Sophelle Focus Report | Boundaryless Commerce: Pop-up Retail June 2017

FOCUS REPORT
June 2017
Boundaryless Commerce: POP-UP RETAIL
www.sophelle.com
info@sophelle.com
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Framingham, MA 01701
508.875.5700

In 2013, Mindy Grossman, CEO of HSNi and retail visionary,
coined the term “boundaryless retail”. In her opening remarks at
Retail’s Big Show in January 2016, she talked about “distributed
commerce” where the customer herself is the point of sale.
Boundaryless Commerce encompasses all aspects of a retailer’s
business, and achieving it frees retailers from the limitations of
traditional retail infrastructure and business processes while
enabling them to meet the needs of their customers in new and
innovative ways. It is such a large and important concept that
we will be tackling it in a series of reports.
Pop-up Retail is the first in the series. Pop-up stores have
evolved to become an important part of retailer and brand
strategies. In this report we will cover why retailers should give
pop-up stores serious consideration, what customers expect,
and a range of key success factors from merchandising to
technology when developing a pop-up strategy.
I hope that you find the report helpful.
AWordFromSophelle
© Sophelle. All rights reserved. June 2017
Douglas
Weich
2

3
Sophelle Focus Reports are intended to provide readers with
information and insight into specific areas of retail technology
and operations. The information attributed to Sophelle in this
report is based on the combined experience of its associates
working with hundreds of leading retailers on strategy and
implementation projects.
Focus Reports are not intended to provide all of the
information needed for retailers to make a decision on
selecting a specific solution. We recommend that each retailer
conduct a thorough solution selection project, identifying its
particular requirements, and reviewing each vendor’s solution
in detail. Sophelle has conducted hundreds of selection
projects and we invite you to find out more by visiting our
website at www.sophelle.com.
Readers are encouraged to contact Sophelle and all of the
participating vendors. Contact information is provided at the
end of the report.
Sophelle Focus Reports are published regularly. For the most
recent versions, please visit www.Sophelle.com/Focus
About Sophelle
Focus Reports

4
05 Introduction
06 Why a Pop-up Store?
07
13
Critical Success
Factor #1: Customers
08 Critical Success
Factor #2: Merchandise &
Merchandising
09 Critical Success
Factor #3: Format and Location
Assessing Your Success
14 Pop-up Retail Considerations
10 Critical Success
Factor #4: Marketing
11 Critical Success
Factor #5: Test, Learn, Iterate
12 Critical Success
Factor #6: Technology
32 Get In Touch
15 Vendor Offerings
30 Vendor Directory
31 About the Author

Pop-up Retail is not a new concept; retailers are just finding
new ways to leverage it.

Pop-up retail has traditionally been considered in the context of
seasonality - in particular, Halloween and Christmas-themed
shops occupying empty mall storefronts or shuttered stand-alone
retail locations. However, it is now playing an increasingly
important role in retailers’ and brands’ overall strategies.
Pop-up retail offers flexibility for retailers to find new ways to
bring excitement and engagement to brands. And much like the
retail landscape itself, pop-up opportunities are continually
evolving. With a myriad of choices with respect to format,
location, and duration, combined with a much lower cost of entry
than permanent retail locations, retailers have an opportunity to
test concepts which would have been cost and resource
prohibitive in a traditional retail infrastructure.
INTRODUCTION
Key Trend:
Online Only Brands Venturing Into Physical Retail
Online only companies once vowed they would never
go into physical retail; however that tide has turned.
Brands like Warby Parker, Rent the Runway,
Birchbox, Bonobos, IndoChino, ModCloth, Google,
Amazon, and most recently Zappos with their
“Friends with Benefits Road Show” have all ventured
into physical retail with pop-up shop concepts.
Sophelle Tip
With the right planning, strategy, and execution there
is never a bad time to test pop-up concepts as
pop-up retail has become a year-round tactic.
Key Insight
Brick and mortar retail isn’t going away anytime
soon. In 2015, 92.7% of retail sales were made
offline; in 2016 91.9% were. While digital commerce
sales are increasing, physical stores are still an
important part of any retail strategy.
- Census.gov, 2017
© Sophelle. All rights reserved. June 2017 5

Pop-up stores can solve for different retailer strategic
initiatives and challenges.

