S3-A1-Pop-up Store As A Foreign Operation Mode (FOM) For Retailers

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Pop-up store as a Foreign Operation

Mode (FOM) for retailers
ARTICLE in INTERNATIONAL JOURNAL OF RETAIL & DISTRIBUTION MANAGEMENT JULY 2014
Impact Factor: 0.54 DOI: 10.1108/IJRDM-01-2013-0032
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1 AUTHOR:
Karine Picot-Coupey
Universit de Rennes 1
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The pop-up store as a foreign

operation mode (FOM)
for retailers
Karine Picot-Coupey
Graduate School of Management (IGR-IAE), University of Rennes 1,
Rennes, France
Abstract
The pop-up store

as a FOM for
retailers
643
Received 22 January 2013
Revised 21 June 2013
14 February 2013
15 December 2013
Accepted 16 December 2013
Purpose The purpose of this paper is first, to describe the characteristics of a pop-up store in an
international context, second, to investigate the motivating factors for its choice and third, to analyze
its role in the retail internationalization process.
Design/methodology/approach A multiple-case study was adopted. Research was carried
out using secondary data sources, social media observation and semi-structured interviews with
senior managers in charge of the international development and management of pop-up stores.
A conceptualizing content analysis was conducted both manually and with NVivo software.
Findings The main results cover the following aspects of an international pop-up store and
highlight the differences between this choice of FOM and other store formats: key characteristics:
location, design and atmosphere, merchandise mix, and store events are very creative in order to
attract foreign consumer attention; choice motivations: three motivations were found, which were first,
to test and adapt the concept with foreign consumers possibly unfamiliar with such a store concept,
second, to raise and sustain the international profile of a retail brand, and third, to develop relationship
networks with stakeholders in foreign markets; role in the retail internationalization process: a dynamic
approach is adopted as role varies from mode switch at the entry stage to mode combination at the
further expansion stage.
Research limitations/implications The results of this research suggest avenues for future
research, particularly in relation to how the concept of the international pop-up store will evolve
over time.
Practical implications This research provides guidelines for international retail managers
wishing to choose a pop-up store as a foreign operation mode (FOM).
Originality/value This research provides a new insight into the characteristics, choice motivations
and management of a pop-up store in an international context.
Keywords Internationalization, Retailing, Foreign operation mode, Pop-up store
Paper type Research paper
Introduction
Since 2008, there has been a growing trend for international retailers to use pop-up
stores in foreign markets, such as a Uniqlo store opened for two months in Paris in
2009, an Azzaro shop launched for ten weeks in 2010 in Riyadh, and a Louis Vuitton
store set up for only four months in fall 2008 at the Museum of Contemporary Arts in
Los Angeles.
The pop-up store, also referred to as a temporary, itinerant or guerrilla store, is a
retail space that is intentionally opened for a short period of time (Niehm et al., 2007).
The Japanese high-end fashion brand Comme Des Garcons is often presented as the
The author would like to thank the retail managers who accepted to participate to the research
project for their support.The author also wants to thank Marine LeGall-Ely and Rozenn Perrigot
for their notices and suggestions that allowed her to improve the paper.
International Journal of Retail &

Distribution Management
Vol. 42 No. 7, 2014
pp. 643-670
r Emerald Group Publishing Limited
0959-0552
DOI 10.1108/IJRDM-01-2013-0032
IJRDM
42,7
644
initiator of the international pop-up store trend, as it opened its first store of this type in
2004 in an old warehouse in former East-Berlin for a period of just one year. Since
this initiative, the phenomenon of international pop-up stores has exploded insomuch
as they are viewed as the latest expression of innovative solutions in marketing
channels (Musso, 2010, p. 37).
Even though the number of international pop-up stores continues to increase,
they have received very little coverage in the international retailing literature to date
(Picot-Coupey, 2012). However, it has been widely acknowledged in the academic
literature that selection of the most suitable foreign operation mode (FOM) is an
essential but very difficult decision (e.g. Welch et al., 2007). Managerial reports have
also stressed the key role that the FOM decision plays in retail internationalization:
Perhaps most critical is the method of entry into the chosen market (Deloitte, 2009,
p. 3). Therefore, it seems particularly worthwhile to gain a deeper understanding of
what makes a pop-up store an appropriate choice of FOM.
As such, the purpose of the present research is to investigate the choice of the
pop-up store as a FOM and its role in the retail internationalization process. If a few
research has been conducted on pop-up stores (Niehm et al., 2007; Surchi, 2011;
Russo Spena et al., 2012), none of them has focussed on their use in an international
context up to now. Thus it is interesting to explore how heads of international retail
brands assess the distinctive features of a pop-up store in a given foreign market
in order to describe the characteristics of a pop-up store as a FOM and analyze
the motives for its choice. These questions worth considering both at the entry
and expansion stage: this allows addressing FOM development over time and its
connections with the retail internationalization process which are considered key
issues (Burt et al., 2008; Welch et al., 2007; Benito et al., 2011).
This research taps into a novel and contemporary subject. Its contribution to the
international retailing literature lies in the detailed analysis of pop-up stores as an
innovative FOM and in the presentation of an enlarged typology of retail FOMs.
It offers a dynamic conceptualization of FOM choice in retailing as it depicts the
management of the international pop-up store both at the entry and expansion stage,
when used in isolation or in combination with other modes.
The first section of this study presents an overview of the literature on FOMs and
pop-up stores. The case-study methodology used in this research is then described,
followed by a presentation of the main results and an in-depth discussion thereof. Finally,
the limitations of the study will be discussed and avenues for future research suggested.
Retail FOMs and the pop-up store: a literature review
The research framework was built from the international business and retailing
literature both on FOMs and pop-up stores. Numerous retail FOMs exist and new ones,
such as pop-up stores, appear over time.
Retail FOMs
Retail FOMs refer to the means by which retailers establish an operational presence
in non-domestic markets (Alexander, 1997, p. 278). Hollander (1970) and Waldman
(1978) were the first to document how retailers moved into international markets.
Hollander (1970, p. 145) stated that the most common FOMs were the purchase
of existing stores and firms, participation in joint-ventures, establishment of foreign
subsidiaries and franchising plans, whereas management contracts and mergers were
presented as FOMs that were less frequently used. Research on this topic had been
limited until the 1990s, when studies on retail internationalization started to consider
the FOM as a key element in this process (Burt, 1993). Dawson (1994) presented five
main FOMs for international retailers: internal expansion, merger and takeover,
franchise type agreement, joint-venture and non-controlling interest. Merger, acquisition
and joint-venture were subsequently discussed to highlight their precise outcomes
(Wrigley, 2000, 2002) while wholly-owned and franchised stores received specific
attention in the context of global retailers international expansion (Moore and Fernie,
2000; Park and Sternquist, 2008). In recent years, the international retailing literature has
shown an ever growing interest in FOMs (Doherty, 2000, 2007; Burt et al., 2008), with
qualitative research shedding light on retail experiences. FOMs not mentioned in
conventional typologies were then observed: wholesaling, concession, but also storewithin-store and flagship store (Moore, 1998; Fernie et al., 1998; Hutchinson et al., 2007;
Moore et al., 2010). Initially considered as store formats, these two latter were observed
as FOMs too. Indeed these formats were intentionally used by retailers to move into
foreign markets because of the specific organizational characteristics they exhibited in
relation to their particular format features. Formats can result in innovative methods of
foreign market development. The range of FOMs presented in traditional typologies
(Dawson, 1994; Howard, 2004) appears more limited than the ones effectively used by
retailers today, which illustrates a discrepancy between theory and practice in relation
to FOM decisions (Benito et al., 2009, p. 1455). An extended typology of retail FOMs with
their different purposes is presented in Table I.
Retail FOM decisions
Retail FOM choice. When choosing a FOM, international retailers trade-off the
advantages and disadvantages of the different modes; this is a complex decision, with
numerous and conflicting determinants. A group of five factors are recognized as key
determinants (Doherty, 2000; Picot-Coupey, Hutchinson et al., 2007):
(1)
perceived characteristics of the targeted foreign market;
(2)
industry context;
(3)
retail marketing strategy (brand, location, assortment and market coverage

