About the author: Phil Petrone
Phil Petrone, with over three decades of experience, stands at the helm of Shop Fitters Melbourne, innovating in commercial fit-outs and construction, and driving the growth of its associate, Melbourne Constructions.
Choosing Between Pop-Up Stores and Permanent Retail Fit Outs: Which is Better?
- Reading time: 7 minutes and 20 seconds
I’ve spent years working as a shop fitter here in Melbourne, helping retail businesses create unique spaces that bring their brands to life. In that time, I’ve seen countless retailers grapple with a big decision: Should they start with a pop-up store or dive right into a permanent retail fit out? It’s a tough choice, especially when you’re trying to balance costs, brand impact, and future growth. But the right decision really comes down to your long-term business goals.
I remember a project a few years back—a small and hip clothing store that initially tested the waters with a pop-up in a bustling Melbourne market. It was a smart move for them at the time. They wanted to test their product range and gauge customer interest without committing to a long-term lease. However, when their pop-up quickly gained traction, they faced a new challenge: should they continue with pop-ups or invest in a permanent fit out to build a stable, lasting brand presence? That’s where our shop fitting expertise came in.
Table of Contents
What makes a pop-up store unique?
Pop-up stores are like the “speed dating” version of retail. They’re quick to set up, flexible, and perfect for short-term engagements. The lower initial investment and temporary nature mean they’re ideal for testing new products, jumping on seasonal trends, or creating a buzz around a brand launch.
But there’s a downside too. While they can generate a lot of excitement, they often struggle to build long-term customer relationships. There’s only so much you can do with temporary fixtures and limited customisation. Imagine trying to create a memorable brand experience when your store’s layout is restricted by the limitations of a temporary lease. After all, when the lease ends, your store disappears along with any physical customer connections you’ve made.
What sets permanent retail fit outs apart?
In contrast, having a permanent retail space—part of the growing “bricks and clicks” strategy—is crucial for businesses aiming to blend online success with a solid physical presence. Even before 2020, e-commerce was gaining momentum, but the pandemic sent it into overdrive, with AusPost reporting a staggering 41% year-over-year growth in online purchases that year. While many small businesses have embraced the “clicks” component, setting up the “bricks” part can be more daunting, especially with economic pressures like Australia’s 7.8% inflation rate in December 2022.
One of our favourite projects was for a local skincare brand. They started with a pop-up, but once they moved into a permanent space, we helped them design a shop that reflected their natural ethos and commitment to sustainability. It made a huge difference in how customers perceived them, turning their shop into a destination.
Pros and Cons: What to Expect with a Fit Out and Pop-Up
This section is here to help you decide between the benefits and challenges of pop-up stores and permanent retail fitouts. Over the years, we’ve learned that the best choice depends on your business goals and where you are in your growth journey. Pop-ups are great for generating buzz or testing new concepts, but for a lasting presence, a permanent fit out is often the way to go. For example, we worked with a small Melbourne-based coffee brand that spent its early years running pop-up coffee carts. They saw decent sales but found it hard to build a loyal customer base. Once they committed to a permanent location, they noticed their regulars appreciated having a familiar spot, leading to more repeat visits and a stronger sense of community.
To help you decide which option suits your needs, here’s a quick comparison of the key differences between pop-up stores and permanent retail fit outs:
| Feature | Pop-Up Store | Permanent Retail Fit Out |
| Cost | Lower upfront costs; ideal for tight budgets | Higher initial investment, but offers greater long-term ROI |
| Setup Time | Quick setup (usually 1-2 weeks) | Longer setup (3-6 months, depending on customisation) |
| Flexibility | High flexibility for relocations and seasonal trends | Less flexibility due to fixed layouts and permanent fixtures |
| Brand Impact | Short-term impact, ideal for generating buzz | Strong, long-term brand presence and customer engagement |
| Return on Investment | Lower ROI, driven by quick sales cycles | Higher ROI due to a consistent customer base and steady growth |
| Customer Loyalty | Difficult to build long-term relationships | Easier to create loyalty and repeat customers |
This table should give you a clearer idea of which option aligns best with your business strategy. Remember, though, that while pop-ups might seem like a quick win, permanent fit outs lay a stronger foundation for growth.