Pop-up stores are something that nearly all retailers and digital
commerce companies can do, regardless of their size. As a
cost-effective way to enter or test physical retail, it’s become a
more common way to compete in gaining the attention and wallet
share of customers, as well as enhancing customer engagement
and loyalty. The underlying reasons for initiating a pop-up strategy
will vary from retailer to retailer.
Common reasons for leveraging pop-up stores include:
Enter into physical retail for the first time
Test new locations for an existing physical retail footprint
Test new concepts, products, or line extensions
Liquidate inventory
Develop direct customer relationships
Sell seasonal merchandise
Legacy retail store infrastructure can be limiting. A pop-up store
will allow more flexibility to test concepts, merchandise, and
experiences with controlled financial exposure.
Why a pop-up store?
Key Trend:
Limitless Formats
If you can dream it up, it can very likely become a
pop-up shop reality. Encourage your team to open
the flood gates of creativity and innovation to come
up with something compelling and on-brand.
Sophelle Tip
In reviewing your company’s strategic initiatives and
challenges, consider how a pop-up store may be able
to help solve for them through cost-effective testing
of new ideas.
Key Insight
Pop-up retail provides marketing benefits well
beyond the duration of the store itself. Marketing
activities leading up to and during the opening builds
awareness for your brand as well as your customer
database with highly qualified people who can be
marketed to over time.
- Sophelle

Critical Success Factor #1: Customers
You have a limited time to make an impact on shoppers.
Understanding customer motivations is an important part of any
retail or brand strategy, and even more so for a limited time
pop-up store strategy. So what drives shoppers to pop-up stores?
One of the biggest drivers is FOMO – the fear of missing out. This
fear is compounded by a sense of urgency (the limited time the
pop-up will be operational) and exclusivity (whether it’s an
experience, product, or both, they can’t get it anywhere else).
Other key customer motivators include:
Unique experiences
Brand affinity and immersion
Sales and promotions
Figure out what motivates your customers the most and use that
to your advantage in crafting your pop-up strategy.
Key Trend:
In-store Technology
In-store technology providers continue to innovate
and push the boundaries on the in-store customer
experience. Tablet-based POS, beacons, and smart
mirrors are all great examples of technologies that
are well suited for testing in a pop-up environment.
Sophelle Tip
Give them something to talk about. Customers
visiting your pop-up store are expecting a unique and
memorable experience. Use it as an opportunity to
test new ideas, merchandise, sales approaches, and
technology which motivates shoppers to share their
experiences on social media.
Key Insight
When Sole Society partnered with The Lionesque
Group to launch their pop-up store, driving sales
wasn’t their only goal. Despite this, more than 95% of
people who visited the location “left with one or
many shopping bags,” Andrea Wasserman, CEO of
Sole Society said. “The average items per order and
bag size exceeded our expectations.”
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Critical Success Factor #2:
Merchandise & Merchandising
Define your merchandising strategy to maximize
engagement, space, and sell-through.

It’s not only what you sell, but how you sell it. A pop-up
merchandising strategy can be defined by a number of factors:
Introduction of a new brand
Introduction of a new concept within an existing brand
Liquidation of excess inventory
Seasonal product
Creating a compelling experience
Pop-up stores present the challenge of limited space, so
creativity when it comes to the fixtures is key. It’s important to
generate engagement and excitement, and so be sure to make
your merchandise accessible and interactive.
Key Trend:
Consumer Spending Shift from
“Things” to “Experiences”
Retailers can take advantage of this shift in spending
by creating memorable, immersive, and
brand-enhancing experiences in a pop-up store
environment.
Sophelle Tip
You don’t need to actually sell anything on-site in
order to have a successful pop-up store. Made by
Google in New York City was entirely experiential
where visitors lined up to feel, touch, play with, and
learn about Google’s phones and gadgets setting the
stage for future sales. As an added “thank you” for
waiting in line, visitors were given bags filled with
Google swag.
Key Insight
61% of consumers go to pop-up stores to find
seasonal product and 39% go to discover unique
services or products.
- PopUp Republic
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Key Trend:
Retail Partnerships
Retailers and brands are realizing the value of
partnering for a win-win situation. Benefits include
shared expertise and costs, as well as delivering a
richer customer experience. Examples include the
Kith and Nike pop-up in New York City, and
brand-owned shops within Bloomingdale’s stores.
Sophelle Tip
Consider partnering with a synergistic company that
targets the same customers as you do. This could
provide opportunities to experiment with pop-up
retail in ways you may not be able to on your own.
Key Insight
Opening a pop-up shop is approximately 80% less
expensive than opening a traditional retail location.
- Storefront
Pop-up store locations and formats have evolved
beyond vacant real estate in malls and span a wide
range of options. Delivering on your desired
customer experience is dependent on determining
what you want that experience to be, and where the
best place to deliver it is. Pop-up stores offer the
unique ability to go where your customers are.
Properly executed, pop-ups can be excellent tests
for new geographies, adjacencies, sizes, floor plans,
and fixtures.
Wherever you decide to set up shop, be sure there
will be enough organic foot traffic in addition to that
driven by your marketing efforts to support your
sales and customer acquisition goals, and that it
makes sense for the products you are looking to sell.
Format and Location
The “what” and the “where” are among the most
important questions to answer.
Formats
Traditional retail stores
Kiosks
Temporary structures, such as tents
Mobile, such as converted trailers
Re-purposed structures, such as
shipping containers
Locations
Inter-lease store locations
Dedicated pop-up locations
Malls
Within other stores
Arts, music, and sports events
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Driving traffic to the event
Facebook events and sponsored posts
Email
Mobile marketing
Public relations outreach and
editorial mentions
Influencer partnerships
Event hashtag
Viral video
Snapchat Ads
Retention Marketing
Email
Social media
Mobile marketing
Key Trend:
Key Trend: Event-driven Social Media
Leverage every possible social channel to drive
excitement and engagement before, during, and after
the event. Brand consistency with respect to message
and image across channels will keep the experience
connected for users.
Sophelle Tip
Leverage your advocates and influencers by making it
easy to engage with and share photos, videos, and
posts, and enable users to upload photos and videos of
their own. Be responsive to questions that users post,
and capture this information for learning and to drive
better experiences moving forward.
Key Insight
The Lionesque Group has found that the average
pop-up they work with:
Whether your pop-up store will be operational for
days, weeks, or months, you need a steady stream of
shoppers and lots of viral engagement to maximize
your sales opportunity in the limited time you have.
Traditional digital channels such as email, SEM, and
SEO, are not nearly enough. Retailers need to
incorporate modern marketing tactics to reach the
right audiences at the right time.
Marketing
In order to maximize your pop-up opportunity,
you need a comprehensive marketing strategy.
Maximizing Impact During The Event
Facebook Live and Snapchat Stories
Instagram influencers
Event hashtag
Experiences a 35% increase in sales from doors open
to 6 months after doors close
50% see an average increase of 30% in social media
engagement over the lifespan of their pop-up shop