strategy);
(4)
general retailer strategy; and
(5)
retail company characteristics (size, motives for internationalization, relationship

networks).
These determinants influence the final choice of FOM through its dimensions.
Two traditional dimensions are risk and control. In this perspective, a FOM is
a means of minimizing risk through financial commitment management. Further
research suggested four dimensions: dissemination risk of specific assets, control
over strategic and operational decisions, resource commitment, and flexibility (Driscoll
and Paliwoda, 1997). This confirmed the view of Treadgold and Davies (1988) on the
importance of the desired degree of control over the operation, amount of resources
dedicated to the project, and degree of flexibility in retail FOM decisions: thus a FOM
is a means by which retailers manage the international development along a financial
risk control flexibility continuum.
Retail FOM switching and combination strategy. FOMs are still typically presented
as mutually exclusive methods to operating in a foreign market. Yet the internationalization
The pop-up store

as a FOM for
retailers
645
Table I.
Retail foreign operation
modes
Hierarchical modes
Minority stake
participation
Market observation
Direct management of the activity

Sole contact to whom the
responsibility of the retail network
development is given
Support of a local partner
Management contract
Franchising
Direct franchising
Master franchising
Extremely limited commitment as it is

put in charge with a partner
Access to hard or closed markets
Test of the market

A means of retail brand positioning in
its competitive environment
Concession
Contractual modes
Licensing
Store-within-store
Agent
Test of the market

Low cost and low risk entry mode
For Internet, develops direct
relationships with consumers
Test of the market, means of
knowledge of the market
Advantages at the entry stage
Strategy and management

implemented by managers who are
highly aware of the market
characteristics
Close contact between franchisor and

franchisees
Rapid internationalization with limited
investment
Rapid market development
Simple daily management
No commitment in the foreign market
Brand image development, generate

sales in distant or difficult-to-enter
countries, commercial location with
specific consumer targets
Generate sales in distant or less

attractive countries
Generate sales, especially from smaller

locations where it is difficult to
maintain physical stores
Advantages at the expansion stage
(continued)
Limited influence in decision-making
Difficulty in managing numerous

foreign franchisees
Difficulty in managing respective
interests of the master-franchisee and
of the franchisor
Use of the licensing contract outside

the contract framework
Distributor as a barrier between
foreign market and retailer; difficulty
in writing the contract to impose
marketing policy
Cohesion of the retail network must be
ensured
No internationalization of the retail

concept, difficulties in recruiting and
managing the agent
Control over the retail space dependent
on the operation contract of the shopin-shop
No internationalization of the physical

stores
Drawbacks
646
Export modes
Export and wholesaling
International Internet
sales
Foreign operation mode
IJRDM
42,7
Advantages at the entry stage

Resources complementarity; helps to
avoid bureaucratic pitfalls
Provide a minimum size for market
entry, generate immediate cash flows
Showcase and build the brand image
Self-start entry: test the concept,
means of knowledge and adaptation to
the market
Foreign operation mode
Joint-venture
Merger and acquisition
Flagship stores
Traditional companyowned stores
A means of strengthening a market

position, acquisition of commercial
locations
A means to manage retail brand image
(relational marketing)
Control and management of the
concept
Rapid market development, mutual

knowledge
Advantages at the expansion stage
Cost of top locations; cost of the

projects
Significant cost, extensive time period
needed to develop an important
network
Dissemination of knowledge or of
specific assets; difficulty in
communication; risk of conflicts of
interest
Difficulty in managing the operations
Drawbacks
The pop-up store

as a FOM for
retailers
647
Table I.
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648
process is dynamic. The mode chosen in the entry context may not be suitable for the
expansion stage as circumstances and objectives may be different (Fischer et al., 2005).
As such the generic heading entry mode, which is widely used in the academic literature
as a term covering FOM use in all circumstances (e.g. Doherty, 2000, 2007; Park and
Sternquist, 2008), is considered unfortunate (Welch et al., 2007, p. 10). The topic is better
addressed under the heading FOM to consider the dynamic context (Welch et al., 2007;
Benito et al., 2009). The current critical issue in FOM research is mode development over
time, with two strategies: mode shift and mode combination (Canabal and White, 2008;
Welch et al., 2007; Benito et al., 2011). Mode shift involves the switch from one FOM to
another, with the later mode replacing the earlier one. Motives behind the change may be
either difficulties with the present mode or the establishment of new objectives in the
targeted foreign market. Mode combination consists of the addition of one FOM to
another, in the short or long term. Combined modes may be unrelated in order to serve
different businesses in a foreign market, segmented to handle various customer targets in
different ways, complementary to manage different value chain activities or to reach
several objectives, hybrid to monitor goal congruence between the principal and the agent,
or finally, in competition with the use of multiple FOMs to benchmark local operations
(Welch et al., 2007). The degree of coordination and integration of these combined modes
may vary greatly, from complete independence to permanent benchmark operations. Such
a combined use of FOMs has been observed in retailing: the combination of concessions
and company-owned stores (Waldman, 1978), plural forms that associate company-owned
stores and franchised ones (Dant et al., 2008) and multi-modal forms that combine
wholesaling and franchising (Moore and Fernie, 2000; Petersen and Welch, 2000), or
company-owned stores, franchises and shop-in-shops (Moore, 1998; Picot-Coupey, 2006).
Retail FOM dynamics and the stages models of the internationalization process.
These issues of FOM choice and change since the initial entry are connected
to the question of FOM dynamics: in this perspective, research relating to the
internationalization process, and specifically to the stages of internationalization, is
particularly relevant. Following the Uppsala theory that is a dominating view in the
internationalization literature, a company gradually and sequentially increases its
international involvement through a series of commitment decisions based on
management perceptions and experience ( Johanson and Vahlne, 1977, 1990). In terms
of FOM, it means that it evolves over time with greater commitment: initial entry in
a foreign market is typically with a low commitment operation mode and followed by
progressively higher commitment FOMs. In the international retailing literature,
the retail internationalization process is acknowledged as being very broad, including
pre-cursor activity, supporting developments and modifications thanks to on-going
learning processes (Dawson, 1994; Jackson and Sparks, 2005; Jonsson and Foss, 2011).
The Uppsala theory has inspired models of international retail involvement
(Sternquist, 1997; Vida and Fairhurst, 1998; Vida et al., 2000) that received mixed
empirical support (e.g. Vodlan and Vida, 2008). Specific to retailing, Treadgold (1990)
produced a three-stage model of expansion over time through which retail companies
progress as the company attitude toward foreign development changed from reactive
to more pro-active. Initially reluctant (stage 1), they move to caution when engaging
in the early stages of internationalization (stage 2), and then to ambition thanks
to the accumulated experience (stage 3). This incremental perspective of firms
internationalization is challenged by the international new ventures theory (Oviatt and
McDougall, 1997): it examines firms experiencing accelerating internationalization
soon after their inception such as, in international retailing, the fashion retailer Zara
that achieved international growth in the early and development phases of its
internationalization process with high risky FOMs (Bhardwaj et al., 2011). If the
longitudinal dimension of an internationalization process has been an explicit
consideration in retailing since the 2000s (Dawson, 2001), it is still rarely taken into
account in the choice of FOM.
The pop-up store

