It‘s true that pop-up shops are not strictly “new”, but with an estimated 30 stores closing on the high street every day; pop up shops are on the rise. Part of the appeal is their offer of short-term and lower cost sales spaces to retailers. Some say it has revolutionised the relationship between shop owner and tenant as it allows a pop-up sample sale one day and a private party in the same space the next evening.
We spoke to Lyndon Wood, CEO of insurance firm ConstructaQuote on some of the key issues when considering using a pop-up retail space for business.
What are the rent benefits to short-term leasing?
Landlords who have vacancies will be willing to negotiate offers even in prime locations to short term tenants. Finding long term tenant is often a struggle for landlords given the current economic climate; they are now willing to sacrifice tenant longevity in exchange for an immediate short-term tenant. The legal obligation between Landlord and tenant is unique in terms of a short-term lease. A short term lease isn‘t strictly governed by the same legal laws as a standard lease but both need to be equally as thorough. It is important that both parties consider as many protections as necessary.
What are the insurance obligations?
Both Landlords and short term retailers should ensure that that they have the legal standard of liability cover to avoid any unexpected third party damages and financial loss. Legal protections such as liability insurance, business support, professional indemnity and employers‘ liability insurance should also be incorporated in order the legal agreement for additional security for both tenant and landlord.
Is Health and Safety the same?
Health and Safety will be no different in a small pop-up shop to a large commercial building. Before opening your pop-up shop you should carry out a health and safety risk assessment in order to ensure that you are not breaching any safety laws. You should also produce a health and safety policy to apply to your establishment. A good business support policy would provide access to legal documentation and assistance to cater to the legality of your business.