Pop-up stores are all the rage in Singapore as mall vacancies mount

More retailers will jump on the bandwagon soon.

Struggling mall landlords are turning to short-term pop-up stores in a bid to combat rising retail vacancy rates.

Heidi Yong, Head of Retail Services at Knight Frank, noted that the pop-up store concept appeal to tenants because short tenures allow retailers to test the market without inking long commitments.

“Online retailers welcome such options as it allows them to transcend the online sphere intermittently into the brick and mortar scene. Other retailers may take on these short-term leases to gain a better understanding of the location, as they consider whether to commit to a longer-term lease in the mall and could do so if it is well-received,” Yong noted.

These pop-up stores have leases of just three to six months. Some are carefully renovated to accommodate themes and festivities, but most have simple set-ups to achieve time and cost savings.

Although the pop-up store has its charms, Yong warned that too many temporary stores might impact a mall’s branding in the long run.

“Over time, having too many barely-fit-out pop-up stores could impact the overall appeal and branding of a mall. Featuring well-curated tenants, could, however, introduce greater variety and an interesting dimension to the mall,” she said.