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Key Trend:
Smaller Retail Formats
Retailers from all sectors are testing smaller store
formats. Big box stores like IKEA, Walmart, and The
Container Store are looking to test pop-up concepts
to maximize profit per square foot and gain flexibility
in meeting customers’ changing demands
Sophelle Tip
The full benefits of testing a pop-up strategy are not
always immediate. Retailers need to take into
account longer-term aspects such as new customer
acquisition, repeat purchase rate, and customer
lifetime value when considering overall success
metrics against goals.
Key Insight
Music is an important part of the retail experience so
don’t make it an afterthought. Many studies have
been done testing tempo, volume, pitch, and genre
and how it affects mood, time spent in the store, and
dollars spent. It’s worth testing to see what works
best for your customers and your bottom line.
Just like all new business concepts, it’s unlikely you’ll get it
right the first time, so set yourself up to do better the
second time.
Pop-up stores are a great way to learn about your customers,
uncover new business opportunities, and find out what your
company is capable of achieving when you push the boundaries of
your business comfort zone.
When you embark on a pop-up strategy, be sure to have a plan to
set goals, measure, record, and analyze the valuable insights that
will present at all stages from planning, to marketing, execution,
and post-mortem. Use these insights to learn what worked and
what didn’t and apply those learnings to testing new approaches
the next time. As you repeat the cycle of test, learn, and iterate,
you should see improvements in KPIs such as ROI, sell-through,
customer engagement, traffic, and average order value.
Test, Learn, Iterate

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Critical Success factor #6:
Technology
Key Trend:
Limitless Formats
A potential advantage of pop-up stores is their ability to live
outside of the bureaucratic corporate infrastructure.
Keeping pop-up store technology applications agile and
flexible will enable efficient and simplified innovation and
course correction.
Sophelle Tip
Test new technologies in a pop-up setting to collect valuable
insight in finding new ways to drive higher engagement and
sales with minimal financial exposure.
Key Insight
You don't need to splurge on an expensive POS technology
to give your customers a robust shopping experience. You
can start testing the waters in pop-up retail with as little as
an iPad or mobile phone.
- Shopify
Technology infrastructure for a pop-up is less complex than
traditional retail stores, but no less important. You still need
systems and processes to support your orders, customers,
and inventory.
POS – Mobile POS solutions, such as iPhone and iPad-based
applications, work well in a pop-up setting having minimal
hardware, network, and fixture requirements.
Planning & Allocation – Flexibility is key in assigning inventory to
pop-up stores. Without a historical track record on which to base
decisions, and with a much shorter time period in which to react,
there is far less margin for error.
Customer Relationship Management (CRM) – Collecting
managing, and analyzing customer data is even more important
to build a database for future marketing efforts, to provide
clienteling services, and to properly analyze the program’s
success.
Product Information Management (PIM) – Pop-ups may be
staffed with less-seasoned associates. Making comprehensive
product data available in the pop-up environment helps ensure
that customers have access to information supporting purchase
decisions.

