Setting Up a Pop-up Shop Business Plan

Executive Summary

The article focusses of the creation of a pop shop within Covent Gardens in the city of London. The buying and merchandising strategy for the shop is discussed in detail. The main objectives of the shop to the customers are delivering the best Japanese denim products, hand stitching the products, using natural dyes to create pigments, creating transparency in the production process and to effectively provide items with the vintage and classy look.  The target market is the youths between the ages of 20-35 for both genders.  Therefore, the purchasing plan will seek to find Japanese online suppliers of denim through the larger Alibaba market. Production would then commence a month before the opening of the shop. To effectively capture the market, online marketing will be carried out. The visual appeal of the shop will involve classical and vintage artwork, calligraphy and arrangement of the clothes within the shop.




Table of Contents

Introduction. 4

Objectives & USP.. 4

Location of Shop. 5

Customer profile. 5

Literature Review.. 6

UK Fashion Industry. 6

Merchandising and Buying. 7

Fashion Forecasting. 7

Delivery management 8

Product Analysis in the Fashion Industry. 8

Range plan. 9

Supplier Strategy and Production. 9

Merchandising /KPI’s. 10

Visual Merchandising. 10

Conclusions and Recommendations. 11







Pop up shops are a retail type of business opened for a short period of open spaces.  It started off in Los Angeles and had kicked up greatly and now has an international worth estimated of about $50billion.  It is a great retail idea especially for the changing trends caused by the retail apocalypse in the 2010s. The shops are temporary and could be converted for any other activity after the sales are over. Their main attraction is the ability to build a fashion idea and culturally influence its adoption. Within the fast-changing fashion and economic scene, setting up a pop-up shop within major towns is a progressive way to tackle the market. It, however, requires that one can create unique products that would blend in with the selected customer base.  It however needs involvement in creativity with fashion trends and the marketing strategies. The assignment was intended for setting up a pop-up shop within London. The report will discuss the development of the pop-up shop, the product selection and the methods used to make the shop stand out. Merchandising and buying the plan for the shop will also be discussed in detail.

Objectives & USP

The business was set up with specific objectives. They are

  1. To produce Products that are made using only the best Japanese Denim.
  2. To hand-stitch the products by ourselves
  3. To use pigment dying from natural dye companies for products.
  4. To create Small Detailing’s given on every product to make it look vintage and classy shop appearance
  5. To create transparency in the production of products


Location of Shop

The shop would be located in Covent Garden in London. It has an upbeat, energetic retail neighbourhood. There are street performers who juggle alongside market stalls and grand flagship stores. Several tourists are also attracted to the area. There is a local crowd at lunchtimes and after work who would constitute the largest percent of the shoppers.  Bars and restaurants bring people to the are in the evenings since it is a quick walk from Covent general Station.

Customer profile

The products will include; jeans trousers for males and female, shirts, t-shirts, tops, sweatshirts and accessories for the men. Later advancement will see the production of surface design jackets, cardholders, jeans trousers for both genders, cross body bags, and kids wear.

The target male customers are the trendy men between the ages of 20-35 to fit in with the ever-changing trend of slim fit jeans trouser, classy coats and jackets, and accessories.  They are to be of middle income working hospitality, construction, labour, self-employed and also the students. The office jobs workers would fit well with the shirts collection within the pop shop. The level of education should be at least of high school and fit well with the undergraduates. They should live in the region of Coventry in the city of London. The targeted populations should also be single, living by themselves and most probably have pets. The market will cover all hair colours.

The female-targeted age group is between the ages of 16-40 who live a life of adventures and still fit in within the office setting. They should be of a higher level of education preferably having attained an undergraduate degree. They should live in the city of London in Coventry. Not married, fun loving, and most probably have pets.

Literature Review

UK Fashion Industry

The UK is one of the great pioneers within the fashion industry. The rising trend within the UK is the increase of outsourcing of products from external markets instead of the home-based manufacturing units for the retailers.  It has been caused by the increase in labour costs and the price of raw materials (Koumbis 2014, p.123).  Therefore, there has been an increase in outsourcing to counties with bulk production, cheaper raw materials and bulk of qualified employees in countries such as China and India. The retail market for the clothing and accessory shops in the UK is filled with many competitors and thus increasing the bargaining power of the consumers (Pringle 2007, p.49). There are already a larger number of players within the market, and the customers have a variety to choose from (De Chernatony 2010, p.304).  Within the competition consist of larger players that have been dominant in the market and controlled a larger share of the consumer base (Okonkwo 2007, p.12).   They have formulated policies and branding methods that make consumers loyal to their stores. With the high level of competitive edge within the market, differentiation of a new product will determine its survival within the market. Trends have to be monitored so that the new product will have the edge over the others (Ziv 2011, p.6).

