|
Small Retailers: Prepare
For Change
Owners of small retail businesses had better
brace for change. Short-term and long-range
trends indicate that consumers are quickly
altering the retail landscape.
BIGresearch in Worthington, Ohio, says that
retailers should beware in the short-term. The
company reports that half of consumers surveyed
said they've become more practical and realistic
during the last six months. More than ever,
consumers are focusing on needs over wants. That
means retailers will need to initiate deep
discounts and special promotions to entice
shoppers into their stores.
Retail Forward, a market research firm, projects
that several long-term trends will impact the
face of retailing in the remaining years of this
decade. Two areas will especially take aim at
small retailers:
-
Consumers will search for
greater shopping efficiency, so the trend will
be toward patronizing supercenters. Retail
Forward forecasts supercenter sales to nearly
triple by 2010.
-
At the same time, consumers
want retailers to personalize their shopping
experience with products and services. They
not only want more robust product choices, but
also more personal attention.
"We will see a new
customer-driven business model by 2010, built
around greater customer intimacy -- when every
touch point becomes a moment of truth and
customer relationships become the key
competitive assets of the business," says Tom
Rubel, president of Retail Forward.
What You Can Do
If you believe the
trends will come true, then opportunities exist
for small retailers to entice shoppers and build
relationships with consumers. Here's how:
-
Focus on niche markets. By selling
to a niche market, your retail shop can offer a
greater mix of products geared specifically to
that market. That gives consumers within the
niche more product choices.
-
Improve customer service. Giant
supercenters will never be able to match
personal service your small business can offer.
Use that to give yourself the competitive
advantage. For ideas about improving customer
service, check out the free Success Skills
Seminar "Extreme
Customer Service".
-
Specialize. Give consumers
products and services they can't buy from the
supercenters. Clear some generic items off your
shelves and make space for the hard-to-find
stuff. Then market those specialty items to
customers.
-
Generate buzz. Make your shop the
hot spot in town, the place everyone is talking
about. For pointers, check out Edgar Falk's book
1001 Ideas to Create Retail Excitement
(Prentice Hall Press, 2003). In the revised
edition of this book, Falk gives special
attention to small retailers, including lots of
examples and tips.
|
