Customer Service

Why pop-ups, 5G are the new romance of retail

Gavin Bradley, senior creative director for customer experience at Harbor Retail, explains how the arrival of COVID-19 has turned the humble pop-up shop into a beacon of the flexible future as retailers search for newer, more innovative ways to reach customers.

Photo by istock.com

June 15, 2021 by Gavin Bradley — Snr. Creative Director - CX, Harbor Retail

Even before 2020, pop-up stores were well on their way to becoming a major fixture of the retail landscape. But the arrival of COVID-19 has certainly turned the humble pop-up shop into a beacon of the flexible future as retailers search for newer, more innovative ways to reach customers.

As pop-up shops have gained their place in retail, another significant trend is taking off as well: the emergence of 5G. A recent report predicts that more than 60% of the world's population will be covered by 5G in just five years. And as the network expands, it's likely to have an impact far beyond telecom — including in retail. Now that more people than ever use their phones to shop, 5G should be truly transformational for the sector.

Bring together these two emerging trends in an age of innovation in retail, and you'll find the power to transform the way people shop.

The emerging opportunity of pop-up shops

The current crisis has hit retailers hard as pandemic-related concerns limit in-person shopping. In fact, as retailers and other businesses close up shop and vacate spaces, nearly 2 billion square feet of space could be left open throughout the country.

Of course, many retailers also operate online, which is an excellent strategy — but not always enough on its own. There will always be products that buyers want to see, test, and experience personally before making the decision to buy. Plus, with an overload of products and brands moving online, a physical experience can put brands ahead of the competition.

Enter pop-up shops. These temporary locations allow for more flexibility, which is vital for brands in times of such economic uncertainty. They offer the ability for brands to adapt strategies quickly and efficiently, going where the audience goes and responding to local interests and high footfall. The potential of certain locations can also be tested easily, so a brand doesn't have to linger in an unprofitable corner for too long.

What's more, pop-ups also invite greater engagement by being newer and more surprising as well as stimulating consumers' fear of missing out. They are ideal for products that demand to be looked at and touched, but they're also great at drawing the browser back to a digital channel.

As more businesses vacate physical locations, retailers also have more space opportunities for pop-ups than ever before. Landlords and mall operators that once sought out long-term commitments are now opening up to the idea of letting retailers take spaces for test runs, giving retailers more opportunity to experiment and scale up and down according to capacity and local restrictions. It's a flexible model that can fill the many vacancies left by COVID-19.

What's 5G got to do with it?

So the benefits of pop-ups and the massive opportunity for retailers are clear. But how does 5G fit into that picture?

The faster, next-generation network means more than just better quality videos. It brings with it an oasis of data. Marketers can quickly and accurately process vast amounts of data through 5G, gleaning high-quality insights about consumers. Brands can use this data to create hyperfocused, hyperpersonalized pop-up experiences. As retailers are investing heavily in technology to reinvent and enhance their store operations during COVID-19, it's clear that experience is everything with today's consumers.

On top of enabling more targeted, personalized experiences, 5G has the potential to transform retail in other ways like gathering data that can help stock shelves more efficiently or connecting to consumers' devices to help them avoid long lines and safety hazards.

Ultimately, the richness of 5G's data offers brands a more connected way of operating. Connect to location data to serve customers better; connect to sensor data to refill stock units and power a more efficient supply chain; connect to persona data to make messages and images more engaging and helpful.

5G and the pop-up shop will be the love story to come out of the current retail crisis: Next-generation network technology will enable brands to take pop-ups where their customers are and transform their offerings to personalized, tailored experiences that can further drive customer loyalty and ROI — a light at the end of a particularly dark tunnel.

Gavin Bradley is senior creative director for customer experience at Harbor Retail