Stop, Pop, and Profit

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

A killer trend that gained attention last year will continue its growth momentum as the holidays approach. A host of consumer-facing companies are planning interesting -- and occasionally bizarre -- pop-up shops for the holidays.

Imagine, for example, an entire pop-up shop dedicated solely to Kellogg's (NYSE: K  ) famed toaster pastry, called Pop-Tarts World. This vitamin-fortified outlet recently sprung up in New York City's Times Square to cater to shoppers' toaster-pastry-related needs.

Last year, stores like Target (NYSE: TGT  ) set up pop-up shops -- small, temporary retail experiments. These insta-storefronts are well-suited for the holiday season, when companies seek quick, easy ways to peddle their goods to gift-conscious consumers.

According to USA TODAY, this holiday season's entrants into the pop-up frenzy include Harry & David, which will open "orchards;" Disney (NYSE: DIS  ) , which will open Tron-centric stores to capitalize off the release of the sequel to its 1980s cult classic; and Claire's, which has opened a few pop-ups related to the popular TV show Glee, which airs on News Corp.'s (NYSE: NWS  ) Fox.

The fleeting nature of pop-up shops helps to grab shoppers' attention. A small store that wasn't here yesterday, and it won't be here tomorrow, generates a sense of urgency and excitement. It's also smart to capitalize off of current crazes that probably won't be sustainable over the long term, like the Tron- and Glee-inspired pop-ups aim to do.

Small and nimble stores may be smarter moves in particular markets, such as congested cities. Retail behemoth Wal-Mart (NYSE: WMT  ) has discussed plans to open smaller stores, which is not exactly in keeping with its usual massive, plodding scale.  

Most fascinating of all, many pop-up shops tend to operate profitably for the short amount of time they're open. That's sure to make consumer-facing companies salivate, and worry companies not fast or flexible enough to capitalize on pop-ups of their own.

In these austere times, companies that cater directly to consumers have their work cut out for them. Staid, slow-moving retailers will likely have a hard time generating excitement from reluctant consumers. If these retailers can't somehow pop on the scene with an attention-grabbing bang, the pivotal -- and hyper-competitive -- holiday shopping season might turn out less than cheerful.

Walt Disney and Wal-Mart are Motley Fool Inside Value selections. Walt Disney is a Motley Fool Stock Advisor pick. Kellogg is a Motley Fool Income Investor selection. Try any of our Foolish newsletter services free for 30 days.

Alyce Lomax does not own shares of any of the companies mentioned. The Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1349009, ~/Articles/ArticleHandler.aspx, 10/22/2016 8:12:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
DIS $93.03 Up +1.00 +1.09%
Walt Disney CAPS Rating: *****
K $74.34 Up +0.11 +0.15%
Kellogg's CAPS Rating: ****
TGT $68.23 Up +0.52 +0.77%
Target CAPS Rating: ***
WMT $68.34 Down -0.39 -0.57%
Wal-Mart Stores CAPS Rating: ***