Investments in Pop-up Stores

Alternative Rental Models and Vacancy Risk Reduction

verfasst von: Alessia Breda, Michael Trübestein, Matthias Daniel Aepli

Verlag: Springer Fachmedien Wiesbaden

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

This book focuses on two key challenges: the negative impact on property value and higher vacancy risk for pop-up shops. It suggests alternative rental models based on footfall and customer conversion rates and provides a strategic framework for real estate investors to develop and manage pop-up stores. The empirical study emphasizes the importance of data availability, market fundamentals, and the potential of the operator model for managing pop-up retail spaces.

The retail real estate market in Switzerland comprises about 13.0% of total commercial areas. The growth of e-commerce, accelerated by the COVID-19 pandemic, is causing significant changes in brick-and-mortar retail. Real estate owners are facing higher vacancy rates, shorter rental terms, and lower rental prices. However, e-commerce has limitations that prevent it from fully replacing physical stores. Retailers are now seeking flexible and innovative spaces like pop-up stores.

In Switzerland, pop-up stores are mostly used as marketing tools or to fill vacancies, rather than as a sustainable business model, due to their negative impact on property market value.

This textbook has been recommended and developed for universitary courses in Germany, Austria and Switzerland.

Inhaltsverzeichnis

Frontmatter

1. Introduction

Abstract

According to an estimate by Wüest Partner, the retail market accounts for approximately 35 Mn sqm GFA, corresponding to ca. 13.0% of the total commercial areas in Switzerland (Schläpfer et al., 2020). With the increasing importance of e-commerce sales, the brick-and-mortar retail market is however going through a structural change, whereby the novel Coronavirus has acted as a catalyst of this already ongoing trend. According to the GfK Market Monitor Switzerland, while total retail trade sales volume (B2C) in Switzerland somewhat stagnated between 2010 and 2019, the online retail trade sales volume (including both domestic purchases and imported goods from foreign companies) increased from CHF 5.1 Bn in 2010 to CHF 14.0 Bn in 2022, at the expense of traditional brick-and-mortar stores.