Part 3: Practices and Strategies for Pop-Up Retailing – Primary Activities
Chapter 8: Design, Layout and Display
Chapter Overview
Experts agree that a delightful and surprising shopping experience is a distinctive characteristic of pop-up shops. Pop-up retail, as an innovative marketing strategy, is considered a “typical expression of the experience economy”1. Moreover, the ephemeral pop-up shop is also a spatial practice on the boundary between stable place and transitory space. Therefore, pop-up shops are viewed as differential space to immerse the shoppers in an interactive environment to co-create meaning to products and experiences.1 Shopping experiences involve customers interacting with tangible and intangible aspects of a shopping environment. This chapter focuses on topics related to tangible factors, such as store layout and display, but also covers intangible elements, such as characteristics of employees and other customers in a shopping environment.
Learning Objectives
Upon completion of the chapter, readers will be able to:
- Describe the key differences in retail designs between pop-up and traditional bricks-and-mortar stores.
- Categorize multi-sensory retail experiences and the strategies behind them.
- Compare design strategies for different pop-up formats and functions.
Setting the Context
VIDEO
The following short video introduces two female friends at a coffee shop who have just returned from visiting a Sunday pop-up market with vendors that promote a healthy lifestyle. They reflect on their experience, the atmosphere of the market and wonder if there will be follow-up communications or continued customer engagement initiatives from any of the vendors beyond the one-time pop-up event.
1. Retail Design: Pop-Up vs. Bricks-and-Mortar
1.1 Shoppers’ Perceptions
Research shows that shoppers’ perceptions of pop-up shops are different from their perceptions of traditional bricks-and-mortar stores. Ibrahim & Chua (2010) investigated shoppers’ perceptions of permanent and temporary retail space (in-line store vs. retail carts) in shopping centres in Singapore and found that customers view in-line stores and retail carts as sharing three common image dimensions: atmosphere, variety of product and service quality. Customers also perceive in-line stores as offering value. In addition, shoppers rated overall retail space attributes and factors higher on in-line stores than retail carts, which may suggest that shoppers consider in-line stores to be superior to retail carts. Specifically, the in-line store is regarded highly for its attributes of means of payment, general lighting and general accessibility. In contrast, the retail cart ranked higher on product type and service quality of staff.2
Although the findings reported are limited to the shopping mall context and focus on only one form of pop-up shop, they do, to certain degree, provide empirical support for the notion that shoppers’ perceptions differ between pop-up shops and their bricks-and-mortar counterparts. Against this background, how do retailers best approach their pop-up shop designs to address the challenges and maximize the potential of this unique retail format?
1.2 Store Atmospherics and Their Design Implications
1.2.1 Store Atmospherics Defined
The effects of store atmospherics on shopping behaviour have been explored since the 1960s.3 Kotler (1973) was the first to use and define the term “atmospherics“. He argues that consciously controlled and designed consumption space can influence the emotional state of the customers, which increase their likelihood of making purchases.4 The set of controllable characteristics of environmental cues are “atmospherics”.
More recently, researchers have contextualized atmospheric cues such as music, lighting, colour and crowding in retail settings, and investigated how these various atmospheric variables contribute to shopping outcomes such as approach/avoidance, affective response, merchandise/retailer evaluations, shopping satisfaction,and intention to purchase.15 Based on a review of empirical studies of atmospheric effects on shopping behaviour, Turley & Milliman (2000) created a comprehensive table that systematically categorizes the variables into five groups: external variables, general interior variables, layout and design variables, point of purchase (POP) and decoration variables and human variables. Please refer to the table below for more details.