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Most importantly, how can
all of the results and
learnings be applied to
improve the chances of
future pop-up success?
How well did you meet goals
for driving awareness and
foot traffic?
Did social campaigns generate
high levels of engagement and
social sharing?
Did you meet expectations for
customer acquisition so you can
keep the momentum going?
Was the customer experience
in the space engaging and
result in social media activity?
Did all of the technology work as
expected and provide value to
customers and sales associates?
How well did your staff perform,
and did you provide optimal
levels of customer support?
Assessing Your Success
Pop-up retail success is an iterative process. Retailers need to set clear goals and expectations
for key performance indicators such as social engagement, foot traffic, conversion, sales,
customer acquisition, operations, and customer experience. Tracking to goals and expectations
should be an ongoing activity and used to refine and improve efforts in real time. Even if your
first pop-up store is a relative success, there are always lessons to be learned and
improvements that can be made.
“You can’t manage what you don’t measure.” ~ Peter Drucker

If pop-up retail is new to you, you’re going to need help.
Successfully developing and executing a pop-up strategy requires knowledgeable
solution providers who can help you make the right decisions, minimize risk, and
bring visibility to critical performance metrics. We have invited some of the best in
the industry to bring together thought leadership, best practices, and key solutions
that need to be considered in the Vendor Offerings section of this report. These
include:
Real estate planning and procurement – how and where to get the best real
estate for your pop-up shop
Space ideation, planning, and execution – ensuring the experience reflects the
brand and goals
Technology – what are the best software and hardware solutions based on your
needs and goals
Product information management – to maintain customer experience
consistency across channels
Operational efficiency – driven through real-time data collected across all
store operations
Shopper experience optimization – leverage analytics to understand and
improve the shopper journey and increase engagement
Expansion strategy – determine the best approach to grow your brand based on
pop-up results
And of course, we can help. Contact Sophelle today for a free 30-minute
consultation on how to plan and launch a pop-up strategy.
Pop-up Retail Considerations
14© Sophelle. All rights reserved. June 2017

Sophelle asked several of the leading software
vendors and service providers with solutions in the
retail space to present their views on best practices,
trends, and their particular approaches to support
pop-up retail. The information provided under each
vendor represents their respective view. Sophelle
has not verified their claims nor endorses their
solutions. The information is presented to allow
readers to learn and make their own decisions.
�VENDOR OFFERINGS
15

BOUNDARYLESS COMMERCE MEANS:
Providing a stellar customer experience across
all channels and devices along the buying journey.
Removing frictions that frustrate and disappoint
your customers.
Addressing each and every touchpoint and
removing anything that might impede great
customer experience.
THE HEART OF CUSTOMER EXPERIENCE
Product information is the heart of your eCommerce
initiatives.
Buyers interact with your brand through the tangible
experiences they have with your products.
When you ensure that your product information is
accurate and consistent across all sales
channels—including Pop-Up Shops—you preserve and
enforce your brand identity.
Compelling product stories attract shoppers—
enhancing their perception of your brand.
Your Pop-Up Shop is a unique opportunity to connect
with new and existing customers. How do you ensure
that their experience in your Pop-Up Shop is
reproduced across all Your other channels-achieving
that ideal of Boundaryless Commerce?
INRIVER PIM ENABLES
BOUNDARYLESS COMMERCE
PIM is the key to providing relevant and consistent
product information and enhancing the customer
experience along key touchpoints.
MEET YOUR CUSTOMERS WHERE THEY ARE
A Pop-Up Shop is a unique opportunity to connect with
new and existing customers.
inRiver PIM helps your products tell their own
stories—consistently, accurately, and in a compelling
way—in all channels from one source
By deploying PIM you can ensure the experience in
your Pop-Up Shop is the same as in all your other
channels.
Meet your customers where they are along the
buying journey, at the right time, with the rich
product information they are seeking.
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ENRICH
Add specs, videos,
imagery, and other
material to enrich the
product and its unique
message—increasing
findability and traffic to
your Pop-up Shop.
SUPPLY�
Collect all product data from a variety of
sources—internal systems, spreadsheets,
and documents—to form the product
information in inRiver PIM
PUBLISH�
Publish your product
information for both your
offline Pop-up Shop and
complementary digital
sales channels for
promoting and selling
your products.
PLAN & RELEASE�
Define your new Pop-up Shop channel and
release enriched, channel-ready content for
your products.
INRIVER PIM SOFTWARE
FOR POP-UP SHOPS
BRIDGE YOUR OFFLINE POP-UP SHOP WITH
YOUR ONLINE PRESENCE
Enhance your brand promise and identity.
Speed your time-to-market for new products
and channels.
Tell product stories that are accurate, complete
and up-to-date in your Pop-up Shop promotions.
Provide relevant information along the buyer
journey—in your Pop-up Shop, on your web site,
or on Amazon or Google Shopping.
Augment your Pop-up Shop assortment with
complementary products from other channels.
About inRiver
Founded in 2007, inRiver is the market leader for simplifying
Product Information Management (PIM) for B2C and B2B
multi-channel commerce companies. Our powerful inRiver
Product Marketing Cloud radically facilitates the creation,
handling, and distribution of perfect product information for a
world-class customer experience in all channels, in multiple
languages. More than 900 brands around the world rely on
inRiver’s PIM platform for efficiently controlling the product
flow for their globally recognized brands.