as a FOM for
retailers
The pop-up store in the literature

The research focusses on the pop-up store as a new FOM. Due to its novelty, no
academic research has been conducted on this subject. In a domestic setting, works on
pop-up stores as a new store format remain very rare. Table II provides an overview of
the relevant studies in this field that can help analyze pop-up stores as a new FOM.
Definition and features of a pop-up store. A pop-up store is a temporary and
short-term retail space that deliberately springs up and then closes rapidly (Kim et al.,
2010; Surchi, 2011). In a domestic context, a pop-up store is presented as a method
of marketing communication (Marciniak and Budnarowska, 2009, p. 4) and an interactive
and relational platform (Russo Spena et al., 2012, p. 34). It is a new experiential marketing
format based on surprise and exclusivity, aimed at engaging consumers (Niehm et al.,
2007), and is developed in synergy with other events and temporary initiatives
(Russo Spena et al., 2012). Historically, one of the main objectives of the Japanese retailer
Comme des Garcons with the guerrilla stores was to challenge retailing conventions, in the
search for radicalism and revolution (Doyle and Moore, 2004). Pop-up stores present a
theatrical nature and are seen as a form of art (Marchetti and Quinz, 2007). Table III
provides an overview of the key features of a pop-up store format in a domestic context.
Location is acknowledged to be a key factor; however, opinions differ about the best
location: invariably strategically located in high traffic shopping areas (Surchi, 2011,
p. 260), in innovative locations (Niehm et al., 2007; Kim et al., 2010), in fashionable
and economically significant cities (Marciniak and Budnarowska, 2009; Russo Spena
et al., 2012) or in radical and little-known places for consumers in the know (Doyle and
649
Authors (date)
Research purpose
Doyle and Moore (2004)
Analysis of the use of the guerrilla store as a method of

international market development, with a case study of
the Japanese retail brand Comme des Garcons
Analysis of consumers psychographic characteristics
affecting beliefs, attitude and patronage intentions
toward pop-up retail
Theoretical study of the use of pop-up stores in relation
with mobile technologies and the Internet
Analysis of American consumers perceptions of and
receptivity to pop-up retail as an experiential marketing
strategy, according to their demographic characteristics
Analysis of the temporary shop phenomenon in Italy
and investigation of its value co-creation potentials
Analysis of consumer attitudes and shopping intentions
toward pop-up fashion stores
Analysis of the reasons behind the choice of pop-up
stores as a marketing tool, in the context of fashion
retailing in Italy
Kim et al. (2010)

Marciniak and
Budnarowska (2009)
Niehm et al. (2007)
Russo Spena et al. (2012)
Ryu (2011)
Surchi (2011)
International
perspective
Yes
No
No
No
No
No
No
Table II.
A synthesis of the
literature on pop-up stores
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Merchandise mix
650
Store location
Table III.
Pop-up store format
in a domestic context:
main characteristics
Store design and

atmosphere
Sale-space size
Price positioning
Promotion
Narrow range compared to the traditional store format

Focused on one product line
Strong in-store atmosphere, architecture and design to create a favorable and
long-lasting experience
Small compared to the permanent retail store format
Premium price in comparison to retailers price structure
Discount price when positioned as a discount or stock clearance store
Four different results
Innovative location
High-traffic shopping location
Fashionable and economically important cities
Radical and little known location
Based on social networking and word-of-mouth
Sources: Doyle and Moore (2004); Kim et al. (2010); Marciniak and Budnarowska (2009); Niehm et al.
(2007); Russo Spena et al. (2012); Surchi (2011)
Moore, 2004). Their promotion is essentially based on word of mouth (Ryu, 2011;
Surchi, 2011). A pop-up store requires modest investment (Surchi, 2011): cost is
controlled and limited resources are invested in the project. Such stores have
communication relevance for the development of long-term relationships beyond
the sole aim of direct profit generation (Doyle and Moore, 2004; Marciniak and
Budnarowska, 2009; Surchi, 2011). Pop-up stores aim to produce demand rather than
generate revenue (Ryu, 2011); they are a sort of synthesis between communication and
selling (Surchi, 2011, p. 260).
Choice motivations for a pop-up store. Very few analyses have been conducted on the
reasons that motivate retailers to choose the pop-up store as a FOM. Marciniak and
Budnarowska (2010) assert that it aims to raise the international profile of a brand in a
new foreign market. Surchi (2011) qualifies it as a method of brand dissemination
across international markets, observing that it is a means to test a new store concept
for retailers.
Additionally, three choice motivations for domestic pop-up stores have been
acknowledged. First, a format based on surprise and exclusivity is a well-suited
response to current consumer expectations. Pop-up stores appeal to consumers for
hedonic reasons linked to the novelty and distinctiveness of the retail concept and
the uniqueness of the experience (Kim et al., 2010). Second, in a context of limited
efficiency of traditional media communication, the store as a media form is of strategic
importance. Pop-up stores are thus a means to create awareness and buzz, with a
promotion plan based on word-of-mouth communication, guerrilla marketing and
social networking techniques (Marciniak and Budnarowska, 2010; Ryu, 2011). They
deliver a consistent and distinctive message and provide an interactive environment
for consumers and retailers alike (Kim et al., 2010). Third, pop-up stores have been
analyzed as a solution to the challenging economic climate facing both landlords
and retail managers. For the former, it is a way to fill vacant space (Mulvihill, 2010)
while the latter can sell off excess warehouse stock or maintain sales with a limited
investment (Surchi, 2011).
The role of the pop-up store in the retail internationalization strategy. The
contribution of pop-up stores to the internationalization strategy of a retailer have
not yet been investigated; the following scare points can be derived from the
research referred to in Table III. On the one hand, a pop-up store could be used as a
decision-making tool, to help make future business decisions relating to the