Table 8.1 Store Atmospherics Variables
| External Variables | General Interior Variables |
Layout and Design Variables |
POP and Decoration Variables |
Human Variables |
| 1) Exterior signage | 1) Flooring & carpeting | 1) Space design & allocation | 1) Point of purchase displays | 1) Employee characteristics |
| 2) Entrances | 2) Colour scheme | 2) Placement of merchandise | 2) Signs & cards | 2) Employee uniforms |
| 3) Exterior display windows | 3) Lighting | 3) Grouping of merchandise | 3) Wall decorations | 3) Crowding |
| 4) Height of building | 4) Music | 4) Work station placement | 4) Degrees & certificates | 4) Customer characteristics |
| 5) Size of building | 5) Scents | 5) Placement of equipment | 5) Pictures | 5) Privacy |
| 6) Colour of building | 6) Width of aisles | 6) Placement of cash registers | 6) Artwork | |
| 7) Surrounding stores | 7) Wall composition | 7) Waiting areas | 7) Product displays | |
| 8) Lawns & gardens | 8) Paint & wallpaper | 8) Waiting rooms | 8) Usage instructions | |
| 9) Address & location | 9) Ceiling composition | 9) Department locations | 9) Price displays | |
| 10) Architectural style | 10) Merchandise | 10) Traffic flow | 10) Technology | |
| 11) Surrounding area | 11) Temperature | 11) Racks & cases | ||
| 12) Parking availability | 12) Cleanliness | 12) Waiting queues | ||
| 13) Congestion & traffic | 13) Furniture | |||
| 14) Exterior walls | 14) Dead areas |
Source: Adapted from Turley and Milliman (2000)
Among the five groups of variables, external variables are those mostly determined when a store location is selected and are most challenging to change after the store opens. However, there are still aspects that are within the control of a retailer, but oftentimes overlooked. For example, exterior signage, entrances and exterior display windows are all important elements that can make positive first impressions on shoppers and entice them to enter the store. These variables are integral to a retailer’s brand image and should reflect a retailer’s overall business strategy.
General interior variables are within the control of a retailer, but they are unlikely to be changed regularly unless a remodeling project is done. The lifespan of a remodel is driven by market competition, but generally speaking, many retailers have programs which call for a minor renovation every five years and a full remodel every ten years.6 Among the general interior variables, music, scents, temperature and cleanliness should be carefully controlled and monitored on a regular basis. Retailers have full control over layout and design variables and point-of-purchase (POP) and decoration variables, all of which directly contribute to customers’ shopping experiences. Human variables should be included in retailers’ operation strategies.
1.2.2 Store Atmospherics: Pop-Ups vs. Bricks-and-Mortar
Store atmospherics involve a series of sensory stimuli ranging from tactile, gustatory, olfactory, visual, as well as social factors.5 Due to their temporal nature, pop-up shops need to prioritize what store atmospheric factors are most important due to budget, time, location, space, target audience and objectives. The following is a summary of pop-up store atmospheric variables.
Table 8.2 Pop-Up Shop Atmospheric Variables
| External Variables |
General Interior Variables |
Layout and Design Variables |
POP and Decoration Variables |
Human Variables |
| 1) Exterior signage | 1) Colour scheme | 1) Space design & allocation | 1) Point of purchase displays | 1) Employee characteristics |
| 2) Entrances | 2) Lighting | 2) Placement of merchandise | 2) Product displays | 2) Employee uniforms |
| 3) Exterior display windows | 3) Music | 3) Grouping of merchandise | 3) Price displays | 3) Crowding |
| 4) Surrounding stores | 4) Merchandise | 4) Placement of cash registers | 4) Technology | 4) Customer characteristics |
| 5) Address & location | 5) Temperature | 5) Traffic flow | 6) Graphics | 5) Privacy |
| 6) Surrounding area | 6) Cleanliness | 6) Racks & cases | ||
| 7) Parking availability | 7) Waiting queues | |||
| 8) Congestion & traffic |
As shown in Table 8.2, pop-up store atmospherics include fewer variables than bricks-and-mortar stores. Because pop-ups are temporary in nature, retailers do not plan a generous budget and customers do not expect an extravagant shopping experience. It’s the novelty, innovation and the spur-of-the-moment atmosphere that pop-up shoppers enjoy most. However, careful planning and attention to detail in operation are still critical to ensure a pop-up success as a pop-up store is oftentimes an omni-channel extension of a retailer and it’s a golden opportunity to expand the brand’s reach to existing and new customers.