In order to stay relevant in today’s dynamic retail climate, brands must deliver store environments that encourage high impact engagement with compelling
personalization and delightful yet purposeful surprises. Brick and mortar continues to redefine itself with an updated look thanks to the Internet of Things driving
customer engagement with tactile and sensorial experiences, and pop-up retail is one of the best environments to test new concepts and learn more about your
customers. The Lionesque Group is a team of pop-up architects™ who have produced over 100 retail stores in New York City, Los Angeles, Austin, The Hamptons, and
Puerto Rico. Beginning with the vision of the branded experience, The Lionesque Group guides clients throughout the entire lifecycle of the retail activation.
Customers go to stores hoping to discover. With
Augmented Reality integration a brand can bring a
product to life right before the customer’s eyes with
realistic 3-dimensional holograms making it easier for
them to visualize and understand the intricate
features of a product giving them more confidence to
purchase. It also enables customers to explore
additional options and make personalized
modifications while shopping.
Immersive Experiences
Sales Associates are the connection between your
customers and your product or service offering.
They need to be knowledgeable of dynamic pricing,
minute to minute inventory updates and product
assortment in order to ensure high-touch and
seamless customer interaction. By investing in the
tools to creatively take on daily, real-time situations,
retailers can empower them to take a proactive role
in assisting customers.
Educated Sales Associates
Via strong merchandising and stylized visual displays it
can be easy to seduce a customer to try on the look, but
when the fit isn’t a match and the nearest sales associate
is difficult to find, sales fall short. Now with the integration
of smart fitting rooms, fitted with RFID technology that
can automatically detect which items a customer takes in
to try on, items brought in by a customer can be
automatically displayed to show product information
including alternative size and style options, and allow
shoppers to send mobile alerts to staff to request
additional items of interest.
Personalized Interactions
Key Tip: Understanding what YOUR customer
wants is key. Technology is a tool, and while the
tools to do so exist, integration needs to be
approached with a “customer first” mindset. A
focus on making the journey more rewarding,
easier and more personal via value-add
technologies.
Key Fact: According to the TimeTrade State of Retail
2015 survey of 1,029 consumers: 85% of consumers
prefer to shop at physical stores, and 90% were
more likely to buy when helped by a knowledgeable
sales associate.
Key Tip: Engagement = Data = Knowledge= Empowered
Consumers. By letting consumers communicate, provide
feedback and feel like their opinion is being heard,
brands drive a deeper connection between brands and
consumers.
18

Key Fact: Products were the top content
types for the top 200 global brands in terms
of engagement, at 60% in 2015 beating
lifestyle category by over 20%, via Hootsuite
+ Traditional
Print Media still gives a stamp of credibility to a brand.
When targeting traditional media outlets and reporters,
always be sure to keep in mind what your customer
reads, and target editors that cover the right beat. Make
their job as simple as possible, be organized with
digestible sound bites and high res images.
+ Influencers
Determine which bloggers have built real authority and
trust for your target audience. From there start to build a
relationship with them by involving yourself in the
conversation before you directly reach out. Your goal is
to build a lasting relationship with them as well and the
relationship must feel honest. An influencer will be
excited to post about your brand if they could truly be a
customer and believe in what you stand for.
+ Social Media
Start early on with a key words document, a database you
can refer back to with words that align with your brand
voice and pop-up goals. Then, create one hashtag to help
you track your campaign leading up to, during and after
your pop-up store is open. Next, make an editorial
calendar that includes a countdown, new announcements
throughout your pop-up and be prepared to track and
engage with followers.
Be sure to create a marketing strategy to drive awareness,
excitement and traffic to your pop-up store.
Opening doors, is not enough.
Key Tip: For media outreach
1) make their job easier, pitch usable content
2) know their publishing timelines
3) NEVER do a blast email to journalists
Key Tip: You can discover the right
topics and who is engaged in these
conversations via: google alerts, hashtags,
followers & followings, keywords and social
conversation phrases, blog topics

