Naked Retail Group, which is a multi-branded pop-up concept with three NY locations (two stores in Nolita and one store at the 11 Howard Hotel). The Naked Retail Group was looking to take advantage of the fact that more brands are looking for ways to get into the brick and mortar space.

Smaller brands, most of them without physical retail experience, can lease some of the footage inside one of these spaces, all in prime New York real estate, for a fraction of the cost.  This is a great opportunity for brands to test the market. Instead of having to pay approximately $40,000 a month, they can get a space for $15,000.

This concept is ideal for luxury brands that are looking to lower the barrier to entry into physical retail. When a luxury brand has just a digital presence it is sometimes difficult for customers to decide on what to purchase. By having the choice of getting space from Naked Retail thy are allowing the customers to test the performance of the products. It helps new brands that can’t afford higher rent prices.

Besides the cost advantage, Naked Retail handles all the details of hiring and training the staff, designing the space, building any fixtures the brand might need and take care of the inventory. The brand can work in collaboration with Naked Retail but they don’t have to worry about the implementation.

Naked Retail Group will then share sales information, amount of customers that enter the store and any other feedback that the brand will need in order to grow.

Another great thing is that a customer may come to look in the space for one brand and discover a brand new one there. This is a big draw for lesser-known brands. It can also help a brand find out what types of shoppers are interacting with the brand and interested in the products.

I love this concept because you never know what hidden gems you will find next. It also helps keep the brick and mortar store concept alive. I know it is easier to shop on-line, but at times I miss the brick and mortar experience. This brings it back in a fun and exciting way.