Given that pop-up retailers often strive to find an existing space that’s most suitable for their target markets and budget, they usually have a clear vision for how to execute aspects related to general interior, layout and design, and POP and decoration, while external variables and human variables are sometimes overlooked. External variables and human variables not only play a substantial role in contributing to the pop-up experience, but also affect other aspects of store atmosphere. For example, creative licences are very different if a pop-up shop is in a shopping mall versus in a streetfront location, which affects multi-sensory aspects of marketing strategy such as signage, colour scheme and music. If temporary employees are hired for a pop-up operation, proper training should be in place to ensure brand knowledge and consistency in brand experience.
2. How Design Choice Impacts Shopper Experience
Shoppers’ in-store experiences are multi-faceted, including not only rational aspects, but also sensory and emotional elements.7 Through the in-store shopping journey, a customer encounters many touch points which involve “a substantial level of interactions among shoppers, salespeople, and the store’s atmosphere”.7 Researchers8 suggest that in-store shopping behaviour is best explained by the environmental psychology paradigm9,10 and by the Servicecapes11.
Environmental psychology originally rests on the emotion-cognition theory which in turn, leads to two contrasting forms of behaviour, approach and avoidance.9,12 Approach is a desire to stay, explore and affiliate, whereas avoidance is the opposite. For example, when a shopper approaches a store, he or she first encounters the external elements, such as storefront and surroundings. Upon entering the store, the shopper will interact with the store environment, such as decor, lighting, merchandise arrangement, fixtures, salespeople and other shoppers. These sensory aspects may stimulate his/her emotional reaction, such as excitement or pleasure. He or she may also derive rational assessment of the store which leads to his/her intention to stay and shop or leave the store.
An alternate theory posits that cognition elicits emotions.13 In this case, a shopper forms perceptions of the store through internal assessments, which results in emotional responses, such as joy or disappointment.
It is worth noting that external and internal cues must be evaluated in terms of one’s own experience and goals, including expectations for different types of stores.
2.1 Store Types
Retail management literature has provided a number of ways to categorize store types. In this book, we adopt the typology proposed by Bell and Ternus (2012)14.
- Department store: a very large store carrying a wide and deep merchandise assortment while offering a substantial level of customer services. Department stores are usually organized into many departments, each devoted to a specific product category15 (e.g., Hudson’s Bay Company).
- Specialty store: a store that specializes in one or a limited number of merchandise categories (e.g., Ann Taylor). Specialty stores cater to a target market segment and usually have a more exclusive store image.14
- Boutique: a small specialty shop carrying a selective merchandise assortment and catering to a narrowly defined clientele (e.g., the shops on Queen Street West in Toronto).
- Discount store: a large general merchandise retailer carrying a wide merchandise assortment. They usually feature limited customer services and low prices15 (e.g., Walmart).
- Dollar store: dollar stores vary in size but all merchandise fit into a specific price range, usually from one to twenty dollars per item14 (e.g., Dollarama).
- Hypermarket: hypermarkets combine a discount store and a superstore grocer in a very large warehouse-like building15 (e.g., Walmart Supercentre, Real Canadian Super Store).
- Outlet store: a standalone store or a small store located in an outlet mall, selling brand name merchandise at a discounted price. Outlet stores may sell irregulars or overstock and off-season merchandise14, but in recent years, it’s become common practice for retailers to develop a special product assortment that carries the brand name labels at lower price points (e.g., SAKS OFF 5th, Nordstrom Rack).
- Warehouse store: a discount retailer selling merchandise in large quantity packages and reduced unit price in a no-frill store environment. They reduce cost by cutting down service level and offering selective merchandise assortment15 (e.g., Costco, Sam’s Club).
- Thrift store: often operated by non-profit organizations, thrift stores sell a variety of merchandise from fashion apparel and furniture to home accessories and books donated by private citizens and businesses14 (e.g., Salvation Army).
