Relaxation of pop-up restrictions: What do retailers need to know?

Why are we talking about this now?

Communities secretary Eric Pickles has unveiled plans to reduce red tape affecting high street planning, and scrap restrictions that hinder start-up businesses from opening pop-ups in vacant stores. Mary Portas called for more pop-up shops to drive footfall in her High Street Review. The Government has also published a guide on how to make town centres a more social experience.

What is being proposed?

Landlords would be able to change an empty shop’s retail usage, for instance from food to fashion, without charge for up to two years before having to secure planning permission. This could save shop owners an average of £1,245. Standard temporary leases will also be provided to make it easier for businesses to secure deals with landlords.

What are the benefits?

The proposals should make it easier for retailers and entrepreneurs to secure short-term leases and test the market in a low-risk way, while larger retailers and pure-plays – which have increasingly used pop-ups – can test the water with different offers. Tesco, for example, ran an F&F pop-up in Covent Garden in May and eBay opened a store in Soho last Christmas. Pop-ups can create a new vibrancy in an area as customers flock to a short-term novelty. The Mailbox shopping centre in Birmingham has already been filling vacant lets with pop-ups to create a buzz.

Are there drawbacks?

Gaining planning permission and setting up a store can be costly for many retailers, and some store groups have complained that the proposals create an uneven playing field. Some consumers may also prefer a consistent offer on their high street rather than experiencing continual change.

What has the reaction been to the proposals?

Pickles’ decision has infuriated some in the retail industry who believe he has shunned more critical issues, including rates and upward-only rent reviews. Some have questioned how the proposals will affect existing stores already struggling on blighted high streets, and there are fears independent retailers may lose trade to pop-ups that sell similar products. However, the British Council of Shopping Centres welcomed the plans. Its director of policy and public affairs Edward Cooke said: “As retail destinations continue to compete with online and multichannel retailing, we should remember that the most successful locations benefit from the creation of theatre and a sense of place.”