6. Small Stores Are Forceful
• 95% of all retailers own
just one store
• Small shops offer more
choices for customers
• Small stores provide
more venues for vendors
• Independent retailers can
change quicker
7. State of the Retail World
• Challenging, but the New
Normal
• Waffling Consumer
Confidence
• Mobile Explosion
• fCommerce
• Price Transparency
• Personalized Marketing
• Customers are in Control
• Experience is Key
In-Store Magazine, RetailNext
8.
9.
10.
11.
12. Plan of Attack
• Determine what
shoppers want and
need
• Give them something
the big guys can’t
• Market and promote
your differences
• DON’T COMPETE
ON PRICE!
13. How To Compete
• Be hands on
• Develop good
customer relations
• Demonstrate your
knowledge
• Teach you staff about
customer service
14.
15. How to Compete
• Know your customers
• Recognize loyalty in
your customers
• Increase customers
• Carry unique
merchandise
16. How to Compete
• Find a niche
• Provide a comfortable
atmosphere
• Brand your store
• Analyze your pricing
and inventory
17. How to Compete
• Don’t compete on
price
• Let people know
about your business
• Enter the battle
committed
“ I’ve been in business for this many years and I’ve done nothing to build loyalty among my customers. I have no faith in my product mix, my services and I have no idea how to compete in any way other than price.” - 15-20% small retailers close every year
This is what many are doing. Recovery much longer than expected. Get complacent, wait it out. Don’t like change.
It’s too expensive. It’s too complicated. We can’t take the chance. We’re doing ok as is. We don’t have the staff. We tried that before. It won’t work in this department. It’s contrary to policy. It will take too long.
Professor of Economics at Iowa State University studied sales tax. Locals benefited from big box spillover. Buy Local push big - Small Business Saturday, 3/50 Project
Be observant, analyze: When are people shopping? Why? What are they buying? What is annoying them? How can you improve that for your store?
Think of independents in your area. Why go to them? What would make you jump ship?
Demographics - raw facts, county development office, surveys Psychographics - family oriented, like sports, faith-minded Lifestyle - busy, stay at home, older
Simply satisfied not enough, delight even more Answer questions, special orders, delivery, policies Press releases, speak, community, newsletters, article Customer service and suggestive selling, how benefit
Why do they come, survey, build profile Analyze data, send personalized marketing Partner with businesses, xmas gifts Private labeling, local artists, own added touch
Unscented candles, organic/gluten free foods, cater to business women
Discounting is like going out of business on the installment plan. Eddy Kay in Thriving in the Shadow of Giants. 1-2 people out of ten shop on price, don’t cater to 10-20 percent.
So what? So what? That’s unique selling point. That’s the benefit. Sell the sizzle not the steak.