- Pop-up stores: a temporary location designed to engage customers directly for the purpose of generating brand awareness, selling seasonal goods, or testing new products and markets or responding to local needs.
2.2 Retail Design and Store Type
Research shows that customers shop in different types of stores with varying expectations for their shopping experiences. Based on empirical findings, Yoon (2013) reported that department store shoppers preferred affective experiences the most, whereas discount store and online shoppers preferred rational experiences. The author reasoned that department stores tend to draw customers with lifestyle products and pleasant store atmospherics, therefore, customers expect to derive a hedonic shopping experience, which involves pure enjoyment, excitement, captivation, escapism, and spontaneity beyond the purchase of product itself.16
In contrast, customers shopping in discount stores and online usually are mostly value seekers who focus on price or functionality of products. Therefore, they expect utilitarian value when they shop. The customers may evaluate their shopping experience exclusively on the tangible attributes of goods and services acquired from their shopping trips17, as well as on whether a purchase is made in a deliberate and efficient manner16.
Store designs should aim to satisfy the types of shopping experience customers are looking for. Permanent stores, department stores, specialty stores and boutiques should strive to reflect more on customers’ need for sensory and experiential shopping attributes, while discount stores, dollar stores, hypermarkets, outlet stores, warehouse stores and thrift stores need to highlight the value proposition that customers are seeking.
For pop-up shops, one of the most important criteria for store design is consistency. A pop-up shop should be consistent in store brand image with its other channels of operation: bricks-and-mortar, online or mobile commerce. The designs of pop-up shops should also align with the objective(s) of the pop-up retail operation, in consideration of factors such as length of operation, location, target market, existing space and budget.
3. Developing Effective Multi-Sensory Pop-Up Design Strategies
Central to retail design is customer experience. Experts project that due to many changes in the retail landscape, physical retail space will be different as a result.5 Along with technology-enabled shopping solutions (e.g., smart mirrors), traditional physical store formats need to become flexible and diversified (e.g., pop-up shops). As discussed in Chapter 2, pop-up retail can serve as a marketing and communication tool (to promote brand image and affect word-of-mouth), a market entry tool (to test new products, attract new target market and set up omni-channel retail operations) and can be used as an outlet for inventory liquidation. Based on their intended function and format, pop-up shop design priorities can vary.
3.1 Pop-Up Shops as a Marketing and Communication Tool
As a marketing and communication tool, pop-up shops place primary priority on communication and experiential objectives, while selling is largely ignored. In the context of an experiential economy, an important element of a pop-up shop is the experience itself where the store setting contributes to telling a brand story through design, layout and display strategy via multi-sensory elements.
- External Variables: branded exterior signage should be strategically placed to draw and direct customers and entrances and exterior display windows should use brand brand templates and wordmarks.
- General Interior Variables: colour scheme, lighting, music, temperature and cleanliness must be carefully executed to reflect the brand experience.
- Layout and Design Variables: space design and allocation as well as traffic flow are key aspects to implement to ensure customer engagement and avoid congestion in certain areas.
- POP and Decoration Variables: attention should focus on technology and graphics that enhance the communication and experiential objectives.
- Human Variables: employees must be carefully trained to not only provide superior customer service, but also be knowledgeable about the brand. Crowding should be controlled based on the space capacity so that customers get to fully engage in the brand experience.
The table below highlights the important variables for this situation.