Pop-up retail has been around as long as retail itself, from the
swap meet startup to the trade show booth, this is not a new
concept. So why now are we seeing Pop-up stores making
headlines and why are so many brands that are traditionally
only in year round brick-and-mortar or pure
play online moving into the game.
Retail is in for a period of carnage and rebirth as evidenced by
the massive store and company closings we see even in the
first weeks of this new year. It’s harder than ever to make a
profitable play in traditional retail today.
Looking deeper into this trend, especially with a focus on
fashion, showcases some key business drivers of Pop-up retail.
INSIGHT
Consumers are driving change in
retail. Today’s social media savvy
consumer knows what trends are
hitting the runway right when they
do, and will tell you what they want
to buy. But having the product they
want is only part of the puzzle now,
as similar choices are readily
available on-line. So, store based
retail can shift focus to the shopping
experience. Limited availability
Pop-ups can provide the product the
consumer wants along with the
experience they need.
CHALLENGE
Traditional retail institutions have giant
store footprints and heavy investments
in inventory, where professional
buyers attempt to tell the consumer
what they should be buying based on
aged in-store inventory. Then consider
the need to move product multiple
times to balance inventories across
large chains, thus reducing margin;
hence the challenges driving change in
retail today.
SOLUTION
With Pop-ups the brand, wholesaler,
or retailer can quickly and with little
investment put current fashion in
front of an informed consumer, in a
fun environment where they can
enjoy the experience of buying from
them. The business can test new
product and get rapid feedback and
sell through a more limited run, with
less risk and with less overhead from
high rents and long supply chains.
BENEFIT
Delivering this core Pop-up experience
to the consumer further endears them
to the brand, as now they can easily
have a universal customer profile that
also works seam-lessly with that
retailer’s online shopping experience.
It is clear that In-store retail will always
be relevant; even vastly successful
online merchants like Gilt and Amazon
push their business into Pop-ups and
stores, the key is how they do it.
The Evolution of Pop-up Retail
The Business Case
20

Real time enterprise class visibility; of inventory
on-hand at any location from anywhere, sales
information, and the real time interaction with
customers and their transactions, both in-store
and online, allows assortments to be balanced and
decisions made to allow quick reaction where
customers have access to all the inventory no
matter where it is; it’s universal and its real time.
Once the cloud headquarters environment is
established, the inventory catalog is secured, CRM
is established, customers imported and then
stores can be set up. The unique nature of a native
iOS app means that all functions from POS, to
shipments, to stock count can be initialized in a
matter of minutes and then run even offline.
Therefore, stores can be set up technologically in a
matter of minutes and staff can focus on the
product and the people; the technology, while
powerful, stays in the background.
Reactions to what is occurring in the business can
occur fast because there is immediate visibly,
systems and stores can be deployed rapidly and
resources can be kept lean. One Step Retail Solutions
has established a program whereby a new client can
go from signed contracts to opening stores, in 90
days. This goes beyond a seasonal Pop-up opening
opportunity for travelling sales, weekend events,
shop-in-shop and the like.
Key Technology Enablers For Pop-up Retail
Technology has certainly been a deterrent to a wider adoption of Pop-up by retail. Traditional POS technology footprints
are not synonymous with efficiency, speed of deployment, or cost effectiveness, until now with the maturation of cloud
and mobile based SaaS applications like Teamwork Retail. One Step Retail Solutions has developed an expertise in
delivering implementations for Pop-up using Teamwork Retail.
Visibility Into The Operation Efﬁciency / Productivity Speed
21

Pop-up shops have become a unique way for retailers to extend their brand and drive additional
revenue. Because most locations are staffed with temporary employees, they are often unfamiliar
with the brand or culture of the retailer. The key to success is ensuring that all employees align with
the company’s culture, brand and operation procedures in the most efficient way, learning “on the
job” rather than out of a manual. Profitect’s prescriptive analytics resolves this with task
management, workforce management, and smart tasks.
Prescriptive analytics allows you to train part time
employees “on the job,” providing employees with simple,
easy to understand tasks in the form of step by step
instructions.
LEARNING ON THE JOB
Profitect provides employees with best practices based
on the company culture, enabling them to not only
complete tasks the correct way, but maintain a
seamless brand identity.
ELIMINATING TASKS IS NOT ENOUGH
Profitect’s integrated task management system ensures
that every employee is resolving the same issue in the
same way, by assigning tasks to specific personnel and
ensuring compliance by creating accountability.
ALIGNMENT AND COMPLIANCE
Task management systems are a great way to
communicate generic duties to your store employees.
However, those tools focus on routine activities.
Profitect’s smart tasks are driven by real time analytics
using the pop-up shop retailer’s data. This ensures
employees, whether full-time or part-time, are focusing
on tasks that deliver the most value.
WORK SMARTER, NOT HARDER