internationalization strategy and see if opening a permanent store would be interesting
(Surchi, 2011; Ryu, 2011). Thus, a pop-up store could be a means of market selection,
as it could enable the assessment of market potential and appraisal of a foreign
culture. In this perspective, a pop-up store as a FOM could fit into the stages theory of
internationalization, as it could be a first initial step leading to higher future
commitment. On the other hand, the management of a pop-up store may be analyzed in
the multi-channel retailing context. In this case, its role is to increase traffic or to
generate more turn-over in permanent outlets. Then, it could deviate here from the
stages theory as a pop-up store as a FOM could support international expansion and
help companies experience sustained and rapid internationalization without following
any process of incremental resource commitment or moving into more risky FOMs.
Additionally, in the international context, the question arises as to whether pop-up
stores are managed alone or in combination with other FOMs. What benefits can be
gained from the combined use of pop-up stores with other FOMs? If used as a sole
FOM, what roles can it fulfil in the internationalization strategy?
The literature review revealed that research on the pop-up store as a FOM is very
scarce. The present study aims at addressing this gap by applying a qualitative
research methodology to examine the three following research questions (RQs):
RQ1. What are the characteristics of a pop-up store as a FOM?
RQ2. What are the motivations for choosing it?
RQ3. How does the pop up store as a FOM contribute to a retail store networks
internationalization process that is complicated and multi-faceted?
Research methodology
Considering these objectives and the lack of existing research on the pop-up store as a
FOM, a qualitative study was conducted that took the form of a multiple case-study.
The research sought the how (the characteristics) and why (motives for the choice and
contributions to the retail internationalization process) of a pop-up store as a FOM, an
issue for which this methodology is said to be particularly relevant (Yin, 2009, p. 1).
Moreover, case-study research is considered to be suitable in the early stages of
research on a specific topic (Eisenhart, 1989) and the retailers viewpoint of the pop-up
store is virtually inexistent (Niehm et al., 2007). This methodology is also consistent
with recent studies stating that FOM research would benefit greatly from qualitative
approaches in order to tackle the complexity of the phenomenon (Benito et al., 2009;
Canabal and White, 2008). The research methodology was underpinned by the theory
offered in the literature review in two ways: on the one hand, it oriented the cases
chosen in the sample; on the other hand, it gave the grounds for structuring
the interview guide and specifying the constructs identified as relevant in terms of
interview questions and empirical observations.
Case study companies: selection and description
A multiple case-study approach was selected for two reasons. First, this methodology
allows for the observation of patterns and replication among cases (Stake, 2005;
Yin, 2009) two essential factors when carrying out an analysis on the various
approaches adopted in the choice of the pop-up store as a FOM. Second, it is a
The pop-up store

as a FOM for
retailers
651
IJRDM
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652
methodology that is considered to derive more compelling findings (Miles and

Huberman, 1994; Yin, 2009).
Without an official list of retailers operating pop-up stores in foreign markets, the
case-study companies were selected from a database that has been built up by the
author since 2007, based on a systematic review of newspaper articles, internet alerts
and retailer web sites. This list gathers information on pop-up store operations by
either French speciality retailers in any foreign country or by any foreign specialist
retailer in France. In mid-2011, this database comprised 41 retail companies and 56
international pop-up stores. Cases were selected on purposeful sampling, to account for
three criteria considered important in retail FOM decisions as seen above in the
literature review: brand status (established vs small retail brand), FOMs in use (equity,
contractual or exporting modes), and length of international experience (long-term vs
short-term). To cover the range of variation of these criteria, 13 companies were
studied, up to the point where data were returning no new codes and were therefore
saturated. Table IV provides key information on the case-study companies. For reasons
of confidentiality, all retail firms under investigation remain anonymous (and are
referred to as interview A, interview B, etc.). They range from small to major
companies. FOMs vary from purely company-owned networks to those developed via
shop-in-shops. Sectors cover beauty, fashion (ready-to-wear, shoes and sportswear) and
luxury foods.
Data collection
A variety of data collection methods was used: semi-structured interviews, secondary
data (company material, press articles, permanent and temporary internet web sites),
observation of social media (social networking sites
mainly Facebook, blogs and
micro-blogs and content communities), and, when possible, visits to the pop-up store
itself. Multiple data sources and collection techniques were used in order to triangulate
the data: these mixed sources added to the findings as they allowed cross-checking
various viewpoints (Yin, 2009).
Potential key informants were approached via e-mail and telephone to participate in
the research. For each retail company, one semi-structured interview was conducted (in
three cases, two interviews were carried out) with senior managers in charge of the
international development of pop-up stores (marketing director, merchandising
director, international business developer or CEO). The objective was to capture their
experiences and thoughts about pop-up stores, and in particular, the connections they
made between this FOM choice and some determining factors, and subsequently to
contrast these experiences. All of the interviews were conducted in summer and fall
2011 by a senior researcher in one language (French) to ensure consistency and
equivalence in data collection (Sinkovics et al., 2008). The interview guidelines,
previously tested by interviewing a retailer, were structured around four key themes[1]
and potential prompts. Additionally, a field notebook, memos, case summary and
transcription coversheets were used to multiply the evidence sources.
Data analysis
The data analysis procedure was based on the suggestions provided by Huberman and
Miles (1994) and Sinkovics et al. (2008). The 16 interviews were audio-recorded and
retranscribed to meet the desired analytical needs. The starting point of our analysis
was a corpus of 209 pages, combined with the secondary data and the observational
data from social media.
[C]
[D]
[T]
[Z]
[M]
[G]
[B]
[N]
[A]
[O]
Company
name
Established
retail brand
No
Yes
Yes
Yes
No
No
Yes
No
Yes
Yes
Turnover (Mh)
(% foreign
markets) (2009)
Non disclosed (20)
520 (18)
2,200 (80)
440 (50)
140 (60)
Non disclosed (70)
4 (60)
Non disclosed (25)
1,420 (80)
120 (22)
7 company-owned stores
22 franchised stores
10 shop-in-shops
5 shop-in-shops
31 company owned stores
3 franchised stores
1 flagship store
13 shop-in-shops
56 factory outlet stores
Wholesaling
4 franchised stores
89 shop-in-shops
1 flagship store
31 concessions
1 flagship store
16 shop-in-shops
51 concessions
37 shop-in-shops
2 flagship stores
Operation mode
in the domestic market
30
10
19
1980s
2000s
1990s
10
8
1981
5
1998
1990
10
50
1900s
1980s
60
39
1990s
1997
Number of
foreign markets
Start of international
expansion
(continued)
25 flagship stores
38 shop-in-shops
Wholesaling
3 shop-in-shops
13 flagship stores
7 flagship stores
12 shop-in-shops
38 factory outlet stores
30 shop-in-shops
2,700 company-owned stores
5 flagship stores
300 shop-in-shops
9 flagship stores
40 concessions
20 shop-in-shops
Foreign operation
modesa
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as a FOM for
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653
Table IV.
Research sample: retail
companies characteristics
Non disclosed (40)
Non disclosed (50)
[S]
[P]
No
No
Yes
Established
retail brand
Wholesaling
Wholesaling

Operation mode
in the domestic market
1992
1980s
1998
Start of international
expansion
Note: aForeign operation mode used in combination with international online stores except for Q
43,000 (10)
[Q]
Table IV.
Turnover (Mh)
(% foreign
markets) (2009)
70
20
10
Number of
foreign markets
6 flagship stores
59 shop-in-shops
Wholesaling
Wholesaling
Foreign operation
modesa
654
Company
name
IJRDM
42,7
Pattern-matching logic was pursued in case analysis. A conceptualizing content