Table 8.3 Atmospheric Variables at Play When a Pop-Up is Used as a Marketing Tool
| External Variables |
General Interior Variables |
Layout and Design Variables |
POP and Decoration Variables |
Human Variables |
| 1) Exterior signage | 1) Colour scheme | 1) Space design & allocation | 1) Point of purchase displays | 1) Employee characteristics |
| 2) Entrances | 2) Lighting | 2) Placement of merchandise | 2) Product displays | 2) Employee uniforms |
| 3) Exterior display windows | 3) Music | 3) Grouping of merchandise | 3) Price displays | 3) Crowding |
| 4) Surrounding stores | 4) Merchandise | 4) Placement of cash registers | 4) Technology | 4) Customer characteristics |
| 5) Address & location | 5) Temperature | 5) Traffic flow | 5) Graphics | 5) Privacy |
| 6) Surrounding area | 6) Cleanliness | 6) Racks & cases | ||
| 7) Parking availability | 7) Waiting queues | |||
| 8) Congestion & traffic |
Source: Adapted from Turley and Milliman (2000)
3.2 Pop-Up Shops as a Market Entry Tool
As a market entry tool, pop-up shops place primary priority on testing objectives and selling is a key indicator of market acceptance. In this scenario, design, layout and display strategy should focus on highlighting the new products via multi-sensory store atmospheric elements.
- External Variables: exterior signage, entrances and exterior display windows should provide clear directions and use brand brand templates and wordmarks.
- General Interior Variables: merchandise must be the focal point.
- Layout and Design Variables: space design and allocation and traffic flow should be strategically planned to ensure maximum exposure of the pop-up space; merchandise placement and grouping of merchandise on racks and cases should be implemented so that shoppers can easily see and access them. Cash registers should be placed so that waiting queues do not interfere with customers browsing in the store.
- POP and Decoration Variables: product displays and especially price displays should be strategically planned and implemented.
- Human Variables: employees must be carefully trained to not only provide superior customer service, but also be knowledgeable about the products. Crowding should be controlled to ensure comfortable distance among shoppers for a pleasant shopping experience.
The following table highlights the important variables for this situation.
Table 8.4 Atmospheric Variables at Play When a Pop-Up is Used as a Market Entry Tool
| External Variables |
General Interior Variables |
Layout and Design Variables |
POP and Decoration Variables |
Human Variables |
| 1) Exterior signage | 1) Colour scheme | 1) Space design & allocation | 1) Point of purchase displays | 1) Employee characteristics |
| 2) Entrances | 2) Lighting | 2) Placement of merchandise | 2) Product displays | 2) Employee uniforms |
| 3) Exterior display windows | 3) Music | 3) Grouping of merchandise | 3) Price displays | 3) Crowding |
| 4) Surrounding stores | 4) Merchandise | 4) Placement of cash registers | 4) Technology | 4) Customer characteristics |
| 5) Address & location | 5) Temperature | 5) Traffic flow | 5) Graphics | 5) Privacy |
| 6) Surrounding area | 6) Cleanliness | 6) Racks & cases | ||
| 7) Parking availability | 7) Waiting queues | |||
| 8) Congestion & traffic |
Source: Adapted from Turley and Milliman (2000)
3.3 Pop-Up Shops as an Inventory Liquidation Tool
As an inventory liquidation tool, pop-up shops’ primary priority is selling through. In this scenario, design, layout and display strategy should focus on creating a sense of urgency and emphasize the fun of bargain-hunting through multi-sensory components.
- External Variables: exterior signage and entrance should explicitly highlight the sale with simple sign and poster designs.
- General Interior Variables: music should be fast-paced to enhance the excitement of finding “treasures” and increase the sense of urgency.
- Layout and Design Variables: space design and allocation and traffic flow should be simple and straightforward. Use a race track floor layout with utility tables, capacity racks and cases as fixtures and place the cash register near the exit so the waiting queue is positioned to be away from the customers still shopping.
- POP and Decoration Variables: product displays and especially price displays need to be effectively executed.
- Human Variables: employees usually provide minimal customer service, but must work promptly at re-organizing the merchandise and loss prevention. Employees should wear uniforms so they can be easily identified. Crowding should be controlled based on the space capacity so that customers get to access to the merchandise.
The following table highlights the important variables for this situation.