Inventory control
Margin optimization
Cost reduction
Prescriptive analytics can not only assist in alignment and compliance of staff, but can also be used at
all stages of the operation, from planning and execution all the way through wrap-up and next steps.
Since 2012, Profitect has helped companies leverage existing big
data investments to identify, resolve, and measure opportunities
to transform the business by delivering actionable prescriptive
analytics to the right person, at the right time.
Who is Profitect?
Labor efficiency
Promotion execution
Compliance
Inventory integrity
OTHER AREAS OF IMPACT
Notify staff about which products
are likely to sell out, what they
should order, and the products
in the store that are not selling
and how to promote them.
GETTING THE BEST
BANG FOR YOUR BUCK
Analyze your sales data and
provide employees with
information on commonly paired
items, making it easier for them to
upsell and increase basket size.
A TISKET, A TASKET, A
MUCH BIGGER BASKET
Profitect SOLUTION SUITE
Cluster customers by the
purchasing patterns and type of
products they buy. Use this
information to market the right
incentives to the right customer.
GET IT RIGHT EVERY TIME
Identify opportunities for
improvement in operations,
supply chain, marketing, or best
practices, in order to strengthen
process and improve overall
performance and sales
LOOKING TO THE FUTURE
Store
Operations
Financial
Strategies
Shrink/waste/damage
reduction
Internal/external fraud
Loss
Prevention
Cost to serve
Abandoned carts
Sentiment analysis
BOPIS – Inventory Integrity
Omni
Channel
Promotional execution
Loyalty shopping behavior
Basket analysis
Marketing
Ship to sale ratio
Allocation optimization
Vendor quality & compliance
Halo effect
Merchandising
23

STAFFFING DO’S – to design & execute projects
Do use a simple process to define & scale the project
Do consider left- and right brain aspects, capturing
customers’ hearts and minds with your pop-up shops
Do assign a cross-functional leader who reports
directly to a C-suite executive
STAFFING DON’TS – to design & execute projects
Don’t let the project steal resources or risk the success of your
core business
Don’t allow mission creep, budget overruns, or department turf wars
at the expense of company goals
Don’t assign or hire permanent employees for temporary
project work
EXPANSION SHERPAS might be a preferable option vs. assigning
permanent employees. Sherpas Expand your Market FootprintSM
faster.
It's difficult to run a business, and build a new business, at the same
time, using the same resources.
Sherpas supply capable capacity to build a new business (new
channels, new categories, yes even pop-up shops) that fits inside your
existing business.
Sherpas execute, faster – without distracting from your core business.
Our Sherpas build a new business that fits inside your business, to
increase your enterprise value.
POP-UP SHOPS are a cross-functional challenge
Retail pop-ups serve to build your brand and expand your market footprint
– a cross-functional challenge.
“Functional” barriers create “cross-functional” challenges. Many questions
(often raised first time in the context of pop-ups), need to be addressed:
What physical space?
Layout and visual merchandising?
IT and supply chain connectivity?
Brand and sales process implications?
Financial model, execution excellence, etc.
WE DEVELOP IDEAS & EXECUTE them, until your team is comfortable
to run with the project
A SIMPLE PROCESS
EXPANSION
SHERPAS
24

– collaborative
– elite guides who get it done
– we expand your market footprint, faster
Ideation
Sherpas
Execution
The reALIGN Difference
Sherpas – we offer trusted local guides who scale the mountain and carry the load….experienced
executives who have “been there, done that”
Collaborative – we aim to develop solutions together with you, better than each can achieve alone
Focused on execution – it’s not about a binder on a shelf, we’re all about Go-to-Market results
Expansion Sherpas take a cross-functional approach to market expansion projects – from
understanding and articulating your unique value proposition and your target market, to optimizing
everything in between, so you can profitably deliver to your customer.

Harness the power of retail IoT to heighten shopper engagement,
increase sales and reduce costs
By their very nature, pop-up stores are perfect laboratories for
retail to innovate, test, measure and improve. RetailNext’s smart
store software platform empowers a tailored advanced analytics
approach to answer specific questions to help grow your business.
Go beyond simple traffic and conversion metrics and begin to
understand the complete in-store shopping experience. Continue
to keep your shoppers constantly delighted with seamless,
friction-free and magical shopping journeys.
Optimize the shopper experience

Analyze staff and shopper interactions.
Develop a deep understanding of how and where store
associates and shoppers interact throughout the store.
Segmentation.
Segment store visitors and their paths by age, gender,
shopper vs. store associate, etc., and understand how
different groups shop and buy in-store.
Understand the full shopper journey.
Measure individual and aggregate shopper journeys
with full-path analysis, and understand how these
experiences directly impact the bottom line.
A/B testing simplified.
Focus on how specific store elements and changes
impact the business. Optimize for shopper
engagement, growth and sales.
Test new store concepts.
Test and measure new store design, layout and
Merchandising concepts before committing to
larger rollouts

How does Storefront revolutionize retail?
Book short-term space as easily as a hotel room
Pick a city and define size,
launch date, duration and
neighborhood preferences
Choose from our selection of
10,000 spaces across 3
continents
Storefront specializez in connecting brands, retailers, fashion labels and e-commernce
businesses with flexible short-term retail space to create pop-up store, showrooms or
other concepts.
You can find and book space through our online markeplace or via our offline
concierge service for durations from one day, one week, upwards of several months or
a year.
We now manage over 10,000 available spaces across 3 continents and to date have
launched over 7,000 pop-up stores globally.
Our mission is to provide access to premium pop-up space on every high street, in
every city, around the world.
Conduct viewings in person and
book your favorite space
Increased Sales
Traditional
Retail
$1,320
Average sales
per pop-up sq ft
12 Days
Average time to rent a space
with Storefront
$2,146
Average cost to open a
pop-up with Storefront
$366
Sales per sq ft in an average
retail environment
60 Days
Average time to sept up a
retail store
$105,159
Average cost to open a
traditional brick-and-
mortar store
Reduced Setup Time
Reduced Setup Costs
Launch your pop-up shop or
Showroom
Storefront
Pop-Up
28