Cost Considerations: What’s the smart financial move?
When it comes to deciding between a pop-up and a permanent retail fit out, cost is always a big factor. We’ve worked with retailers who started with pop-ups because they’re more affordable—typically between $5,000 and $20,000 depending on the location and lease terms. This makes them great for testing out new ideas or products without making a huge commitment. Take one of our past clients, a gourmet food brand that used pop-ups to showcase their delicious artisanal jams. They set up shop at local farmers’ markets and received some positive feedback, but by the time they ran their third pop-up, they realised they were spending more on set-up costs and still weren’t building the consistent brand visibility they needed.
That’s where permanent fit outs really shine. Yes, they require a bigger upfront investment—often starting at around $60,000—but the benefits can be well worth it. You’re creating a space that reflects your brand and gives customers a reliable spot to come back to. One of our fashion clients here in Melbourne made the switch, and the results were amazing: foot traffic doubled and their average sales per customer shot up by 20%. It’s clear that, while a pop-up is a great starting point, a permanent space can help take your business to the next level.
When Pop-Up Stores Make Sense: Best Use Cases
We know that sometimes a full-scale fit out isn’t the right move—especially when you’re just starting or testing new ideas. That’s where pop-ups can really shine! If your goal is to create excitement, test a new market, or run a seasonal promotion, a pop-up might be your perfect solution. Here are a few situations where a pop-up makes more sense than a permanent store:
- Want to see if there’s demand before committing? Pop-ups are a fantastic way to see what works without the long-term commitment.
- Pop-ups are made for holidays and special events! They’re perfect for short-term sales pushes like Christmas, Easter, or even pop-up sales during local festivals.
- Don’t want to break the bank? With lower setup costs, pop-ups allow you to get your brand out there without a massive upfront investment.
In my experience, a pop-up is like dipping your toes in the water before diving in. It’s the perfect way to test the waters, see what clicks, and get real feedback—all without the pressure of a long-term commitment.
Why Permanent Fit Outs are Worth Investing On
If you’re serious about growing your brand and creating a lasting impact, a permanent fit out is the investment you need to make. Pop-ups have their place, but they can only get you so far. With a permanent space, you can shape a store that feels uniquely yours—one that keeps customers coming back. I remember a local shoe brand we worked with. They’d done the pop-up circuit for ages but struggled to build a solid following. Once they took the leap and committed to a permanent shop, we went all out. We incorporated custom shelving, sustainable décor, and lighting that showcased their products in the best way possible. The reaction was immediate: customers felt the difference, and the store quickly became a local favourite. It was a beautiful reminder that when you invest in creating a space that’s truly yours, the results are always worth it.
Which Option Should You Choose?
So, what’s the right fit for your business—a pop-up or a permanent retail space? It all comes down to what you want to achieve. Pop-ups are brilliant for creating short-term excitement and testing new ideas, while a permanent fit out is the way to go for long-term brand loyalty and stability.
At Shop Fitters Melbourne, we’ve guided businesses through both paths. Whether you’re looking to dip your toes in with a pop-up or go all-in on a permanent space, we’re here to make it happen. Let’s discuss your goals and build a space that brings your vision to life!
Retail Fitouts FAQ
In Melbourne, the cost of a retail fit out can range from $1,200 to $3,500 per square metre, depending on factors such as the retail space size, design complexity, and material quality. Due to council regulations and premium finishes, high-demand areas like the CBD and Docklands may experience higher costs. At Shop Fitters Melbourne, we pride ourselves on delivering bespoke fit-outs that cater to your specific needs and budget, ensuring your store is both visually appealing and functional.
Yes, it can. Staged fit outs are perfect for businesses that want to spread costs over time while remaining operational. With our flexible approach, we can help you focus on key customer-facing areas first and build out the rest as your budget allows. Our team at Shop Fitters Melbourne will work closely with you to plan each stage, ensuring a smooth and seamless experience.
Choosing a professional fit out means working with experts who understand Melbourne’s diverse architecture and stringent council regulations. At Shop Fitters Melbourne, we combine technical expertise with creative design to deliver fit outs that reflect your brand and stand up to heavy daily use. DIY might be tempting, but for a polished finish that complies with safety standards and makes a statement, trust the professionals.
