Will Pop-Ups Work in Subways?

Uniqlo, the Japanese apparel chain, has opened a pop-up store at the Union Square subway station in lower Manhattan.

New York’s Metropolitan Transit Authority (MTA) in a statement said the opening is part of an initiative "to get hip, small stores to lease space in the short-term" while the agency is arranging long-term leases.

According to the MTA, the underground pop-ups will allow small entrepreneurs, online businesses and established corporations to rent space in generally "as-is" condition to provide "high visibility" exposure for brands as a marketing tool while also supporting on-site transactions. In some cases, customers will be encouraged to make their purchases online or at larger stores off site.

"Pop-up stores will provide a fresh and beneficial element to our stations while also improving the image and desirability of retail space in the subway," said MTA chairman and CEO Thomas Prendergast.

"The younger generations are gravitating to the subway system as never before," added MTA real estate director Jeffrey Rosen. "They are savvy about shopping online. Retailers want to reach them where they are, which is our subway system."

uniqlo pop up

The MTA piloted the concept in July by hosting The Newsstand, an indy-oriented media seller, at a station in Williamsburg, Brooklyn.

Uniqlo’s shop will be open through the holidays with a focus on selling outerwear in a wide variety of colors.

"We get to show our brand to new customers and MTA gets to show off how this can be a viable location for other retailers," Dario Nieva, Uniqlo store manager, told the local ABC News affiliate.

Over the last year, Peapod, the online grocer, opened virtual grocery stores at a few subway stations in Chicago that enabled shoppers to scan and buy groceries using its smartphone app. It has also opened several other virtual stores in commuter rail stations in the northeast.

BrainTrust

Discussion Questions

Do pop-ups make sense in subways? Does the mobile shopper open up more opportunities for retailers reaching customers in subways than in previous decades? Do you see underground pop-ups as potentially more of a marketing or commerce opportunity?

Poll

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Zel Bianco
Zel Bianco
10 years ago

This is a good idea as young people use the subway system extensively as stated and is a great way to reach them. Having shops like these to browse while waiting for the train makes sense and will certainly improve what can be a rather dreary place. Awareness for the store and brands will be the result as people will talk about it and hopefully make purchases.

As long as the MTA does its part in maintaining the subway system and making sure it stays safe it will work. It is amazing to me how far the subway system has improved from the bad old days.

Steve Montgomery
Steve Montgomery
10 years ago

Location, location, location. What makes a great location? Generally it is somewhere there are large numbers of potential customers that have easy access and egress, etc. Subways certainly seem to make sense, depending on the product being sold.

The product should be something that is easily carried, has a broad appeal, and has a relatively short sales process. Uniqlo’s focus on outwear should allow them to not only make more people aware of their brand, but to also sell product.

Roger Saunders
Roger Saunders
10 years ago

This concept offers a solid marketing opportunity, and a modest commerce platform. The Gotham subway system provides 1.6 billion rides per year, with an average weekday ridership of 5.4 million and a weekend ridership of 3.2 million souls.

If Uniqlo, a quality merchant in Asia, keeps the pop-ups clean and fresh, they’ll pick up buzz around the Union Square location. And, being the “first-in” offers Uniqlo added swag.

The mobile devices that consumers carry (the September Prosper Monthly Survey indicates that 62% of adults now have a smartphone – 78% of Millennial Generation has one), offer an opportunity to enhance that buzz.

Cathy Hotka
Cathy Hotka
10 years ago

Yes, yes, yes! Uniqlo has a captive audience that would welcome an opportunity to purchase a birthday gift or small splurge. This should generate a significant amount of revenue at night, when couples headed out on dates and expecting more infrequent trains have some extra time on their hands. It’s a winner.

Gene Hoffman
Gene Hoffman
10 years ago

Everything today seems to make sense to someone and nonsense to someone else. The endless stream of new technological enhancements and promotional gimmicks keep
retailing buzzing … but perhaps little else. Pop-ups, particularly as subway traffic increases, open up yet another road to reach potential targeted customers.

Chris Petersen, PhD
Chris Petersen, PhD
10 years ago

Omni-channel is the new retail normal. Consumers, especially Millennials, shop anytime and everywhere. The overriding success factor is to be where consumers are active, and subways certainly are a prime location for traffic.

