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Nespresso pop-up Boutiques signal new retail strategy in Australia

 

Three new Nespresso pop-up Boutiques which opened in May are signalling the latest retail strategy in Australia to connect with Club Members and test potential permanent locations.

In Australia, Nespresso is testing potential permanent locations and reaching out to new and existing customers with an agile boutique concept. This May, it launched its first-ever Pop Up Boutiques at three locations in Sydney.

“We are always looking for new ways to connect with our Club Members and grow our business sustainably. We see this approach as the next step in our retail strategy,” said Loïc Réthoré, Market Director Oceania for Nespresso. This latest innovation to strengthen its retail presence in the country follows the opening of the flagship boutique in Melbourne last year and the addition of Self-Selection rooms in Sydney in 2013.

This is not the first time Nespresso has used pop-ups in Australia. In 2013, temporary “coffee havens” appeared in Sydney and Melbourne to coincide with the “Coffee Moments” campaign – Nespresso’s first dedicated Australian ad campaign. These coffee havens won the Gold Stevie® Award in the Live Event Category, for Best Exhibition Display, Stand or Feature earlier this year.

The new pop-up Boutiques are the first in Australia to be based on the Nespresso “boutique” format. A concept by the International Retail Development team, they have previously been successfully implemented in markets including Spain, Norway, Portugal, Canada, and the United Arab Emirates. They are only a fraction – around 10% – of the size of a standard Nespresso boutique.

A key design feature is the iconic Nespresso Grand Cru Wall. Coffee specialists are on hand to engage with customers and drive sales, providing coffee tastings and guidance on the full range of Grand Crus and select machines on offer.

“Our boutiques are primarily located in capital city centres. By expanding our footprint through the pop-up Boutiques, we will be able to bring that experience to more people. We see it as a way to build Club Member loyalty, which has been critical to Nespresso’s success in recent years,” Loïc Réthoré said.

In addition to improving Club Member accessibility, the three pop-up Boutiques also provide a capsule recycling collection point for existing customers. These add to the 124 existing recycling points in the country at Nespresso boutiques, and, as of 2014, TerraCycle recycling points around the country.

The Sydney pop-up Boutiques are located until late 2015 in shopping centres at Westfield, Miranda and Castle Towers in Castle Hill, as well as Sydney’s Domestic T2 Airport. The three sites were selected based on factors such as the presence of other premium retailers and customer traffic in the centres. If they prove popular, additional pop-up Boutiques in other locations may be opened in the future. Elsewhere in Sydney, the permanent boutique in Chatswood will undergo renovations and re-open in August.

“We receive great feedback from Nespresso Club Members regarding their boutique experiences, however, we wanted a more innovative retail format that would help us test the demand in retail locations where we didn’t have a presence until now. If they prove popular, we will consider opening pop-up Boutiques in other locations in the future,” noted Loïc Réthoré.

The three pop-up Boutiques join Nespresso’s 12 permanent boutiques and a thriving e-commerce store in Australia. Since Nespresso first entered the market in 1997, it has grown to include three permanent boutiques including two flagships both in Sydney and Melbourne, two apiece in Brisbane and Perth, and one in Canberra and Adelaide.

     

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