Pop-up store trend could be on its way out
Jeremy Hobson: Today, we’ll hear from chain stores
like Costco and Target about how well they did last month. They’re expected to show an uptick
in sales despite the effects of Hurricane Irene.
But one thing is changing in the retail world. Last year, there was so much vacant store space that commercial landlords were cutting deals left and right to attract tenants.
But as Marketplace’s Jennifer Collins reports, the cheap retail space isn’t as easy to find anymore.
Jennifer Collins: If it seemed like every time you turned around last year, another store popped up — you were not mistaken. More than 5,000 temporary retail outlets opened — and may have closed. Over 600 of those belonged to Toys ‘R’ Us. Faith Hope Consolo is a real estate broker.
Faith Hope Consolo: There was a lot of vacant space and they had an opportunity to fill those spaces at very nominal cost. But that’s not what it’s about today.
Toys ‘R’ US says it’s cutting back on holiday pop-up stores this year, and it may not be the only retailer.
Eric Anton is with president of PopUpInsider. It matches landlords with temporary tenants.
Eric Anton: Retail values have come up over the last 12 months. So maybe we’ll see more long term tenants signing leases. So maybe fewer pop ups.
Anton says pop-us will live on as concept stores that build buzz and test consumer preferences. But last year’s bubble may have — (popping sound effect).
I’m Jennifer Collins for Marketplace.
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