Chanel benefits from Olympic footfall by joining the pop-up trend
Flash retailing, or pop-up stores, is a trend of opening short-term sales spaces that has become popular in Canada, the United States, the United Kingdom and Australia.
Last week, Cosmetics Design showcased how some of the biggest cosmetic players had utilised the games with various marketing strategies, whilst Chanel went down a different route, opening its first UK pop-up store in time for the Olympics.
It opened in the Covent Garden area on the main piazza on July 24, 2012, just in time to benefit from the increased footfall in London driven by the Olympics, stocking the full range of Chanel beauty products and featuring a first-of-its-kind nail bar.
The beauty brand says the store is planned to stay open for seven months, ensuring that it cashes in on both the Olympics and the Christmas period, with plans to launch exclusive new products, hold educational workshops, and provide consultations with make-up experts.
Dependent on performance
The minimalistic store joins only three other Chanel stores in London and senior analyst at Verdict Research Carly Syme, believes it is a good way of boosting sales in the capital without losing its exclusivity element.
“Though it only plans to open for seven months, we expect the retailer to look for a more permanent location in the area if it performs well over the period,” she comments.
The Verdict expert explains that while other sectors such as homewares and DIY have struggled during the economic downturn, beauty has remained one of the most resilient sectors, which bodes well for Chanel.
“Relatively low selling prices have meant that consumers have treated themselves in this sector when they cannot afford to buy more expensive items such as clothing or homewares.”
“Innovation in the market has also kept customers buying – particularly new products such as anti-ageing creams, as concerns over looking younger for longer continue to increase,” she adds.
With this in mind, combined with a large amount of tourists who are attracted to luxury brands such as Chanel, it is highly expected, that following the Olympic success, the pop-up store will perform well in its time at Covent Garden.
