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Pop up shops have been around for many years, and in 2025 they continue to be a dynamic way for businesses to engage customers face‐to‐face. Even with the rise of online retail, temporary physical stores allow brands to create memorable, tangible experiences without the long‐term commitment of a permanent location.
Business owners can reach customers directly by setting up a short-term store in high-traffic areas, pop-up markets or even shopping centres, without the need to commit to a fixed property over an extended period. This flexible retail model is especially popular among innovators and start-ups – and if you’re looking for guidance on how to get your business legally sound from the start, our Business Setup Guides can help.
A pop up store is a temporary retail outlet that gives customers the chance to experience your products in a live setting. Many online businesses use this medium to boost brand visibility and create buzz, offering a real-world complement to their digital presence.
In this article, we’ll explore pop up stores in the modern retail landscape and outline what you need to set one up successfully in 2025.
What Is A Pop Up Store?
A pop up store is a temporary retail outlet that operates for a limited period. In today’s fast-paced market, these stores allow businesses to interact with customers directly, test new locations before committing to a permanent site, and create a sense of exclusivity around their products. This concept continues to evolve in 2025, with many brands incorporating innovative digital elements to enhance the in-person experience.
| Example Jenny sells homemade jams online, and to increase brand awareness, she rents a space for a pop up store at her local farmers market. During her time there, she not only displays her jams but also offers free samples, allowing people to see, smell, and taste her products before purchasing them. This temporary presence helps Jenny test the market and build a loyal customer base. |
Why Do People Set Up Pop Up Stores?
There are many advantages to setting up a pop up store, particularly for eCommerce business owners looking to extend their market reach. Not only do pop up shops provide a platform for face-to-face interaction, they offer a cost-effective way to test new markets without the overheads of a permanent storefront.
Of course, as with any business venture, there are potential drawbacks. It’s important to weigh the benefits against the challenges – such as limited space, short operational periods, and the critical importance of choosing the right location – to decide if a pop up store is the right move for your business.
| Pros | Cons |
| Customers experience your products tangibly. | The temporary nature might deter repeat purchases, especially for consumable goods. |
| It allows you to test a physical location before a long-term commitment. | A poor location choice can result in low foot traffic and wasted resources. |
| Boosts brand awareness and acts as an effective marketing tool. | Limited space can restrict inventory and additional activities. |
Is It A Temporary Business?
A pop up store is not a temporary business in itself; rather, it’s a short-term extension of an ongoing, full-time enterprise. Most established brands use pop up shops to complement their existing operations, while some seasonal or event-based sellers may operate as temporary businesses. Regardless, all the usual licences, permissions, and registrations apply.
If your aim is to test a market or sell products occasionally, you still need to comply with standard business requirements to ensure legal protection and smooth operations. See our Legal Requirements for Starting a Business guide for more information.
How Do I Set Up A Pop Up Store?
Even though a pop up store is temporary, it requires careful planning and attention to detail to ensure success. In 2025, you should consider a range of factors, including:
- Conducting thorough market research and setting a realistic budget.
- Selecting a prime location with high visibility.
- Deciding on the type of venue—whether it’s a mobile truck, gallery space, mall stall, or event kiosk.
- Secure the necessary contracts and rental agreements.
- Designing the store layout and decor to reflect your brand.
- Developing a targeted marketing strategy to spread the word.
Are Pop Up Shops Worth It?
The value of a pop up shop depends on your individual business circumstances. For many, these temporary outlets serve as a fantastic marketing tool to generate buzz and test new products or locations. In 2025, some businesses are even integrating augmented reality and digital enhancements into their pop ups to further engage customers.
Before committing, carefully consider your goals, finances, and the demographics of your target market. A strategic approach that leverages both offline and online channels can significantly boost your brand’s presence.
Do I Need A Lease For Pop Up Stores?
In accordance with the Retail Lease Act 1994 (NSW), if your lease is for less than six months, you are not required to have a traditional rental contract. However, it is highly recommended to secure a short-term rental agreement in writing regardless of the duration. This protects both parties and ensures clarity in your legal obligations.
Without a formal lease agreement, the usual protections afforded by standard rental contracts may not apply, leaving you more vulnerable should disputes arise.
Therefore, it is essential to sign a written agreement with a landlord who is willing to provide one or consider alternative spaces that offer more accommodation for your legal and business needs.
How Does Liability Work?
Liability refers to your legal responsibility for any incidents or damages that may occur. When running even a temporary physical store, you are accountable for issues such as injuries or property damage. It’s important to clearly delineate responsibility within any rental agreement.