Table 8.5 Atmospheric Variables at Play When a Pop-Up is Used as an Inventory Liquidation Tool
| External Variables |
General Interior Variables |
Layout and Design Variables |
POP and Decoration Variables |
Human Variables |
| 1) Exterior signage | 1) Colour scheme | 1) Space design & allocation | 1) Point of purchase displays | 1) Employee characteristics |
| 2) Entrances | 2) Lighting | 2) Placement of merchandise | 2) Product displays | 2) Employee uniforms |
| 3) Exterior display windows | 3) Music | 3) Grouping of merchandise | 3) Price displays | 3) Crowding |
| 4) Surrounding stores | 4) Merchandise | 4) Placement of cash registers | 4) Technology | 4) Customer characteristics |
| 5) Address & location | 5) Temperature | 5) Traffic flow | 5) Graphics | 5) Privacy |
| 6) Surrounding area | 6) Cleanliness | 6) Racks & cases | ||
| 7) Parking availability | 7) Waiting queues | |||
| 8) Congestion & traffic |
Source: Adapted from Turley and Milliman (2000)
Key Takeaways
In this chapter, you learned:
- about the key differences in retail designs between pop-up and traditional bricks-and-mortar stores
- how to develop and implement effective strategies to create multi-sensory experiences for pop-up shoppers
- what aspects to consider when comparing design strategies for different pop-up formats and functions
Key Terms:
- Atmospherics
- Store Types (e.g., Department Stores, Specialty, Boutique, etc.)
- Atmospheric Variables:
– External Variables
– General Interior Variables
– Layout and Design Variables
– POP and Decoration Variables
– Human Variables
Mini Case Study
Blue Corp.
Situation:
An international retailer with many brick and mortar locations that sell furniture and home accessories wanted to decrease overhead costs for its new locations. Thus, instead of building new locations within major city limits, they decided to build them in suburban areas that cost less to purchase or rent, operate, and maintain. However, moving store locations outside the city limits would decrease exposure, foot traffic (and associated conversions into sales), and require a longer commute for shoppers.
A solution was required to generate more interest in the new locations and demonstrate the added value of having a store in the suburbs (e.g. larger locations with greater selection, more parking, and free pick-up of online orders).
Solution:
A temporary pop-up shop in the downtown core was planned as a way to improve awareness and garner interest for customers to consider making the trip to suburban stores. While demonstrating the wide selection of items available and benefits such as free parking and pick-ups, Blue Corp. utilized communicational and experiential strategies for their pop-up shop in the downtown core. The pop-up highlighted the benefits of shopping at the suburban locations through the presentation of a highly engaging and memorable experience.
For instance, a customized pinball machine near the entrance helped set the overall mood and tone immediately, while a major focus on food and artwork created a warm and inviting feeling. The artwork was created using items that were for sale at the larger stores, as was the food offered at the pop-up shop. A dance competition was held in another area, with contestants getting 10% off of food purchases at the pop-up. Lastly, there were 50 specifically selected cooking, eating, or entertaining items available for purchase, using radio frequency identification (RFID) technology to tap and select items in an electronic shopping cart. The entire pop-up experience was highly focused on providing a unique experience to visitors.
Expectations were being set as visitors were immersed in welcoming and comforting experiences associated with Blue Corp. that would invariably end with a query about the location of the closest suburban store.
Results:
A positive, inviting experience mixed with the communication of key information about the brand meant that visits to the pop-up shop translated to increased traffic at the suburban locations. Brand and store-location awareness improved among the residents of the city and suburbs as local news organizations ran stories about the pop-up event. The goodwill and interest of people living in the city was won over by focusing on delivering a homogeneous, positive, and informative experience.
Consider the following questions:
- Why would Blue Corp. limit the selection of products rather than selling the maximum number of items possible at its pop-up shop?
- What was the focus of the pop-up and how does that compare with the expectations of their target market?
- Why might the display of art that was made from items for sale at Blue Corp.’s larger stores help with their overall sales plan?
- What are some atmospheric variables that Blue Corp. could have utilized at its pop-up shop to not only garner interest, but also compliment their larger store in the suburbs?
References
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