analysis was carried out both manually and using NVivo9 software, which helped
address validity and rigor issues by facilitating the research analytical process.
Adopting the iterative pattern coding process, the first nine interviews were examined
and coded; the seven final ones were subsequently analyzed and coded using the
residual material method (Mukamurera et al., 2006). The consistency of conclusions
between the initial and final findings was checked. Out of the 13 nodes created, ten had
emerged from the analysis of the nine first interviews and their associated secondary
and observational data. Memos with these secondary and observational data were
linked to their respective node: it allowed analyzing how they underpinned other data
sources and helped derive more complete findings. Since a key aim of the results
interpretation was to identify relations between variables, matrix intersections and
tabulations of events frequency were also developed. Following Stake (2005), excerpts
from verbatim text will be used as illustrative citations to exemplify specific themes.
Findings
Characteristics of the pop-up store as a FOM
The retail companies in this study operated their pop-up stores in foreign markets
for a period lasting between four days to five months, with an average duration of 2.5
months. Retailers highlighted the following key characteristics as distinctive of an
international pop-up store.
Store location
All of the retailers underlined the strategic role of pop-up store location in expressing
its retail brand positioning to foreign consumers unfamiliar with the brand itself.
Location should embody our values (interview B). Various types of location were chosen,
depending on the objective prestigious avenues, pioneering locations, unfamiliar sites
which contradicts previous findings that pop-up stores are invariably strategically
located in high traffic shopping areas (Surchi, 2011, p. 260). Such locations could not
be accessible on a permanent basis. It is possible to take advantage of a premium
location we could not normally afford (interview O).
Store design and atmosphere
In-store design, store exterior design, visual merchandising and store atmosphere were
considered crucial. With the exception of M, all retailers wanted to offer consumers an
immersive experience. This result is consistent with the experiential dimension of the
pop-up store format in a domestic setting (Marciniak and Budnarowska, 2010).
In all, 11 out of 13 retail companies had an architect or a designer for their projects.
The objective was to create a special place to promote our values, our culture, our [y]
our style, using any artistic form (interview P). Creativity is key for giving the store a
strong designer appearance, with the use of antique furniture, movable installations
or rough and ready materials, and for showcasing mobility. This result is consistent
with Marchetti and Quinzs view (2007) of the pop-up store as an art form.
Merchandise mix
Very different product assortments were displayed; their depth and width depended on
the objective of the operation. M presented a seasonal product range in seaside pop-up
stores, while O, P and T displayed their complete product range because their objective
was to switch quickly to permanent stores. In the other cases, a narrow assortment was
The pop-up store

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655
IJRDM
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656
displayed: We presented a selection of our fall-winter 2010 collection of boots to let

Londoners know that they were part of our history and still handcrafted in France
(interview G). Symbolic special edition products were displayed to emphasize a specific
dimension of the retail brand to foreign consumers.
Promotion and events
The pop-up store in itself was unanimously considered to be a communication tool:
The store attracted a lot of media coverage (interview B). Promotions were also
carefully planned to attract stakeholders attention. Temporary web sites, street
marketing campaigns, social media and word-of-mouth were used to showcase pop-up
stores. This result underlines the social networking approach taken by pop-up stores
(Marciniak and Budnarowska, 2010). Retailers described events with artists and
community groups as a means to generate long-lasting memories that transcended the
life-time of the store. We wanted the wow experience with an opening, followed by
events with the artist who inspired the collection (interview D). Pursuing sales
objectives, M also favoured media communication to promote its seasonal pop-up
stores.
Sale space
Selling area ranged from 33 to 570 m2; this appeared to be not so much chosen, but
imposed by the available retail spaces. A, G and Ds pop-up stores were larger than
their permanent stores because these formed their temporary flagship stores. In the
other cases, a modest sale size was sufficient Four days for 250 pairs of shoes: its not
the size of the sale space thats important here [y] its not how big the store is, its what
we can express and who we can reach with it (interview S).
In terms of cost, the one of a pop-up store in a foreign market amounted to a fraction
of that of a permanent company-owned store. Location and sites were absolutely
important to the success our brand in the market. With our pop-up store, we took
advantage of the place without bearing the large costs associated with a permanent
presence of a high street store (interview Z). A, G and D devoted a high budget to their
temporary flagship stores, but underlined that this was a way to optimize the resources
invested in such a project. In all cases, when choosing the pop-up store as a FOM there
was a search for cost efficiency, which is in line with previous findings in a domestic
context (Marciniak and Budnarowska, 2009).
Three choice motivations for the pop-up store as a FOM
Three key motivations for the choice of the pop-up store as a FOM emerged from the
retailers discourse, as exhibited in Table V:
Motivation 1. Testing and adapting the brand and the retailers concept to foreign
consumers who are unfamiliar with.
Both young and established retail brand managers viewed pop-up stores as a
cost-effective FOM to observe a foreign market and to test its potential for their retail
concept. It is a life-size test, a full-scale market study at low cost (interview T);
It provided us with a fantastic test bench for our concept. Demonstrating sales in a
real world setting gave us evidence of our concept viability in that market (interview
C). This FOM helps address key issues in an international context about first, market
attractiveness: We knew that the success of our pop-up store largely depended on the
FOM used in isolation; explorative

internationalization at the entry stage
FOM in combination with branded stores;
supportive role at the expansion stage


Test of a foreign market (observation of

consumer behaviour and needs)
Promotion of brand values (temporary
flagships stores)
Enhancement and promotion of brand

values: exclusivity, rarity
Original and creative

mode to claim a brand positioning with
consumers unfamiliar with this brand
positioning concept
[B]
[N]
(continued)
FOM in combination with branded stores

to speed up and strengthen the expansion
stage
Development of the international retail

network. Immediate profitability of the
store; with a limited budget it is
immediately operational
Opening pop-up store wherever in the

world to assert our brand identity and to
enable its development with shops
immediately operational. We took a
creative approach to visual
merchandising, using fittings and signage
that looked intentionally temporary, so
minimizing cost and time
We were thinking about adding a
location. Opening up a pop-up store there
first might be a great way to observe the
new market, the environment, the culture,
what customers expect, [y] who are the
trend setters and so on
It is a matter of saving money, and
gaining some exposure in high-traffic
locations wherever in the world we could
not offer but with pop-up stores
To treat the brand lovers and to build our
expansion by organizing, during the popup stores, prestigious collaborations that
enforce our image of exclusivity and
rarity [y] so that customers feel they are
privilged persons
It allows us to meet our customers, to [y]
to reveal a potential interest for a client
that does not know the brand
[O]
[A]
Role in the internationalization process
Motivations for the choice
Representative quotes
Firm name
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657
Table V.
The pop-up store as a
foreign operation mode:
choice motivations
and role in the
internationalization
process
[T]
[Z]
[M]
For the very first time we were in the

middle of Causeway bay in Hong Kong
with our pop-up store. It is a perfect
location as a flagship store but impossible
to finance on a long-term basis. We
created an atmosphere that expressed our
brand identity and left a lasting
impression on consumers
It is for us a new route to develop the
network in foreign markets. A long year
presence would be no sens, too expensive.
We just have to be there when customers
are! [y] We remind them of our brand, by
following them
We orchestrate the entry in Riyad, to
open the way to company-owned stores if
the test is conclusive. We can find out very
quickly if it would be fruitful for us to
settle there and this can be done without
taking too much of a risk or spending too
much money
Spotting market opportunities[y] that is
what we wanted to do
It is for Christmas, Easter, Valentines
day [y] all these peak periods
[G]
Table V.
FOM used in combination to generate

extra revenue


FOM used in combination to generate
extra revenue
Seasonal pop-up stores to follow mobile

consumers
Test of foreign market and observation of

countries and cultures
Test of foreign markets
(continued)

to speed up and strength the expansion
stage
Context: objective to increase its presence

in Asian markets while upgrading its
positioning. Used as temporary flagship
store to express its values to consumers
Seasonal pop-up stores to optimize sales
658
Firm name
IJRDM
42,7
[S]
[Q]
[C]
[D]
Firm name