For example, if a customer is injured due to a hazardous condition, your lease and insurance policies should specify which party is liable. Drafting a short-term rental agreement that outlines these points can help prevent disputes and ensure that you don’t end up burdened with costs due to another party’s negligence. You might also want to explore our contract review services to ensure all liabilities are clearly stated.
What Should I Include In My Lease Agreement?
Your Lease Agreement should clearly state that the contract is for a short-term arrangement, specify the exact duration, and detail the rent amount, payment method, and space specifications.
In addition, include clauses on:
- The rent amount and payment arrangements
- The specific location and boundaries of the space
- Termination conditions and notice periods
- Dispute resolution procedures and liability allocation
- Amenities, utilities, and any associated bills
- Operating hours and any noise restrictions
- The intended use of the rental space
What Should I Know About Zoning Laws?
Zoning laws determine what types of business activities can take place in specific areas. Not all regions permit commercial use, so it’s vital to review the Local Environmental Plan to ensure that the location you have in mind allows a pop up shop. In some residential areas, you may need extra permission to operate commercially.
For detailed information on zoning and planning laws, you can also refer to your local council’s website or seek advice from legal experts specialised in property law.
What Else Should I Consider?
Setting up a pop up store involves many decisions that can affect its success. Beyond the basics, you should also consider elements such as digital trends and evolving consumer expectations. It’s an exciting time in 2025, with many businesses integrating technology into their retail experiences. For example, ensuring your brand’s intellectual property is protected is key – check out our trade mark registration services.
Location
As mentioned earlier, your store’s location will be a major factor in its overall success. Ensure you research your target market thoroughly – for instance, a store aimed at younger consumers should be located where they frequently visit. Consider factors such as:
- Accessibility for all, including features like wheelchair access
- Peak hours and times of day notable for high foot traffic
- The quality of traffic – you want passers-by who are likely to pause and explore
- Alignment between the event’s audience (if event-based) and your product offering
Agreements
Securing the right agreements is crucial for protecting your business while you operate a pop up store. In addition to rental contracts, you may need to consider other legal documents such as Supply Agreements or Employment Contracts if you’re engaging staff or vendors. Having these agreements in place minimizes the risk of disputes and ensures all parties understand their responsibilities – a key consideration highlighted in our Employment Contract resources.
Insurance
Operating from a physical space introduces risks that are different from running an online business. It is essential to look into adequate insurance coverage, such as public and product liability insurance, to safeguard against unforeseen incidents. In today’s regulatory environment, keeping your policies up to date is non-negotiable.
Licence
Besides securing rental agreements, you might also need specific licences to operate your pop up shop. This includes a licence to occupy or a casual mall licence if you’re setting up in a shopping precinct. The exact requirements will vary by location, so it’s important to confirm with local authorities.
Once again, a properly drafted short-term rental agreement—not to mention the correct licences—is essential for protecting your business interests. Don’t hesitate to contact us for assistance.
How Can I Promote My Pop Up Store?
Marketing is critical when launching a pop up store. In 2025, digital and traditional media continue to play a synergistic role in attracting customers. Setting aside a dedicated marketing budget and planning your promotional strategy well in advance is essential.
Utilise the temporary and exclusive nature of your pop up store to generate excitement – emphasise the limited-time offer to create urgency. To boost your promotional efforts, consider:
- Sending out targeted emails to your customer mailing list
- Featuring the event on your website along with a dedicated landing page
- Pushing regular updates via social media channels
- Investing in local advertising, such as media ads or billboards
- Distributing flyers – while being mindful of local litter and junk mail regulations
Whatever approach you choose, ensure that the dates, exact location, and any other crucial details are communicated clearly and consistently.
Key Takeaways
Setting up a pop up store can be hugely advantageous if executed with proper planning and legal oversight. Key points to remember include:
- A pop up store is a temporary, physical storefront that supplements your full-time business.
- Having a short-term lease agreement in place that clearly outlines terms and liabilities is essential.
- Ensure you have all necessary legal documents and agreements secured ahead of time.
- The location of your store significantly affects your market reach and compliance with zoning laws.
- Always weigh the benefits against potential drawbacks before committing to a pop up store model.
- Effective marketing, both digital and traditional, is vital to drawing in customers.
As retail trends continue to evolve in 2025, keeping your legal documents, licences, and insurance policies up to date is critical. Our team at Sprintlaw can assist you with reviewing and updating your agreements to ensure your pop up store is compliant and well-protected.
If you would like a consultation on setting up a pop up store, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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