While Tesco has been successful selling commodities via QR codes in South Korean subways, the UNIQLO pop-up seems to be better fit. People want to see colors and try on styles. My predication is that UNIQLO will be the first of many pop-ups for specialty retail in transit hubs … IF transit authorities keep location costs reasonable.

Ed Dunn
Ed Dunn
10 years ago

The Tokyo subway system is a great model, full of small shops between transfer from one station to another. The use of QR, NFC and mobile payments and cool vending machines started in Tokyo over 10 years ago and prevalent in the subway system.

I could not and still cannot believe the amount of shopping activity throughout the Tokyo subway system and it is simply amazing to see. I believe Singapore is not far behind.

I see the underground pop-ups as an economic opportunity, providing jobs and innovation, tapping into millions of people, and going beyond display advertising.

Warren Thayer
Warren Thayer
10 years ago

With the crime and bad vibes in the subway system 20 and 30 years ago, when I rode it daily, this would not have been a good idea. Today, it’s a no-brainer, for both marketing and commerce.

John Hyman
John Hyman
10 years ago

It makes sense when the right brand is involved and there is an alignment with the audience. Having lived in Manhattan, I have observed that the demographic at one station can be very different from another. But the use of space, applied graphics and color could be an excellent enhancement to an otherwise dull environment.

Having said that, will it be appealing to shop on a hot, muggy summer day in the underground? Maybe a Granita bar…?

Lee Kent
Lee Kent
10 years ago

Yet another avenue for both marketing and commerce. This is a great idea for the right brands, but the key to success will be the safety and security in the subway.

I believe retailers will also need a quick checkout approach like scan and go for those customers who need to dash for the train.

Kenneth Leung
Kenneth Leung
10 years ago

I think it makes sense because people are looking for new things all the time. The short term lease means retailers can test locations to find out whether their merchandise appeals to the commuters, which I am sure will vary station by station.

Ed Rosenbaum
Ed Rosenbaum
10 years ago

Another line opens for retailers to show and sell. A great idea with strong potential for success. I am sure many years ago skeptics were saying retail and food locations at airport terminals was a bad idea. Look at the success they have had.

Lee Peterson
Lee Peterson
10 years ago

Where else would you do this? If it’s a New York thing then sure, it’ll be somewhat effective. But in our second largest city; not so good.

Seems like a P.R. stunt vs a rev generator to me.

Craig Sundstrom
Craig Sundstrom
10 years ago

Do they make sense? As long as they don’t interfere with traffic flow – which I assume, is still the MTA’s primary mission – why not? But the potential beyond NYC is clearly limited, since there are only a dozen or so subway systems in the U.S. (and limited even within NYC, I imagine…we aren’t going to see many of these in the Bronx or Brighton or most of the systems 250+ other underground haunts).

Brian Fletcher
Brian Fletcher
10 years ago

For the right brands and consumers, pop-ups in subways make perfect sense. Brands need to be sure they consider whether or not their consumer target(s) are in fact those taking the subway. If brands and consumer target(s) align, it could be great for both marketing and commerce.

Ralph Jacobson
Ralph Jacobson
10 years ago

This model is being proven around the globe with malls in Tokyo, and virtual stores in Korea. There is every reason in the world to believe the subway passengers in NYC will love the chic, edgy products Uniqlo offers there. GREAT retail “channel” to leverage. Also true for CPG brands.

Karen S. Herman
Karen S. Herman
10 years ago

A Uniqlo pop-up shop in the Union Square subway station through the holiday season is a brilliant move by the brand and a huge coup for the MTA.

The MTA wins hands down by improving otherwise vacant space with unique retail engagement for commuters. They also benefit with short-term leases while they arrange for longer term commitments. And finally, the MTA wins big for bringing a type of disruptive retail that has been popular in Tokyo, as Ed Dunn mentioned, as well as throughout Europe, stateside.

The dynamic between mobile shopping and pop-up retail is key and gives entrepreneurs, online businesses and brands that lease pop-up space many choices in how they handle transactions as well as how they drive consumers to their shop.

Underground pop-ups are a marketing opportunity certainly and can be financially beneficial to the owner/operator if the logistics are well planned and well handled.

Shep Hyken
Shep Hyken
10 years ago

Best part about the pop-pp store is it’s an inexpensive entry point. Outside of just another outlet to sell, pop-ups are opportunities to catch the impulse sale, create brand awareness and test new product.