Pop-up stores redefine where brands connect with shoppers
In June, a buzzed atmosphere of energy and anticipation surrounded a temporary pop-up in Barcelona. Shoppers queued at the Portal de l’Àngel as Shein launched a three-day, in-person storefront. The model proved so successful that a year later the brand opened a permanent Barcelona location. Like digital-native platforms such as Wallapop, Zalando, and AliExpress, pop-ups serve as short-term trials to spark interest, test collections, or validate demand. Luxury houses too, including Dior and Chanel, have embraced these immersive formats to offer customers memorable experiences while showcasing their latest lines.
Temporary retail spaces have grown into a multibillion-dollar market, with annual revenue trending into the hundreds of billions globally. Recent industry forecasts place the worldwide value of this format at well over 95 billion dollars by 2025. While Spain-specific data remains sparse, there is clear momentum across the national market. Industry executive Carolina Argente, who runs the Go Pop-Up platform that connects brands with flexible spaces and marketing services, notes a notable uptick in interest compared with the previous year. She explains that major brands now come to the table not only to rent space but also to contract advertising and experiential services, signaling a shift toward fully integrated pop-up campaigns.
Madrid and Barcelona have emerged as the nation’s nerve centers for temporary retail, drawing significant attention from brands seeking high-footfall locations. The north and coastal areas, including Valencia, also attract activity, though price varies by region. For example, a 103-square-meter multiplex in Marbella might command around 460 euros per day, a 100-square-meter space on Passeig de Gracia in Barcelona could fetch about 3,450 euros daily, and a 949-square-meter event venue nearby might carry a daily rate near 460 euros. The fourth floor of Madrid’s Palacio de la Prensa on Gran Vía can command roughly 4,427.50 euros per day. Although success isn’t guaranteed, many brands find value in revisiting the format after positive experiences.
Contact with customers
What value does a two-day physical presence offer to a digitally driven business model? Argente highlights the primary reason as creating a tangible face for the brand and establishing direct consumer connections that build trust. Some smaller companies have shifted away from brick-and-m Mortar models due to costs, instead using pop-ups to keep their brands visible and memorable for shoppers who mostly browse online.
The approach isn’t limited to smaller players. Retail innovators have used pop-ups as strategic experiments. For instance, Zalando staged a temporary shop in Madrid, and Wallapop hosted a pop-up in Madrid’s Salamanca district in early November 2022, described by the firm as a temporary social experiment aimed at keeping consumer attention on the sustainability and quality of second-hand goods relative to new items. These experiments show how short-term spaces can reinforce brand narratives and product storytelling.
Another tactic is to test demand before committing to a permanent storefront. Brands align pop-ups with key dates—holiday campaigns, Fashion Week, or summer markets—to maximize impact. AliExpress, for example, leveraged Singles Day in November to open a temporary shop for the weekend and gauge consumer response for future expansions.
Luxury experiences
Luxury labels have elevated pop-ups into theatrical showcases. Colorful beach-inspired looks from Loewe in Ibiza or a white-and-gold interior adorned with oversized floral motifs by Dior on a stylish Madrid street are emblematic of this trend. Competing houses like Louis Vuitton, Lacoste, and Chanel have also embraced temporary spaces as a way to create exclusive moments that reinforce brand prestige. Luxury insights indicate that pop-ups captured a substantial share of global luxury trade in 2022, with around 68% of sales situated in temporary formats compared to 28% in permanent shops. Spanish market indicators suggest that temporary stores will contribute to continued growth in the luxury segment through 2023, even as concrete data for Spain remains limited. Annual industry sentiment from leaders in the field points to a visible, travel-enabled demand for branded experiences across multiple destinations.
Industry voices emphasize the experiential nature of these formats, noting how pop-ups allow brands to showcase capsule collections in targeted locales like Ibiza or Marbella or to highlight several label lines in a tightly curated setting. A notable example this year was a Marbella beach club residential complex customized by Fendi, offering a summer capsule collection in a setting that aligns perfectly with a brand’s broader narrative. Brand managers describe these builds as deliberate disruptions that deliver unforgettable experiences while keeping marketing expenditures within the brand’s overall budget.
As brands weigh the cost of pop-ups against potential long-term gains, many see these setups as part of an integrated marketing strategy rather than a standalone tactic. The combination of experiential design, strategic location, and limited-time availability can generate heightened brand recall, social chatter, and engagement that extend beyond the life of the event. Market observers anticipate continued expansion of the format as retailers and luxury houses seek to stay visible in a crowded, digitally driven marketplace. A well-executed temporary space is no longer a mere promotional stunt; it has become a core element of brand storytelling and consumer relationship-building. [Source: industry reports and executive interviews, including Capital One Shopping, Go Pop-Up, and Luxuryinsight, as cited in market analyses.]