Netflix opened a pop-up store in time for the holiday season. As the streaming platform explores a push into merchandising, its competitors are not sitting still. What are the three ways Netflix can improve its retail revenue generation moving forward?
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Inside The Netflix Pop Up Store
Opened on October 17, 2022, Netflix at The Grove brings an immersive experience through a pop-up concept store. Located inside Los Angeles’ famous outdoor shopping center, The Grove, the store spans over two stories and 10,000 square feet of space. It has three main components: 1. Merchandise, 2. Art, and 3. Social Media Moments.
Merchandise
The pop-up store includes merchandise from hit shows such as Stranger Things, Bridgerton, and Squid Game. It will have some of the most sought-after items like the “Hellfire Club raglan shirt and Palace Arcade hoodie, the soon-to-be-released Inside Bridgerton book from series creator Shonda Rhimes, an assortment of Funko collectible figures from Squid Game and Stranger Things and a curated series of products from some of the most beloved children’s properties seen on Netflix including the iconic dollhouse, new apparel line and Gabby Girl Doll from Gabby’s Dollhouse, and kids activity books from the beloved Ada Twist, Scientist and Cocomelon.”
Popular hit shows such as Stranger Things, Bridgerton, and Squid Game will be represented. The pop-up store will have some of the most sought-after items like the “Hellfire Club raglan shirt and Palace Arcade hoodie, the soon-to-be-released Inside Bridgerton book from series creator Shonda Rhimes, an assortment of Funko collectible figures from Squid Game and Stranger Things and a curated series of products from some of the most beloved children’s properties seen on Netflix including the iconic dollhouse, new apparel line and Gabby Girl Doll from Gabby’s Dollhouse, and kids activity books from the beloved Ada Twist, Scientist and Cocomelon.”

“Following the incredible success and excitement from our fans for our immersive experiences around the globe, this felt like the most organic next step to continue our growth and bring Netflix’s most beloved shows together in a completely new way,” said Greg Lombardo, Head of Live Experiences, Netflix. “Celebrating our fans and giving them the opportunity to put themselves in the world of the stories they love is at the heart of what we do, and we’re thrilled to bring this experience to life at The Grove.”
Art
In October and November, the store will feature life-size versions of notable Netflix characters, including Vecna from Stranger Things, the iconic Young-Hee doll from Squid Game, Queen Charlotte’s throne, and more.

Social Media Moments
As part of the holiday activation, the pop-up store’s second floor will transform with new immersive elements from upcoming Netflix holiday shows. Visitors will get access to immersive and social-media-ready moments! Titles being featured will include Guillermo del Toro’s Pinocchio, Slumberland, Enola Holmes, The School for Good and Evil, Matilda, and Emily in Paris. Holiday fares will include Falling for Christmas, Christmas with You, The Noel Diary, The Great British Baking Show: Holidays, and more!

Competition – Netflix Is Not Alone
This is Netflix’s biggest launch into the pop-up store concept. However, the streaming platform is not alone in offering retail merchandising.
- NBC has a permanent store in New York City studio that features products from its streaming platform, Peacock, and online.
- Disney+ has permanent stores at its Disneyland and Disneyworld theme parks worldwide, onboard Disney Cruise ships, at Disney-themed hotels, and online.
- HBO MAX subscribers can get official merchandise through its online store.
- Apple TV+ viewers have to work harder to find official items on Etsy, Amazon, and Ubisoft.
Many of its loyal viewers may not know that Netflix also has an online store that features items from shows and movies like The Queen’s Gambit, The Witcher, Cobra Kai, and more.
While it is easy for Netflix and other streamers to plan and manufacture merchandise for popular series, unreleased intellectual properties can carry more risks. As such, production companies, streaming platforms, and marketing/promotion teams need to determine the “hit-ability” rating (e.g., audience test screenings, artificial intelligence tools, content creators’ unprompted amplification, and social media connection, etc.) for new shows or movies, in advance. This rating will predict merchandise demand with higher accuracy and allow more lead time to manufacture products for future hit series like The Watcher and Dahmer – Monster: The Jeff Dahmer Story.
Retail Opportunities For Netflix
In its latest quarterly report, Netflix mentioned that it will transition to revenue over subscriber counts as its primary top-line metric. A new ad-support tier may bring in new subscribers and generate new advertising revenue starting in November.
On the retail front, there are three opportunities for the streaming platform to generate more revenue. They include:
- Open permanent store locations around the world curated with local and international merchandise. This will create year-round opportunities to promote popular shows. Additionally, the streamer can collect data on audience anticipation for future properties. Viewers should be notified of new store openings based on their geographical location.
- Currently, viewers are not given any indication inside the Netflix user interface that there is merchandise from shows or movies they are watching. The less they know, the fewer opportunities for them to buy items. The streamer can fix this by 1. incorporating online store elements into the application, and 2. adding an interactive component inside a show’s page, and transferring audiences to the online store.
- Music can play an integral part in a hit show. Stranger Things Season 4 – effectively brought Kate Bush’s Running Up The Hill back into the spotlight. Record companies should work with the streamer more closely on music placement and promotion. For example, the platform can work with the music publication, Billboard Magazine, on including music play data in the charts. It can also add space on a show’s homepage to showcase songs featured. Similar to music, any intellectual property based on a book, poetry, or other written publication could be highlighted.
The first and third options are harder to implement as many moving pieces are not in Netflix’s control. The second option, however, can be easier to produce a proof-of-concept and be implemented.
Netflix at the Grove is the platform’s latest shopping experience that expands into art and immersive activities. The store will remain open through the holiday season to December 31, 2022. Are there other franchises or titles (e.g., Heartstopper, Love Is Blind, Bling Empire) that you would want to see in the next pop-up store? There are numerous opportunities for the streamer to expand its revenue base with its vast intellectual properties. Maybe it is time for the streamer to open permanent stores worldwide.
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