Temporary shops are now becoming a permanent feature of Britain’s High Streets: and there are benefits for landlords too…

In light of the festive season, the German markets have arrived in cities up and down the country but it seems that “pop-ups” are a retail trend that have been gaining momentum in recent times regardless of the season.

The retail market has always been competitive and as shopkeepers continually have to adapt to consumer spending habits it is perhaps no wonder that temporary pop-up shops and stalls have become so popular.

Pop-ups allow retailers to experiment without being tied to long term lease commitments. In particular, seasonal sales can add a much needed boost to a company’s sales and consumers are attracted to the “here today, gone tomorrow” concept.

It’s not just for Christmas either. Many brands roll out kiosks and stalls in the summer to make the most of the sunshine. Think sunglasses, ice-creams and flip-flops.

Pop-ups are also proving to be a valuable concept for landlords as they can help to plug gaps in otherwise empty spaces and they can potentially extend an empty property’s business rates exemption.

An empty commercial property can be exempt from business rates for a continuous period of up to three months. After that, business rates become payable. However, if a pop-up business occupies the property for a period of more than six weeks, a new rates exemption can be claimed by the landlord once the property becomes vacant again and the three month period starts again. Not a bad incentive for landlords with vacant buildings.

Online retail giant Amazon has confirmed its plans to roll out pop-up stores across US shopping malls and it is thought that in the UK almost a third of new businesses launched over the next two years will start life as a pop-up. It remains to be seen whether the pop-up phenomenon will assist with the long term regeneration of the High Street but it seems to be a step in the right direction.

For further information please contact:

Shazan Miah, Associate, Real Estate

T: 0121 234 0261

E: Shazan.Miah@gateleyplc.com  


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This blog is intended only as a synopsis of certain recent developments. If any matter referred to in this blog is sought to be relied upon, further advice should be obtained.