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| August 1997 How will Independent Retailers Survive? By Richard A. Feinberg, Ph.D. Head, Consumer Sciences & Retailing Director, Purdue Retail Institute There are many experts who are willing to announce the end of small retailing. But not me. There are many industry observers willing to declare that the chains will soon muscle out all small retailers. But not me. I will admit that it is tempting to get on the bandwagon . . . and even easy. Chains get some of the best managerial talent. Chains pay more. Chains can charge less. Chains can advertise more. Chains get the best locations. Chains have the resources to bury any independent who has the guts to fight directly. Yet, at the same time, as I travel around the country, I see thriving independents. The mom and pop business, given so little chance of survival, is alive and sometimes thriving in face of big box bullies. It is the speedboat versus the battleship. By virtue of their size and ability to change, the small independent can run rights around the battleship before the battleship can locate them. While the battleships are battling each other by changing less and less and by merchandising the same, the small independent is filling niches - changing on the dime - and getting to know the customers on an individual basis. While the management of the chain has changed ten times as they move up the corporate ladder, the smart independent has kept in contact with its customers. While the customer has gone south, the big battleships are still trying to turn from the north (if they even realize the customer has changed). Independents, those speedy devils, are best prepared to hit the moving customer target. They can test new ideas and react to opportunities. If you are in doubt consider this: remove the company name from the big box stores and you really cannot tell the difference between them. In the name of saving money so they can charge lower prices, the big boxes are so similar in look, content, style, that one suspects that they really are the same store. There is little creativity, flair, or anything interesting. As they battle it out the small independent can do something different and personal. Small retailers can innovate; they can afford to copy. You must, and can, differentiate your content, your style and your behavior. There is a big market out there for everyone. Corporate and mom and pop can hold their own. |
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