Pop-up retail worth 2.3 billion pounds to UK economy

The pop-up retail sector is growing at 12.3 percent and is currently now worth 2.3 billion pounds to the UK economy, according to ‘Britain’s Pop-Up Retail Economy’, the second annual report into the pop-up sector from Centre for Economics and Business Research (Cebr).

The report, commissioned by EE, found that pop-ups now account for 0.76 percent of total UK retail turnover, up from 0.6 percent the year before, an increase of more than 200 million pounds in sales, plus the sector now employs more than 26,000 people.

Britain is now host to more than an estimated 10,000 pop-ups, according to the report, and the Cebr has found that the sector is growing much faster than predicted, with 12.3 percent more revenue this year versus 8.4 percent last year, which it states is largely due to a rise in the number of customers as well as an increased average spend.

The lines between pop-up and traditional retail is also becoming more blurred the report reveals, with well-established retailers and online brand using pop-ups to test and expand into new locations and showcase new product lines. For instance, H&M is currently hosting a pop-up in East London for its Divided collection, American brand Free People is testing the market with a store on the King’s Road, and American Eagle Outfitters have a pop-up dedicated to its denim offering inside Old Street Station.

In the past 12 months, eight percent of retailers report having launched a pop-up, while 10 percent said that they plan to open one in the next five years.

Pop-up retail sector growing at 12.3 percent with a turnover of 2.3 billion pounds

Despite this growth, technology continues to hold the sector back, as over 40 percent of small retailers are still unable to take card payments and 25 percent say they have lost sales because they don’t have sufficient stock management systems in place.

To help retailers overcome these challenges and to support the rapid growth in the pop-up sector, EE is launching EE Connected Retail, a new range of 4G products to help retailers run a smarter shop. From pop-ups to established retailers, Connected Retail provides businesses with a superfast 4G tablet, a contactless iZettle payments device and POS software Shopwave. Connected Retail can save retailers up to 80 per cent on traditional POS systems.

Mike Tomlinson, director of small business at EE, said: “The pop-up sector is rapidly evolving…The sector’s growth is driven by retailers and brands of all sizes using pop-ups to create new experiences, products, and locations for their customers.

“With Connected Retail from EE, we’re providing 4G connected products designed specifically to help temporary and permanent retailers be even more flexible and productive – getting them online quickly, and helping them to engage with customers via social media, take payments, and manage inventory.”

Ross Bailey, founder and CEO of pop-up space specialist Appear Here added: “This report highlights how important the pop-up sector is becoming to the UK economy. With so many traditional retailers using pop-up shops and so many pop-up retailers moving onto long-term rents, we should no longer be looking to draw a line between traditional retail and pop-up retail – it is all just retail.

“We're seeing brands and retailers from all backgrounds incorporate pop-up retail into their retail strategy. Since launching in 2013, Appear Here has grown by 500 percent year on year and currently generates 14m pounds in request value per month, a number which is increasing month on month. This is a testament to the growth of the industry.”

Image: H&M pop-up