They turn into a pumpkin at midnight… but they’ll be back for Christmas.
They’re popup retail. Blink and you can miss them.
These temporary stores, which often appear during specific holidays or events, are increasingly filling the void left by permanent retailers that have been forced to close due to shifting consumer habits.
Beyond merely occupying vacant spaces, these popups offer unique, time-sensitive environments that attract customers in ways that traditional retail cannot.
The Halloween season provides a clear example of how seasonal retail has grown into a major force within the broader retail industry. Once a relatively minor holiday in terms of retail, Halloween has exploded in popularity, driving billions of dollars in consumer spending each year.
Spirit Halloween, for instance, plans a record-breaking 1,525 temporary locations across the United States and Canada for the 2024 spook season..
These stores, which typically operate from late summer until the day after Halloween, transform empty storefronts into themed shopping environments, drawing consumers into physical stores at a time when many are gravitating toward online shopping.
Halloween City and Party City have also expanded their presence, setting up temporary outlets in vacant big-box stores, malls, and strip centers. These retailers capitalize on the same trends, offering a one-stop shop for all things Halloween and creating a sense of urgency among consumers who know these stores will only be around for a few short weeks.
The growth of these Halloween popups is a reflection of broader consumer trends.
According to the National Retail Federation, Halloween spending has consistently increased over the past decade, with consumers expected to spend more than $10 billion on the holiday in 2024. This includes spending on costumes, decorations, candy, and party supplies—all categories that these seasonal retailers specialize in.
The ability to quickly set up and tear down stores, combined with the ability to create a themed, immersive shopping experience, has made Halloween popups a crucial part of the holiday's retail ecosystem.
Throughout the year, a wide variety of holidays and events see the rise of temporary stores that cater to specific consumer needs. Christmas is another major season for popup retail, with Christmas markets and holiday-themed stores appearing in cities across the country.
These Christmas popups often take over vacant storefronts in downtown areas or underused public spaces where holiday foot traffic increases.
In addition to Christmas markets, other holidays like Valentine's Day and Easter, also see the rise of seasonal popups. These stores, often located in malls or high-traffic areas, offer a range of holiday-specific products, from cards and chocolates to decorations and themed apparel. By focusing on a narrow range of products that are in high demand for a short period, these popups are able to generate significant sales in a relatively small window of time.
One of the key factors driving the success of these seasonal outlets is their ability to create a sense of urgency among consumers by creating a "get it before it's gone" mentality, encouraging consumers to visit and make purchases before the store disappears. This model not only drives sales but also generates excitement and anticipation, turning shopping into an event rather than a routine task.
The Fourth of July, notably, trends somewhat differently. While popup fireworks stands are popular in many states, regulatory and safety issues tend to keep them in tents on open ground, rather than in enclosed retail spaces. (Some states do allow ‘fireworks stores,’ which generally operate year round in dedicated spaces.)
One of the most significant benefits of the rise of popup retail is its ability to revitalize vacant or underutilized retail spaces. As traditional retailers continue to struggle with the rise of e-commerce and shifting consumer habits, many large retail spaces have become vacant. These empty storefronts can be an eyesore and a drain on local economies, contributing to the decline of shopping centers and downtown areas.
Popup stores offer a solution to this problem by providing a temporary use for these vacant spaces. By occupying empty storefronts, popups help to generate foot traffic, support local businesses, and contribute to the overall vibrancy of the area. In many cases, popup stores have been credited with revitalizing struggling shopping centers and bringing new life to downtown areas that were previously in decline.
For landlords, popup stores offer a way to monetize vacant properties while they search for a long-term tenant. Rather than letting a space sit empty, landlords can lease it out to a popup retailer for a few weeks or months, generating income and keeping the property in use. This arrangement is often mutually beneficial, as it allows popup retailers to access prime retail locations at a lower cost than they would typically pay for a long-term lease.
Popup models can also provide retailers with a flexible, low-cost way to test new products and concepts without the long-term commitment of a permanent storefront. This allows businesses to be more agile and responsive to changing consumer trends, which is increasingly important in today's fast-paced retail environment.
Moreover, the presence of popup stores can help to attract other businesses to the area. When consumers visit a popup store, they are likely to explore the surrounding area, potentially discovering other shops, restaurants, or services they were not previously aware of. This increased foot traffic can help to support existing businesses and encourage new ones to open, contributing to the overall economic health of the area.
While popup retail offers many benefits, it is not without its challenges. One of the biggest obstacles is the logistical complexity of setting up and operating a temporary store. Unlike permanent retailers, which have the infrastructure and systems in place to support their operations, popup stores often have to start from scratch. This can involve everything from securing a location and setting up a point-of-sale system to sourcing inventory and hiring staff.
The short-term nature of popup stores also means that they must generate significant sales in a relatively short period to be profitable. This requires careful planning and execution, as well as effective marketing to attract customers. Popup retailers must also be prepared to deal with fluctuations in demand, as consumer interest can vary widely depending on factors such as location, timing, and competition.
While popup stores can be a cost-effective way to test new concepts and products, they also come with risks. If a popup store fails to attract customers or generate sales, the retailer may lose money on the venture. This risk is particularly high for new or unproven concepts, which may struggle to gain traction in a crowded market.