Pre-entry event, prior to entry in the
foreign market

Creation of a very original and luxury sale

space to maintain contact with existing
consumers and to recruit potential ones;
considered as a temporary flagship store
Test of a foreign market for future

opening in a foreign city
Promotion of brand values via littleknown locations
Teasing before the opening of the 1st store
in a foreign market to reach the media, the
connoisseurs and the early adopters
Sustaining brand image (values of
innovation, quality and expression of
Country of origin)
Expressing brand values and promoting

an image that corresponds to the one of
the product
We had an established brand and

opening pop-up shops had been a great
means for increasing brand awareness
and brand loyalty amongst customers. It
supported guerrilla operations in
fashionable locations, as a brand event.
This can be used to target existing
customers
Introducing the first C store in France to
prepare the opening of a classical store
later on if the experience was OK
Locations outside of the prime catchment
areas increase the guerrilla feel to the popup store and attract journalists,
customers, etc.
Launching of Q in France: meet at the
pop up store! Discover the Q products
exclusively, and for the first time in Paris,
in an ephemeral shop
Our aim was to move things along in a
city. Our brand is still young so we have to
get [French people] understand the
Japanese origin, the original and
intentionally funny look, the quality, the
good-value for money
There is a perfect complementarity with
our main stores. The pop-up [stores] are
an event platform that [y] it allows us to
pursue our development in that market.
We created new and unique shop fronts
for expressing our brand, its values
(continued)
The pop-up store

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659
Table V.
P wanted to pursue its international

expansion but faced an obstacle: once the
retail space had been chosen, it had to be
opened as quickly as possible to secure a
return! We had the idea of a temporary
concept. It is Walk In Progress stores
[y]. We create a temporary interactive
design, with recycled furniture and white
walls on which consumers can write about
the future they imagine, to open the store
while waiting for the final design and
merchandising [y]. The idea is as
efficient as it is original because it allows
complete interaction between our
customers and the brand
[P]
Table V.

FOM in isolation at the entry stage to
speed up the entry process so as to
minimize costs
at the expansion stage to speed up and
strengthen the expansion stage

Thanks to store design and atmosphere,
expressing brand values and interacting
with consumers whilst having a store
immediately operational
660
Firm name
IJRDM
42,7
number of customers we can get through the door. Our target is young people. If young
people rush in, we know its won (interview C); second, consumer preferences and
concept adoption: What we have is more of a laboratory situation whereby we can
interact with consumers and learn from their responses about what pleases them
and what does not (interview Z). As a FOM, pop-up stores help address the
standardization adaptation dilemma as they allow testing the essence of the
internationalized retail offer and they participate to the process of creating a distinctive
and acceptable offer. The concept can be tailored to the market, according to consumer
feedback: We had an eclectic product assortment and we noticed that our clients
would also buy bags, which is quite surprising for us (interview A). Their ability to
offer the necessary conditions for the efficient implementation of an international
marketing policy is a key choice factor, confirming results on the determinants of a
retail FOM (Doherty, 2000; Picot-Coupey, 2006):
Motivation 2. Raising and sustaining the international profile of a retail brand.
The international retailers interviewed underlined the importance of shaping
a brands international status and how international pop-up stores helped to achieve
this objective. First, the temporary nature of a pop-up store enabled retailers to access
specific or prestigious, but expensive, locations considered necessary to develop an
international image. Some specific international locations are the place to be at certain
periods of the year (interview T). Second, pop-up stores injected exclusivity and
surprise, thus offering visibility to a retail brand in a new competitive context. Their
theatrical nature generated buzz and brand awareness when expanding into new
markets: It was never meant to be a selling operation but an opportunity to generate a
buzz about our new venture in Germany (interview C). International pop-up stores
serve the purpose of the store as a form of media, with communication being more
relevant than turnover for well-established retailers (Doyle and Moore, 2004; Marciniak
and Budnarowska, 2009). It is also an effective FOM to educate foreign consumers
and potential partners about the retail concept. The misinterpretation of a concept
represents a major risk in an international context (Dupuis and Prime, 1996; Goldman,
2001); pop-up stores could help overcome this by working on various concept
dimensions (history, product assortment, storytelling). It was a valuable learning
ground though capturing their interest and interacting with them. We could deliver a
very consistent, very clear and very distinctive message to European consumers
(interview S). Finally, it is also an appropriate FOM when updating of retail brand
recognition by the target market is needed: The question was how to rejuvenate a tired
brand positioning in this market with energetic outreach? (interview M). These findings
support the view that, when expanding internationally, developing a distinctive retail
brand image is essential (Burt and Carralero-Encinas, 2000); the ability of the pop-up
store as a FOM to help shape this in the mind of the clientele is a strong determinant
in its choice:
Motivation 3. Developing relationship networks with stakeholders in foreign markets.
Choosing a pop-up store as a FOM gives the opportunity to connect with various
stakeholders to the development of the retail brand in a foreign market: consumers,
trendsetters and journalists via immersive experiences, promotion operations, social
media activity and temporary web sites, and local authorities and landlords via the
The pop-up store

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IJRDM
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662
temporary commercial leases. In an international pop-up store, foreign consumers