Merchandising and Buying

Merchandising and buying is a broad field that involves the activities of buying goods, promoting them and selling the goods or services.  Buying involves the direct purchasing of the right amount of goods at the right time and a price range that will ensure continued profits. Professional buyers are found in the retail and wholesale business (Smith & Zook 2011, p.65). The whole field involves several other subfields. The buyers must be good at analysing consumer trends to know what to buy. Excellent communication skills are required so that communication with designers, suppliers and manufacturers is maintained (Kapferer 2008, p. 23). Merchandisers on the other hand deal with how the product reached the customer. The aesthetics such as packaging, display and branding are their main activities.  The promotion of the product within online and physical platforms is carried out by the merchandisers (Bailey & Baker 2014, p.102). Profits are judged from two ends. The buyer’s end delivers profit by having good relationships with suppliers so that they get the products at a good price. The merchandising end, on the other hand, determines the way the product was promoted, branded, packaged and displayed thereby attracting customers. The selling price would then determine the profit margin on the merchandising agent side (Jones 2006, p.2).  The activities involve this field include;

Fashion Forecasting

Fashion forecasting is a global career that is tasked with the prediction of upcoming trends.  A forecaster in this field looks out for graphics, textures, beauty, prints, grooming, style, footwear and other trends that would come into place within the fashion industry. They are therefore the ones that are responsible for attracting customers to stores while helping retailers to brand themselves and sell the brand. The work of the trend forecasters of the present time relies heavily on social media and the internet. The global preferences and ideas regarding fashion have been made to come even close to the forecaster with the internet tools. The steps involved in the forecasting process begin with the analysis and understanding of the visions of business and the customers. From there, it takes the necessary steps of collecting data on available merchandise and with the information, get to predict the upcoming trends in the market. Once the trends are predicted, the retailers use the information to choose proper merchandise for their companies and shops. For small startups, the best way to approach the forecasting is by looking out for short-term forecasting.  It involves checking out domestic and international trends within the pop culture.

Delivery management

Delivery management chocks for the transfer of goods from one location to another. There are the basic tasks that the job entails for s retail business. The main task would be the transportation. Other than the main task, delivery management should introduce process improvement within a shop  (Varley 2014, p. 1).  It achieves this process improvement through the creation of time-saving and money-saving ventures. Cost reduction comes in the form of liability cost reduction, vehicle tracking, route optimisation monitoring and quick dispatch methods (Lea-Greenwood 2012, p.68). The process of time-saving involves ordering goods 3 to 4 months earlier so that manufacturing could happen 2 to 3 months and trading to take further 5-6months. Use of technological approaches in ordering such as e-commerce methods that deliver goods helps in reduction of costs and time.

Product Analysis in the Fashion Industry

The flexibility of products in the Apparel industry is key. It assists one to change with the times and maximise the profits in every season. Most people prefer to shop retain in stores because of the comfort that comes with being able to fit the clothes before purchase (Tungate 2008. p. 29). The secret behind a good market penetration within this field is proper product analysis (Aaker 2010, p.14). It involves research on a daily basis to check on the progress of the selected products and the lessons learnt from their continued trends. The relation between product analysis and the merchandising is the financial concept of buying and finance (Solomon & Rabolt 2008, p.23). It checks on the buyer’s range plan, budgets and success criteria.


Range plan

The range plan for the pop shop is divided into three categories according to the range pyramid. The topmost products within the collection will go for an amount of GBP 785 and above. It will consist mainly of designer trousers for males and females. The middle selection within the pyramid consisted of products within the range of 105-285 GBP. The products under this category include trendy trousers for both the females and males, sweatshirts, denim jackets, and tops for the men. The lower category for the pyramid will be within the price range of GBP 24-178. The clothes within this section include T-shirts, Shirts, denim shirts, men jeans, ties, and bags for both genders and unisex.

Supplier Strategy and Production

With the current trend in outsourcing for products from the external markets, the products for the pop shop will take the same trend. The online platform will provide a good interaction point for getting to the suppliers out of the country. The biggest Asian online platform for the purchase of jeans, accessories, shits, ties and the rest of the products is (Dillon 2011, p.109). Jeans material will be ordered plus other needed to-go-withs such as zips, dyes, pins and buttons. The products would be ordered four months before the opening of the shop. Production will be home based. The design sewing and dying will start off a month to the opening of the shop to provide for enough time to accumulate enough starting stock. It will then continue throughout the selling period with changes in designs depending on the market performance and trends.

Merchandising /KPI’s

The main goal of the marketing and the promotion of the business is to make it well known within the Coventry garden and the whole of the city of London. Therefore, the indicator for this goal would be the popularity of the pop shop.  The other goal of the project is to set up a pop shop that will run profitably for six months. It will be measured by the profitability of the business throughout the period (Keller 2012, p.54). Another method to measure its success is witnessing the incorporation of various surface design techniques in designing of embellishments and prints.  The other goal that is measurable is the ability to create authentic techniques. Later, the business is to develop the market for kids and womenswear. It will indicate a better performing pop shop.  The other measurable indicator for the business is the popularity within social media platforms especially Instagram, and Facebook

Visual Merchandising

The pop shop will be in the form of a moving truck. The visual appeal created would be in the form of paintings and calligraphy on the body of the track. Proper lighting and arrangement of the clothes would also come in handy (Posner 2011, p.10).  The theme of the shop would be vintage. Therefore, the shop will have vintage sewing machines, paintings and props.  The mission and USP of the shop will also be written on the track

Conclusions and Recommendations

The store has a good location and a good customer base. The main task of handling its success lies on the practicality of methods involved in the buying and merchandising. The shop would enjoy great product markets from abroad countries that are cheaper and have the transportation element eliminated due to the delivery platforms of online marketing. With proper analysis of the parameters surrounding the buying a merchandising and implementation of the strategies, then the pop shop would be successful.



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De Chernatony, L. (2010) From Brand Vision to Brand Evaluation. 2nd ed. Oxford: Butterworth Heinemann.

Dillon, S. (2011) The Fundamentals of Fashion Management. London: AVA Publishing

Jones, R.M. (2006) The Apparel Industry. Blackwell

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Ziv, Y. (2011) FASHION 2.0: Blogging Your Way To The Front Row.: The insider’s guide to turning your fashion blog into a profitable business and launching a new career. London: Createspace Independent

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