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Interactive window display case study

12, Jun 2013

The pop-up shop, a modern type of retail, but could we improve on it?

Could we use the pop-up idea, but in an interactive, unmanned way and more importantly can we make it cost effective?

It’s becoming generally accepted that the pop-up store is much more than seasonal vintage dresses and bespoke products, it’s become University Open Days, it’s become recruitment to the armed forces, it’s becoming advertising… but why? What was wrong with the advert in the local paper? Or the billboard? What can this offer that those couldn’t?

Pop-up stores come with huge price tags and huge logistical issues for those running them, from finding a store you can have for a short period of time, to hiring staff who are more than aware they will be jobless again within the month, training those staff who you know are soon to be leaving and dealing with the high demands of the retail environment for a short burst, it’s like placing a magnifying glass over the sun that’s already burning what is a difficult industry to be successful in already.

But what would happen if you could remove some of the logistical issues? What would happen if you could make it run itself?

For this case study no names of papers, buildings, streets or shopping centres will be used but locations are genuine and researched. The case study is for a one month pop-up advertising window, the rental of the property requires no staff and minimal set-up and all costs of utilities (electricity for KioScreen) and National Non-Domestic Rates (Business Rates) are included. All prices correct as of May 2013.

Half Page Newspaper Advert KioScreen Pop-up Store Bus/Shelter Billboard Advertising Campaign
£25,000 (One month) £2,000 (KioScreen and installation)  £18,000 (10 Billboards and Posters, 3 Months)
 £10,500 (Rent and Utilities)  £12,000 (25 Bus Shelters and Posters, 1 Month)
£3,000 (5 Rear of Bus Adverts, 3 Months)
 Total £25,000 Total £12,500 Total £33,000

We have decided to use a genuine empty retail space currently in Liverpool City Centre on Lord Street, the rentable value of the property per year is £70,000-80,000, using that per month the rentable value of the property would be in the region of £6,000-7,000, to this we will add the value of the Business Rates and Utilities as well as a 25% increase in the rental cost accounting for a short lease and you have a price for the property for the month of £10,500.

But, it is not only cheaper than taking the half page ad in the local newspaper or a three month bus and billboard campaign; it is more likely to hit your audience.

The City Centre is a bustling one, with a footfall of 5 million (November 2012) not inclusive of the 2.2 million (November 2012) using the large shopping complex opposite the property. Although it can be assumed a large number of the 2.2 million also visited the same area the 5.3 million visited.

The property is located on the main shopping road of the City Centre on the paths between the two main shopping complexes and the main shopping street and so a large portion of that 5.3 million people would pass the shop at some stage during their visit.

This means a potential of 5 million people would become aware of the interactive display being used in the window of a usually empty shop, creating a well designed catalogue of your services and products and loading it into the KioScreen in the window would allow people to walk up to the KioScreen, view your products, make purchases to their home all from the high street whilst generating interest in your company as one doing something quite unusual in terms of its advertising.

Also, considering the audience of the newspaper, which is high but quite fixed, the same 100,000 or so people would see your advert each day so although overall 3 million readers may see it is more likely to be less than one million individuals for nearly double the cost of the advertising.

And, in the through glass touch screen idea we have another factor, joint ventures with other companies, if 6 different small businesses wanted to try this project they would each be putting less than £2,500 in each for the property, bills, Business Rates and screen and if the venture was to happen again the price of the KioScreen would not be involved as that would be owned outright by the stores and so only the property, bills and Business Rates would be payable for the next campaign.

Other benefits of this venture would be the guarantee of a mix of markets catering to any business, the potential to track what products and services where being viewed most and to be able to update the app with respect to the most popular items.

Also, the lack of staffing of the building and the relatively low cost of running the project, half the price of a month’s worth of half page ads means, if payment and ordering was possible from the shop window, the project could make a measurable profit come the end.

eBay to use interactive shop windows in New York, read full article here.