Nov 17, 2010

Retailers sprinkle pop-up stores across holiday landscapeBy Darrell SmithMercuryNews.com

Sacramento, CA — Pop-up stores are making their presence felt in time for the holidays.

These short-term outlets — known as specialty retailers in the industry — are not a new concept; holiday mainstay Hickory Farms is one of the oldest examples.

But stores large and small are using the approach to pounce on peak holiday traffic, test-drive new locations or audition for a permanent mall storefront without the costs of a long-term commitment.

And mall landlords battling high vacancy rates in a shaky economy are happy to oblige, offering short-term leases to fill open storefronts.

Even if the shops are temporary, pop-ups are taking vacant space off the market, said analyst Garrick Brown, research director for Northern California at real estate firm Cassidy Turley BT Commercial.

“For gift-oriented stores, it makes perfect sense,” Brown said. “Why carry rent for a whole year?”

It made sense for Toys R Us. The chain has aggressively seized on the opportunity to open seasonal “outposts,” or test locations.

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