Regulating pop-up stores: Paris plots to control temporary leases during fashion week

With Men's Fashion Week approaching, Parisian storefronts are being transformed into pop-up stores for a few days. While some are excited to discover these temporary shops, the City of Paris is condemning an “Airbnb-isation” of commercial leases. 

Airbnb-isation of commercial leases

From January 21 to 24, fashion brand Gertrude will open an “immersive pop-up” designed as an “artistic laboratory”. The venue is located at 5 rue des Haudriettes in the Marais. It is one of many spaces rented for a short period during Paris Men's Fashion Week, a phenomenon the City of Paris has been fighting against for several months.

Speaking to FashionUnited, Nicolas Bonnet Oulaldj, deputy mayor of Paris for commerce, explains that the proliferation of pop-up stores leads to higher rents and refers to an “Airbnb-isation” of commercial leases. 

The identity of the fashion players opening these types of spaces is also being called into question. “This is not necessarily a phenomenon that allows young designers to establish themselves,” explains Oulaldj. “We are increasingly seeing large groups such as H&M, Shein, and others contributing to this 'ephemeralisation' of Parisian retail. This is unpleasant for other businesses that have to bear an increase in commercial rents. It is also difficult for residents who lack permanent shops, particularly local ones.”

To combat this phenomenon, the City of Paris can pre-empt premises through its property company, Paris Commerce. This gives it control over the choice of project that will occupy the space, which is generally food shops, repair services, and so on. For example, a resolution passed last December by the Paris Council concerned the sale of two pre-empted premises on rue Vertbois (3rd arrondissement) to Paris Commerces. The aim is to establish permanent artisans and local shops there.

Oulaldj told FashionUnited that pre-emptions will continue and be expanded in the event of sales in certain areas. He specified that the role of Foncière Paris Commerces as a regulatory tool will be strengthened. The city will also work with the arrondissements to better regulate these temporary occupations when they disrupt the commercial balance and the peace of residents.

For the time being, the municipality's efforts do not seem to have disrupted the business of rental agencies. Nama Paris is a company specialising in the rental of temporary retail spaces in the Haut Marais. When questioned by FashionUnited, the company stated that the actions taken by the City of Paris have not affected the market's momentum. The number of spaces rented for pop-ups opening during Men's Fashion Week is stable, if not increasing.

However, it is important to remember that the City does not object to temporary formats in principle, but rather to their misuse. For these pop-ups to continue to thrive, Oulaldj explains that a compromise is possible “provided that clear rules are established”. These rules include: transparency on leases and rental conditions, which are often very opaque today; respect for public peace; the integration of pop-ups into a neighbourhood strategy rather than a speculative logic disconnected from residents' needs; and a commitment not to exclude independent businesses through excessive rents.

“The Marais is not a backdrop or a showroom, it is a living neighbourhood”

According to some active players in the temporary rental market, local shops have not really existed in the Marais for a long time. They claim pop-up stores are not the reason for their disappearance.

For Oulaldj, however, this reasoning is not valid: “To say that local shops would have disappeared 'anyway' is to give up on any public policy. We are doing the exact opposite. We are taking a proactive approach to break this cycle and restore the place of accessible, independent, and useful shops for residents. It is a clear political choice: the Marais is not a backdrop or a showroom, it is a living neighbourhood, and we want it to remain so.”