How to find & secure a top pop-up space
The size of your space will depend on
a variaty of factors, including
inventory and the number of people
you expect. As a rule of thumb, shoot
for 10 square feet of space per
person. Consider elements of the
space‘s layout as well. If you plan to
manage inventory on-site, is there
space for back stock? Are there
windows for a window display? How
about dressing rooms?
Look at your budget to figure out how
much you can spend on rent. The size
and location of your space will
influence its price, and the length of
your pop-up will matter, too.
PRICE
Take a moment to imagine what
types of features and amenities
you‘ll need to support your pop-up
vision. This could include a specific
type of lighting, technology (wifi,
sound system, projection screen,
etc.), kitchen, bathrooms, electrical
outlets, or security system. If there‘s
something you absolutely need,
make sure to ask a potential
landlord upfront.
When choosing a neighborhood,
imagine where your target
customer lives, works, shops, or
hangs out. If you‘re not sure, and
out where similar brands (or your
competitors) have opened their
own storefronts and start there.
Things to consider
when searching
for a space
Think about how your target customer
will get to your pop-up shop. If they
drive, is there a place for them to park
nearby? Is the location accessible by
public transit?
ACCESSIBILITY
Foot traffic refers to the pedestrians
that walk by a space. A storefront on a
street with generate more sales, but it
may also be more expensive
FOOT TRAFFIC
You know your brand better than
anyone. The space you choose
should mesh visually with your
brand and look like an extension of
your e-commerce website, if you
have one. For example, if you own a
kitschy vintage clothing e-store,
would it make more sense for you
to rent an eclectic boutique or a
corporate event space?
AMBIANCE
AMENITIES NEIGHBOURHOOD
SIZE & LAYOUT
29

www.sophelle.com
info@sophelle.com
945 Concord Street
508.875.5700
VENDOR DIRECTORY
https://www.inriver.com
125 South Wacker Drive, Suite 2500
Chicago, IL 60606
Chris Robinson
chris.robinson@inriver.com
(908) 635-1950
www.lionesquegroup.com�
116 West 23rd Street, Suite 500 New York,
NY 10011
Melissa Gonzalez�
mg@lionesquegroup.com
(347) 321-6800
www.onestepretail.com
22520 N. 18th Drive, Phoenix, AZ 85027�
(623) 580-8181
Kevin McAdam�
kmcadam@onestepretail.com�
(800) 266-1328 x 4131
www.thestorefront.com�
433 Broadway, New York, NY 10013
contact@thestorefront.com�
(646) 851-2642
www.profitect.com
1601 Trapelo Road, Suite 286
Waltham, MA 02451
Francis Clark
fran@profitect.com
781-290-0009
www.reALIGNforResults.com
113 Overlook Drive Cincinnati,
OH 45140
Benno Duenkelsbuehler
Benno@reALIGNforResults.com
(513) 407-5436
retailnext.net�
60 S. Market Street, 10th Fl. San Jose,
CA 95113�
Ray Hartjen
ray.hartjen@retailnext.net�
(925) 895-5441/(408) 884-2162�

JULIE BARILE
Director Digital Commerce Practice
Julie Barile has more than 17 years of ecommerce and digital
marketing experience in both the mass and luxury markets.
Having led digital marketing at several top global companies,
including Avon, Lancôme, and Toys“R”Us, Julie’s experience
spans several product categories, business models and
corporate functions. Focusing on business strategy and
technology selection, Julie has helped top online and
multi-channel retailers gain operational efficiencies, grow their
businesses, select best-fit technology solutions, and solve for
their unique business challenges.
Please feel free to reach out: jbarile@sophelle.com
About The
Author
31

www.sophelle.com
info@sophelle.com
508.875.5700
945 Concord Street
TRADEMARKS
Sophelle Focus Reports are trademarked by Sophelle. Vendor and solution names and trademarks
are the property of the respective vendors. All rights reserved. No portion of this report may be
reproduced without authorization by Sophelle.
GET IN TOUCH
Sophelle, an experienced provider of management and
technology consulting services to the retail and fashion
industry since 1995, helps both emerging and Fortune 500
clients achieve IT and business objectives by delivering sound,
flexible strategies and reliable, efficient solutions.
Sophelle is privately held with offices in Boston and New York
City and comprised of a team of industry experts and more
than 50 retail technology professionals.
32

Sophelle Focus Report | Boundaryless Commerce: Pop-up Retail June 2017

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