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Interview with Appear Here CEO Ross Bailey | Business Insider

Bailey had the idea for the business while running his own pop-up. He quit school at 16 to move from his home in Buckinghamshire to London and was involved in several entrepreneurial endeavours before running a temporary fashion stall in Soho to coincide with the 2012 London Olympics.

He noticed that people were coming up to him to ask about he’d managed to secure the space — Under Armour even approached him at one point.

“There’s a pricing issue in real estate,” Bailey, now 25, says. “It’s based on 10-year leases. That model doesn’t work anymore. Now we’re seeing rent is a variable cost, not a fixed cost.”

Retail occupancy rates are declining around the world as traditional players grapple with the rise of e-commerce. Shops are closing, sales are down, and fewer people are visiting.

Real estate needs to move more towards a more flexible pricing model, Bailey argues, like Uber’s surge pricing or how hotel prices rise when a conference is in town.

“If you can make 70% of your revenue in December, you shouldn’t be saying the same price for the space in January when there are no sales,” Bailey argues.

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Interview with Appear Here CEO Ross Bailey – Business Insider.