experience a brand via in-store themed events that help differentiate it from
competition by offering them uniquely enriching experiences. The store went beyond
the products to offer an interactive experience; workshops were hosted to show people
original ways to tie the scarf (interview N). Relationship networks especially foreign
media which is a primary target audience for pop-up stores facilitate access to and
further development in a foreign market. We check where the press offices and offices
of fashion magazines are and we locate our pop-up stores nearby. We need to be as
close as possible [y] So that they notice us, connect with us [y] Their support is
essential to get known in the country (interview A). Pop-up stores were chosen for the
opportunity to connect and interact efficiently with a specific foreign culture. This
result sustains the argument that the relationships networks play a pivotal role in retail
internationalization (Uusitalo and Rokman, 2003; Elg et al., 2008; Picot-Coupey, 2006).
Underlying these three motivations is the fundamental strategic objective to grow
business either by entering a new freign market of expending in existing ones. This
leads to address the issue of the role of the pop-up store as a FOM in the retail
internationalization process.
The role of the pop-up store as a FOM in the retail internationalization process
This research reveals that a dynamic management approach is adopted for pop-up
stores as FOMs: given their temporary character, mode development over time is a
strategic issue for the retail managers interviewed. As analyzed in Table V, the pop-up
store as a FOM plays different roles in the retail internationalization process, that
vary from single mode at the entry stage to mode combination at the further
expansion stages.
A sole FOM to facilitate the early stages in a foreign market. At the early stages in a
foreign market, a pop-up store is a FOM used in isolation. Respondents described it as
appropriate for teasing consumers and influencers at the pre-entry stage of the retail
company in a foreign market. We were arriving with a concept which created a break
with the norm. We wanted to express that we were coming directly from Japan with
something that was terribly new. [y] We hoped to create a group of Q ambassadors
before the launch that was to take place later in 2010 (interview Q). This result supports
the view of the importance of pre-entry activities in the retail internationalization process
( Jackson and Sparks, 2005). At the entry stage, the respondents consider the pop-up
store as a FOM relevant for explorative purposes given its control, flexibility and
resource qualities. We needed a controlled presence to observe, to [y] to get a feel of the
market but clearly we could not afford long-term company-owned stores from scratch
(interview A). The pop-up store appears as a cost-effective FOM, with a high level of
control on marketing decisions but a low level of resource commitment in the foreign
market. Such a case does not fit with the financial risk control continuum along which
FOMs are usually classified (Treadgold and Davies, 1988; Doherty, 2000). It offers new
avenues for the establishment chain suggested by the Uppsala theory ( Johanson and
Vahlne, 1977, 1990), considering that a FOM may not always be a reliable indicator of the
level of commitment. With this FOM, self-start entry is less costly while controlled so
that the critical first-step entry is easier. According to the respondents, the flexibility
dimension of the pop-up store is also a crucial criterion in its choice as a FOM at the
entry stage. Because of its temporary nature, it is either possible to withdraw easily
from a foreign market or to initiate international development. Pop-up stores as FOMs
participate to and inform the fits and starts process ( Jackson and Sparks, 2005):
whether the operation has a high or low success rate, it is a decision-making tool for
future development (interview Z). Thus, it is a FOM that allows learning from the
market, enabling explorative internationalization. This finding confirms the central role
of experiential knowledge and learning to drive the retail internationalization process
( Johanson and Vahlne, 2009; Jonsson and Foss, 2011). It is a means to evaluate the best
suited post-entry mode and strategy to adopt, including a possible retrenchment.
Mode switching can be planned, with no inertia in the shift process. In two cases Z and
P pop-up stores became permanent ones as they were intentionally used as a means to
showcase and speed up future store opening. In this perspective, the pop-up store
as a FOM nurtures a proactive approach to internationalization: the retail firm can
switch more rapidly than planned in the initial model from cautious to ambitious
(Treadgold, 1990).
For small retail companies, the pop-up store as a FOM plays another role at the
entry stage in addition to its explorative support. Respondents from such small
companies stated that this FOM exhibits specific qualities not only to limit resource
commitment but also to reach a rapid return. Rough and ready concepts can be
developed without shocking the consumer and immediate revenue can be generated,
thereby helping finance the future international expansion. With a limited budget,
it is immediately operational and, above all, it catches the clients eye as it stands out in
its environment (interview O). There is an objective of rapid profitability behind the
choice of the pop-up store as a FOM for these small firms, which has not been
observed as such in a domestic context (Ryu, 2011; Surchi, 2011). The pop-up store as a
FOM helps them address time-related issues which are critically important in their
internationalization process (Hutchinson et al., 2007). It only took nine weeks to open,
so we could start obtaining the benefits quickly (interview P). This FOM enhances
their capability to develop internationally: it eases their internationalization process
as retail managers feel more confident in the profitability of the foreign operation,
so switching more rapidly to branded stores: they leapfrog the reluctant stage of
internationalization (Treadgold, 1990).
A combined FOM to support further expansion stages in a foreign market.
Respondents explained that, once entered, they used pop-up stores in combination to
already existing FOMs in order to strengthen overall market expansion. Primary
mode(s) exist(s), with which pop-up store(s) is (are) associated: retail networks are then
made up of company-owned stores in the form of traditional, flagship or pop-up
stores franchised stores and/or shop-in-shops. When analyzing the nature of mode
combinations and their effect on retail companies internationalization at the expansion
stage, the pop-up stores as FOM appear to impact it in two ways: generating revenue
and complementing the marketing action of other FOMs. First, the pop-up store when
added to already existing branded stores brings agility and reactivity to a network
that is otherwise static [y] it is possible to be specifically active over a given period of
time (interview M). With seasonal pop-up stores, a retail network expands efficiently
in a given foreign market. In this perspective, the pop-up store as an additional
FOM generates extra-revenue for the foreign operation, which is a role already
observed to justify mode combination (Benito et al, 2011). Second, another key objective
of combining pop-up stores to other retail FOMs was to make them work in a cohesive
manner. They are meant to complement each other marketing action. In the FOM
package at the expansion stage, the role of the pop-up store is to develop brand
knowledge and loyalty among consumers and to create traffic on online or physical
stores: Its tiny compared to the flagship store, but its meant to whet Parisians
The pop-up store

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664
appetite for the anime-inspired T-shirts which are one of our best-sellers, but less
well-known in France [y] and it should drive traffic to the other outlets (interview Q);
We organize events to strengthen the relationships with our best customers so that
they come back either on the website or to their usual outlet and already have a special
relation with us (interview N). Such a management of combined modes to support
and enhance one another corresponds to what Benito et al. (2011) have typified as
complementary modes. In this perspective, the pop-up store as an additional mode
boosts international expansion cost-effectively. Within the context of the existing
network of stores opportunities of growth can be exploited more effectively. Ambitious
objectives can be achieved in the foreign market. At the same time, pop-up stores as
FOMs help the strategic sequencing of foreign-market entries. A sprinkler approach,
rather than a waterfall one, is made possible: At the same time we had pop-up stores
in China and in London, as our internationalization objectives were high. Clearly it
would not have been possible with permanent company-owned stores (interview G).
The pop-up store as a FOM was a means of speeding up internationalization as it made
simultaneous entries possible. Overall, the mode addition alters the incremental
approach to internationalization as described by the Uppsala theory ( Johanson and
Vahlne, 1977, 1990). There is no clear movement from a lower commitment to a higher
commitment FOM but a series of adjustments, with modes packages among which
the pop-up store meant according to the specific marketing objectives that have to be
achieved in the foreign operation. Such mode packages sustain the more rapid
internationalization path as described by Oviatt and McDougall, 1997).
Discussion and implications
The originality of the study is to address an underdeveloped research area through
the analysis of the retailers assessment of pop-up stores as a FOM. It serves to
move forward knowledge of pop-up stores into an international context by providing
new results into the characteristics and choice motivations for the pop-up store
as a FOM and its role in the retail internationalization process. In doing so, it
also contributes to deepen the understanding of the internationalization path of
retail companies.
According to the research results, a pop-up store acts as a conduit into international
markets with very specific characteristics and purposes and thus differs in several
ways from other retailer FOMs. It is characterized by the merchandising innovativeness,
creativity and unrestricted locations; its success is dependent on how such marketing
innovation provides something different that attracts stakeholder attention in the foreign
market. The retailing mix of a pop-up store can be appraised for each context to make it
directly relevant to the target clientele. Hence, the pop-up store is a new FOM that has the
ability to drive the retailing mix toward flexibility, which is a key success factor for an
international retailer (Goldman, 2001). In retail firms reasoning for the choice of the
pop-up store as a FOM, the marketing factors (innovative location, creativity in store
design, branding) appear influential, confirming their role as a determinant of FOM
choice (Doherty, 2000; Picot-Coupey, 2006; Hutchinson et al., 2007).
Then, the findings indicate that there are three key motivations for the choice of
a pop-up store as a FOM:
(1)
Understanding consumer preferences and testing the market potential, result

that reinforces the findings that pop-up stores are a means to test a new market
(Surchi, 2011; Ryu, 2011).
(2)
Managing efficiently the international brand image, finding that supports the
view that, by creating brand momentum, pop-up stores are an appropriate
mode to disseminate brands internationally (Surchi, 2011).
(3)
Developing relationship networks with the various stakeholders in the

