Toys"R"Us, American Eagle and Others Bet on Pop-Up Stores

Pop-up stores during the holiday season, while not necessarily a new concept, are gaining extra traction this year. Major chains and boutiques alike are selling items in temporary stores in high-traffic areas to make an extra push when retail sales are forecast to come out slightly up at best.

Like any other industry, retailers are looking to scrape out the most favorable financials they can at the lowest possible cost. What these pop-up locations provide are outlets that will garner high foot-traffic numbers without the expensive real estate costs associated with a permanent store.

Ironically, Toys”R”Us, one retailer that is going pop-up crazy during these holidays with its 350 Holiday Express units, already operates its own base of 600 stores across the country. But “the foot traffic in these popular shopping destinations provides a considerable opportunity to assert our toy authority position,” said Jerry Storch, Toys’ chairman and chief executive officer. Plus, it’s a lot less expensive to maintain a pop-store in places like the Natick [Mass.] Collection mall than it is to open a permanent outpost.

American Eagle Outfitters is also testing a new concept as a temporary pop-up store. The apparel chain, which runs 1,000 of its own stores in North America, is trying out 77kids, a children’s online-only concept, at Pittsburgh’s Mall at Robinson for 77 days. Following the test, permanent stores are on tap for next year.

A pop-up Limited Brands launched for its Limited chain in Manhattan’s SoHo area just got more permanent. The Limited store was only scheduled to last four days, but now its parent company will keep it open through the holidays and maybe even look for a full-time location in New York for the chain, which is a fixture in malls across the country.

Large chains aren’t the only organizations flirting with pop-up stores. Smaller boutiques and celebrity brands are experimenting with the medium as well. Even space-rock band The Flaming Lips opened a one-day store in Los Angeles to promote their excellent new record “Embryonic.”

Until the economy, and the retail environment, return to stability, pop-up stores are a safe bet for retailers and others looking to gain whatever edge they can at a low cost in a tough sales climate. If the economy stabilizes, some of them might even become permanent.