Pop Goes The High Street!

Written by Rob Redgrave Wednesday, 16 November 2011 09:57

Continued economic uncertainty and increased tenant administrations have left many landlords with a glut of vacant space and rising operational costs. Temporary shops provide the perfect opportunity for landlords to cover basic expenses with the added attraction of potentially increasing footfall.

During the Christmas season commercial estate agents are often asked to arrange temporary leases. These stores, which only appear on the High Street, for a short time are known in the trade as 'pop-ups'.

 Head of our Agency Department, Rob Redgrave, says "typically we will receive enquiries for temporary lets for galleries in Falmouth, for a T-shirt shop in a town during a festival period, or as was the case in Newquay, we negotiated a lease for Nike to open a shop in the town during the Brand's summer 'Night Surfing' event".

Pop-ups, whilst temporary in their very nature, are growing in popularity across the UK, as illustrated by the opening in London last year of Noel Gallagher's Pretty Green (Carnaby Street - July), Maybelline (Covent Garden - September) and Elizabeth Lau (Carnaby Street - December). This year there is even the prospect of a pop-up mall opening in Shoreditch.

Calendar Club, Lemon Street, TruroA pop-up shop can work well for both larger national and international concerns such as Hawkin's Bazaar the toy retailers, and Calendar Club, both of whom have set up pop-up shops in Truro for the Christmas period. This year Calendar Club are opening 14 stores across the South West, which are a mix of Mall units and shops, together with a dedicated Puzzle Shop store in Plymouth. The business' Property Director, Bill Nettlefield, says "in 2009 we only opened 8 stores in the South West, this year's number is a 75% increase on that".

Brands from all sectors have opened pop-up stores with varying degrees of success. As a concept they can be a great tool for a Brand if used properly, but they can have a detrimental effect on established retailers.

Hawkin's Bazaar, TruroBid Manager for Totally Truro, Neil Scott says "whilst it is good to see a shop occupied by a quality professional trader, these short term leases can create direct competition with existing businesses. Hawkin's Bazaar has successfully traded in Truro for the last few years, but my concern is how it cuts across other businesses like the Toy Master concession in Mallets". It will not be long before we see major brands targeting spaces like Lemon Quay in Truro to set up highly creative, interactive temporary stores designed to take advantage of seasonal shoppers or tourists to the county.

For a small business, the idea of setting up a temporary store can be very attractive. There is no long term commitment and it is a way to test the water in a certain town or city. However, as Rob Redgrave points out, once all the costs are added up it may not make commercial sense. "It's not as simple as it sounds. The legal process for a one month letting is virtually as complicated as a 10-year term. There will be an agency fee, a legal fee and VAT, all adding up to thousands of pounds. Whilst you may think it will cost as little as £1,000, the actual cost could be as high as £5000, rendering it unviable for the tenant".

For the latest information and advice on temporary Leases, whether you are a landlord or a tenant, see Rob's tips or contact Rob direct on 01872 247013

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