internationalization process, which confirms previous results on the importance
of such relationships in the retail internationalization process and FOM choice
(Bianchi and Ostale, 2006; Elg et al., 2008).
Moreover, in terms of the role of the pop-up store as a FOM in the retail
internationalization process, this study supports previous research on the importance
of FOM dynamics in the internationalization process (Welch et al., 2007). On the one
hand, the findings highlight that it is a cost-effective FOM used in isolation to enter
a new foreign market, dimension to which smaller retail companies are particularly
sensitive. Pop-up stores as entry modes support explorative purposes that are
particularly sensitive in the retail internationalization process ( Jackson and Sparks,
2005; Jonsson and Foss, 2011). So, at the beginning stage of the internationalization
process, they fit into the stages theory ( Johanson and Vahlne, 1977, 1990) as they fuel
a process of incremental resource commitment driven by developing experiential
knowledge. On the other hand, their common use at the expansion stage deviates from
the stages theory: they support international development without any involvement
into more risky modes. At this expansion stage, the findings confirm that revenue
generation and marketing synergies are important consideration when combining
FOMs (Benito et al., 2011). It provides agility to a retail network and helps develop
local solutions in a given foreign market. It is a consistent part of a retail brands
internationalization strategy as long as its roles are clearly defined in combination with
other FOMs. According to the results of the present study, pop-up stores help address
some of the challenges involved in the retail internationalization process in terms of
market study and market selection strategy and market expansion strategy. It is
consistent with the literature on mode combination (Benito et al, 2011) that argues that
such FOM combinations offers scope for improved international market penetration
capacity and more rapid and ambitious internationalization process.
Overall, the choice of the pop-up store as a FOM reflects the relative importance
assigned to the three key dimensions of a FOM, namely resource commitment, control
and flexibility. In this perspective, this confirms the results of previous research
conducted on retail FOM choice (Treadgold and Davies, 1988). However, the research
shows that it is an atypical FOM characterized by low resource commitment high
control high flexibility. Consequently, it is a new FOM for controlled but flexible
growth into international markets that, as such, enlarges the array of FOM choice
for retailers. For these reasons, the pop-up store deserves to be considered as a
distinct FOM.
Our research provides important guidelines for retailers who consider the pop-up
store as a FOM. Above all, finding the right neighborhood or store location is critical to
ensuring the success of a pop-up operation. Once this found, by operating pop-up
stores, retail managers can take advantage of a cost-effective mode to test new foreign
markets with full information control, and to adapt the DNA of the concept in a way
that is perceived as relevant by the target clientele in the foreign market. In addition,
with such an innovative FOM, retailers have opportunities for innovative interior
and exterior store design as well as creative merchandising in order to express
distinctive brand values and offer consumers unique and memorable experiences.
The pop-up store

as a FOM for
retailers
665
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666
An international pop-up store is an excellent conduit to educate customers on all that is

great about a new foreign brand as well as to sustain brand awareness along the life
cycle of the retail company in a given foreign market. In a dynamic perspective, it can
be a good first step for a retailer looking to establish a more permanent and long-term
presence in the foreign market. It can also be a very good means to sustain a retail
brand international status at the expansion stage as it offers visibility and teases
consumers. Retail managers have also to consider pop-up stores as an interesting FOM
because it is an efficient means to nurture a position building process in a foreign
market by initiating and developing network relationships with the various stakeholders
to the development of the retail network in the target market. Considering the importance
of network relationships in the internationalization of retail companies, it is very
valuable. Managerial implications also concern landlords: welcoming pop-up stores from
foreign retailers is a means of attracting new concepts, thus introducing retail diversity
and generating surprise and interest. It is an extremely effective marketing strategy
that brings consumers into traditional spaces that are otherwise vacant or into
non-traditional ones that are less patronized to create an event feel.
Limitations and directions for future research
Results from this research should be interpreted taking into account its inherent
limitations. While the data were collected from different sectors, the study sample only
includes speciality retailers. As mass retailers have notable differences in their
internationalization process (Lowe and Wrigley, 2009), future research is therefore
required to further test the findings of this study in this context. A more general
direction that emerges from the present findings is that future research should
examine the dynamics of FOM choice over time in retailing, especially how and why
retail companies shift from one FOM to another and the different FOMs that are used in
combination. Additional issues warranting further investigation also include
exploration of how and why the concept of international pop-up stores will evolve
over time. Currently, the ephemeral appears increasingly as a structural principle
(Lipovetsky, 1987). A culture of the ephemeral is developing, which leads to a situation
where temporary concepts such as temporary exhibitions in a museum attract more
visitors than the permanent art collections (Decorp, 2008). Such evolutions for store
concepts deserve particular attention. These follow-up works would lead to a deeper
understanding of the pop-up store as a FOM.
Note
1. The 4 key themes were: (1) Most recent international pop-up store; (2) Reasons for the pop-up
store as the correct FOM; (3) The pop-up store and the internationalization process; (4)
Management of an international pop-up store.
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About the author
Dr Karine Picot-Coupey is an Associate Professor of Marketing at the Graduate School of
Management (IGR-IAE) of the University of Rennes 1. She is researcher at the Center for
Research in Economics and Management (CREM UMR CNRS 6211). Her work has been
published in peer-reviewed journals such as Recherche et Applications en Marketing or
International Review of Retail, Distribution and Consumer Research. Current research interests
include retail foreign operation mode strategy, fashion retailer internationalization as well as
innovation in retailing. She is Head of the MSc in International Management at the University of
Rennes 1 Graduate School of Management. Dr Karine Picot-Coupey can be contacted at:
karine.picot@univ-rennes1.fr
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S3-A1-Pop-up Store As A Foreign Operation Mode (FOM) For Retailers

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Pop-up store as a Foreign Operation

Available from: Karine Picot-Coupey

The pop-up store as a foreign

The pop-up store

International Journal of Retail &

perceived characteristics of the targeted foreign market;

retail marketing strategy (brand, location, assortment and market coverage

general retailer strategy; and

retail company characteristics (size, motives for internationalization, relationship

The pop-up store

Direct management of the activity

Support of a local partner

Extremely limited commitment as it is

Access to hard or closed markets

Test of the market

Test of the market

Advantages at the entry stage

Strategy and management

Close contact between franchisor and

Rapid market development

Simple daily management

No commitment in the foreign market

Brand image development, generate

Generate sales in distant or less

Generate sales, especially from smaller

Advantages at the expansion stage

Limited influence in decision-making

Difficulty in managing numerous

Use of the licensing contract outside

No internationalization of the retail

No internationalization of the physical

Foreign operation mode

Advantages at the entry stage

Foreign operation mode

Merger and acquisition

Traditional companyowned stores

A means of strengthening a market

Rapid market development, mutual

Advantages at the expansion stage

Cost of top locations; cost of the

The pop-up store

The pop-up store

The pop-up store in the literature

Doyle and Moore (2004)

Analysis of the use of the guerrilla store as a method of

Kim et al. (2010)

Store design and

Narrow range compared to the traditional store format

decision-making tool, to help make future business decisions relating to the

The pop-up store

methodology that is considered to derive more compelling findings (Miles and

Non disclosed (20)

Non disclosed (70)

Non disclosed (25)

The pop-up store

Non disclosed (40)

Non disclosed (50)

823 company-owned stores

Pattern-matching logic was pursued in case analysis. A conceptualizing content

The pop-up store

displayed: We presented a selection of our fall-winter 2010 collection of boots to let