Retailism #5

Every time I speak about vacant storefronts, someone inevitably suggests pop-up retail. The idea is appealing. Empty storefront? Fill it with a temporary retailer. Need more activity downtown? Launch a pop-up program. Looking to support entrepreneurs? Pop-ups seem like the perfect solution. And sometimes they are.

But after leading a recent workshop on pop-up retail at the Downtown Colorado Inc. conference, I was reminded of something I have learned throughout my career: pop-up retail is often identified as the solution before we fully understand the problem.

One of the biggest challenges facing downtown organizations is that we tend to underestimate the amount of work required before a pop-up program can even begin. When a downtown organization sees vacant storefronts, the natural instinct is to focus on filling them. But vacancy itself is rarely the real problem.

Is the issue a lack of foot traffic? A shortage of retail entrepreneurs? A weak retail mix? Negative perceptions about downtown? Property owners unwilling to lease space? Each of these challenges may require a different solution—or at least a great deal of work before a pop-up can produce the results you are seeking.

Before discussing tenants, leases, or activation strategies, downtown leaders should first develop a clear problem statement. What exactly are you trying to change? What conditions exist today? What outcomes would indicate success? Without answering those questions, a pop-up program can easily become activity for activity’s sake.

The Reality Check Nobody Talks About

Let’s assume you’ve identified the problem and determined that a pop-up program could help. Now comes the less glamorous work. Does your municipal code even allow temporary retail uses? Many communities discover that zoning regulations, occupancy requirements, permitting processes, insurance provisions, or licensing requirements create barriers they never anticipated.

Before recruiting a single retailer, downtown organizations need to understand the regulatory environment in which these businesses will operate. It’s not the most exciting part of the process, but it can determine whether a program succeeds or stalls before it ever launches.

Then Come the Relationships

Successful pop-up programs require multiple groups to move in the same direction: property owners, entrepreneurs, existing downtown businesses, city staff, and the downtown organization. Each group brings different goals, concerns, and expectations.

Property owners worry about liability, lease conflicts, property conditions, revenue and costs as well as the time involved in managing temporary tenants. Small retail entrepreneurs worry about affordability, sales potential, inventory, staffing, and whether the opportunity is worth the effort. Existing downtown businesses may fear competition from pop-up concepts that are not carrying the same rent, taxes, or long-term obligations. City staff may have regulatory, health, and safety concerns. Meanwhile, the downtown organization is often left coordinating everything in between. In many ways, its role becomes part recruiter, part project manager, part negotiator, and part cheerleader. And none of those responsibilities disappear once the pop-up opens.

Not Every Entrepreneur Belongs in Every Storefront

One of the most common mistakes I see in pop-up retail programs is treating every vacant space as a success simply because it is occupied. Occupancy and success are not the same thing.

Mandy downtown organizations spend years working with property owners to help create a balanced mix of businesses that serve residents, attract visitors, and complement one another. Yet when vacancies rise, there can be tremendous pressure to fill space quickly. That is when standards sometimes disappear.

The reality is that not every entrepreneur is the right fit for every location. A successful pop-up program requires the same strategic thinking as traditional retail recruitment. Downtown leaders should ask – Does this business complement the existing retail mix? Will it strengthen nearby businesses or compete directly with them? Does it fill a gap in the market? Will it generate additional foot traffic? Does it align with the vision and identity of the district?

The goal is not simply to place a business in a vacant storefront. Retail districts function as ecosystems. Every new business influences the performance of the businesses around it. A thoughtfully placed retailer can strengthen an entire block, while a poorly matched concept may struggle despite everyone’s best intentions.

Pop-up programs should be viewed as an extension of a community’s retail strategy, not a substitute for it. Sometimes the best decision is not filling a space immediately. Sometimes it is waiting for a concept that better supports the long-term vision for the district. That can be difficult when vacancies are visible and stakeholders want quick action. But downtown leaders are not simply managing storefronts. They are helping to curate an environment where businesses can succeed together.

Pop-Ups Require Infrastructure

One of the biggest misconceptions about pop-up retail is that it is informal. The most successful programs are anything but. They require an inventory of available spaces, a current understanding of the space configuration and certificate of occupancy requirements, relationships with willing property owners, standard lease agreements, insurance requirements, program guidelines, recruitment strategies, marketing plans, and performance measures. In other words, they require infrastructure. The irony is that temporary retail often requires permanent systems.

The Question That Matters Most

When I ask workshop participants why they want a pop-up program, the answers usually involve activation, foot traffic, or filling vacant storefronts. Those are valid goals. But there is a more important question: What happens after the pop-up? If a temporary retailer succeeds, is there a pathway to a permanent location? If the concept resonates with customers, can the entrepreneur grow? If the storefront becomes active, does it improve leasing opportunities for the property owner? The strongest pop-up programs are not designed around temporary occupancy. They are designed around long-term outcomes.

Pop-Ups Are a Tool, Not a Strategy

I like pop-up retail. I have seen it create energy, test concepts, support entrepreneurs, and transform perceptions. But launching a successful program requires far more than finding someone willing to occupy a vacant storefront for a few weeks. It requires problem-solving, relationship-building, planning, coordination, and ongoing management.

That is why I encourage downtown leaders to think differently about pop-up retail. Do not start by asking, “How do we create a pop-up program?” Start by asking, “What problem are we trying to solve?” Once you answer that question, you may discover that a pop-up is the right tool. Or you may discover there is a better one. Either way, you will be building a strategy instead of simply filling a space.