Walmart shoppers could start seeing a new variety of retail options pop up in stores thanks to a new partnership that allows small businesses to rent retail space.
“We are excited to partner with Walmart to bring new brands to local communities while providing small business owners the ability to thrive with some great built-in foot traffic,” said Scott Blair, the co-founder, and CEO of Popable, a pop-up marketplace platform.
Blair said the Walmart-Popable partnership is in part aimed at helping small businesses still struggling from COVID-19 pandemic-related issues.
According to a paper published in the Proceedings of the National Academy of Sciences of the United States of America during summer 2020, small businesses employ almost 50% of American workers. Researchers found that 43% of businesses they surveyed were temporarily closed and that employment had fallen by 40%.
“This represents a shock to America’s small firms that has little parallel since the Great Depression of the 1930s,” said the paper. “Our results suggest that many of these firms had little cash on hand toward the beginning of the pandemic, which means that they will either have to dramatically cut expenses, take on additional debt, or declare bankruptcy.”
By the following summer, the Bureau of Labor Statistics estimated that 6.2 million people were unable to work because their employer closed or lost business during the pandemic.
As of this April, Small Business Pulse survey results from the U.S. Census Bureau found that nearly 44% of respondents were still experiencing negative effects from the COVID-19 pandemic and more than 21.5% were still experiencing a large negative effect.
Through the new Walmart-Popable program announced Monday, business owners will have the opportunity to rent out pop-up space in designated Walmart stores. They won’t have to commit to a long-term lease, and agreements can last for as little as one month to as long as one year – or grow to a longer-term agreement. Business owners will also be able to promote on Popable’s website.
“For retailers emerging from a challenging year in the face of post-COVID impacts ranging from rising economic concerns to delivery issues at the ports, pop-up retail could be a great way to move excess inventory,” said Blair.
This agreement also comes just in time for the holiday season, when shoppers are out purchasing gifts and party supplies.
“Supporting small businesses has always been a priority for Walmart. We are proud to work with Popable to offer local brands an opportunity to grow inside our stores,” said the senior director of Retail services for Walmart, Darryl Spinks. “This is a great example of our focus on offering services unique to the neighborhoods we serve through our store of the community initiative.”
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