Pop-up shops: opportunities, risks and legal aspects

What is a pop-up store?

The term ‘pop-up store’ describes a temporary shop that is operated for a limited period of time – sometimes just for a weekend, sometimes for several months. The idea behind it is simple but effective: instead of committing to a space for the long term, you use a location specifically for a particular purpose, season or campaign.

Pop-up stores are set up in vacant retail premises, at markets, in train stations, in shopping centres, in gallery spaces or even in repurposed industrial buildings. In cities such as Zurich, Basel, Geneva and Bern in particular, an active ecosystem has developed around temporary retail space – landlords are increasingly open to short-term rentals because they can make good use of vacant space.

The opportunities: why pop-up stores are so attractive

For tenants, the biggest advantage is obvious: flexibility. You can test a location without committing yourself for years. This is particularly interesting for companies that want to tap into a new market or city without immediately renting a permanent shop.

Added to this is the marketing effect. Pop-up stores attract attention – they are, by definition, temporary, which creates a certain urgency and exclusivity. Customers come because they know that if they arrive too late, they will miss out. This FOMO effect (‘fear of missing out’) is a deliberate communication tool for many brands.

For landlords, temporary leases offer the opportunity to activate vacant space and generate income, at least in the short term. At the same time, they can get to know potential long-term tenants – many successful pop-up concepts lead to a permanent lease.

Pop-up stores also play a positive role from an urban development perspective: they revitalise city centres, fill unused shop windows and ensure a more diverse range of offerings in shopping streets. Municipalities and cities therefore actively promote such concepts in some cases.

The risks: what you should not underestimate

As attractive as the concept sounds, there are real risks you need to be aware of before opening or renting a pop-up store.

High operational costs

A pop-up store has to be set up and taken down again in a short period of time. This means intensive shopfitting management, fast logistics and often considerable set-up costs – for a period that may only last a few weeks. If the operating period is too short to recoup the investment costs, the project can quickly become a financial loss.

Location dependency

The success of a pop-up store depends heavily on its location. High foot traffic is crucial – but it is precisely in such locations that short-term rentals are often more expensive and harder to find. If you end up in a poorly frequented location, you risk not getting the attention you hoped for.

Uncertainty on both sides

For landlords, short-term rentals involve planning uncertainty: the tenant may quickly move out, leaving the space vacant again. In addition, damage to the property can occur when tenants move in and out quickly. Clear contractual arrangements are therefore essential.

Legal aspects: what you need to know in Switzerland

The legal framework is a key issue that many interested parties underestimate. Precisely because the tenancies appear to be short-term and informal, the impression is often created that the details do not need to be taken too seriously. This is a mistake.

The tenancy agreement

Even in the case of a temporary tenancy, the Swiss Code of Obligations (CO) applies in Switzerland. Commercial tenancy agreements are less strictly regulated in the OR than residential tenancy agreements, but still offer protection for both parties. A written agreement is strongly recommended, even for short terms. Among other things, it should clearly regulate the exact rental period, the rent amount, the ancillary costs, the condition of the property upon handover and the return obligations.

For very short tenancies – a few days or weeks, for example – a usage agreement or licence agreement is often used instead of a traditional tenancy agreement. These forms can be designed more flexibly and are sometimes subject to different legal provisions. It is worth seeking legal advice on this matter at an early stage.

Permits and operating requirements

Depending on the municipality and canton, a business licence, a special use permit or at least a registration requirement may be necessary to operate a pop-up store. For example, anyone who wants to operate a temporary store in a public area or pedestrian zone usually needs a permit from the relevant municipality.

The use zone of the property is also relevant: Is the shop designated for commercial use? Is it open to the public? Such questions must be clarified before the lease begins – ideally directly with the landlord and the relevant building authority.

Insurance

Even for short-term operations, insurance is not an optional extra. Business liability insurance is recommended to cover damage to third parties. If you store goods or inventory on site, you should also consider contents insurance. Building insurance is usually the responsibility of the landlord – but here too, if in doubt, clarify in writing who is liable for what.

Tax aspects

Pop-up shops are treated in the same way as any other point of sale for tax purposes. This means that sales must be recorded correctly, VAT must be accounted for (if you are VAT-registered), and the income from the temporary operation must be included in your company accounts. If you are operating your first pop-up store as a trial run, you should also check whether this constitutes a commercial activity that triggers the corresponding registration requirements.

Tips for a successful pop-up implementation

There are a few tried-and-tested approaches to ensure that your pop-up store doesn't just remain a nice concept, but also works in practice. Firstly, define clear goals before you start. Do you want to sell, be visible, gather customer feedback or test a market? The clearer your goal, the better you can tailor the location, duration and budget to it.

Secondly, invest in preparation. A hastily launched pop-up store without a clear concept, without permits and without sufficient staff is doomed to failure. Allow for lead time – not only for setting up, but also for communication. Social media, local media and your existing network are your most important channels for generating attention.

Thirdly, choose the right space. A suitable pop-up space is not just any shop – it fits your brand, has sufficient foot traffic, is easily accessible and offers the basic technical equipment you need (electricity, internet, cash register if necessary). At maison.work, you can find commercial spaces in Switzerland that are also suitable for temporary use.

Conclusion: pop-up stores as a strategic tool

Pop-up stores are not a sure-fire success – but they are a powerful tool when used correctly. They enable flexibility, create visibility and can serve as a springboard for a long-term presence. At the same time, they require careful planning, clear contracts and an understanding of the legal framework in Switzerland.

Whether you are a company planning its first pop-up store or a property owner looking to rent out space on a temporary basis, the key to success lies in preparation and good mutual understanding. And this is exactly where maison.work can help: as a platform that brings commercial spaces and the right users together.

Note: This article is for general information purposes only and does not replace individual legal advice. For specific legal questions, we recommend consulting a specialist.