

The benefits of the pop-up are not just enjoyed by traders and their customers, but by property owners and public authorities too. Obviously, renting out a commercial space for a short period of time earns the owner an occupancy fee.The temporary occupancy of a unit also allows its (re)development and combats commercial vacancy. This contagious phenomenon can have significant consequences for the unit's direct surroundings. Encouraging temporary occupancy to combat commercial vacancy or the commercial decline of certain shopping districts ultimately leads to the urban revitalisation of a street or district.

Opening your pop-up store: tips

Do not confuse pop-up with haste

An action of this type requires thought and preparation beforehand. For the pop-up store to be a success for everyone, it is essential to understand the project both in terms of location and layout as in terms of communication and the mobilisation of stakeholders.

Business plan

Just as with the opening of a permanent store, a business plan is necessary for preparing to open a pop-up store. This business plan should cover aspects such as defining the target audience and their needs, setting a budget, and establishing financial objectives for the project.

Choose your location

In according with the objectives previously specified, you will then have to determine the duration of the pop-up store (three days, one month, several months, etc.), the location, the type of space (store, workshop, corner, etc.) and the layout of the interior/exterior.

Consider a location with heavy foot traffic to improve your chances of conversions. Contact a local real estate agent to help you find available spaces or check out these platforms that list temporary spaces for rent:

• Pop Media
• Nomadness
• or Entrakt

The hub.brussels' Retail Unit can also help you choose the right district(s) for your concept/product.

Short-term commercial lease

The next step is to determine how long the pop-up store will be open, the layout and the type of occupancy contract. Since May 2019, Brussels traders have been able to enter into a short-term lease agreement of up to one year. This is a way for the Brussels-Capital Region to boost trade, encourage young entrepreneurs to start up and allow the creation of innovative concepts.

As a short-term commercial lease is an exception to the standard long-term commercial lease, the contract must be drafted in line with the specific legal requirements. If not, the lease will automatically fall under the standard commercial lease regime.

Lastly, even if the occupancy is short-term, the rules for urban planning, environment, authorisation to open a business, waste management, etc. must be respected.

Event marketing

To make the most of the occupancy time, it is essential to establish a communication plan and communicate before the pop-up store opens.

Also, organising a schedule of events spread out over the entire duration of the pop-up helps maintain momentum and attract new potential customers with each activity. Depending on the nature of the pop-up, events can include workshops, product presentations, talks, meet-ups, tastings or other activities. It is, of course, important to ensure that the events are consistent with the pop-up's overall theme and purpose.