July is Independent Retailer Month, which is recognized in various countries throughout the world as a month to celebrate retailers who are commonly recognized as "mom and pop". With big box stores like Hobby Lobby,
A report from the American Express Open Independent Retail Index identified that nearly half of the total retail sales in the U.S. come from independent businesses, validating that independent businesses truly are a valuable piece of the American economy.
As a small independent business owner, I don't try to 'compete' with big box stores. Instead, I offer individualized customer service and unmatched quality that simply can't be found in a big box chain," shares independent retailer Joanne Leiman, who owns a floral retail business, FlowersFlowers, in Evanston, Illinois.
Leiman isn't alone. With more and more independent merchants recognizing that their competition does include big box stores, they need to identify their unique strategies to compete against them. For Astoria, New York based retailer Mackenzi Farquer, that means competing head on with her big box competitors.
The Lockwood Shop in the Astoria neighborhood of Queens, NY offers a variety of gift, home decor,... [+]
My customers shop Target, Ikea, Crate and Barrel and other big box merchants. I know this, which is why I aim to offer products and items they can't find in those stores. Plus, I'm not afraid to have the conversation with my customers on what they may have in their homes from these stores and how the items my store carries can compliment them," Farquer states. Farquer's unique approach has proven successful, with her gift and home decor store, Lockwood, thriving in the Astoria neighborhood of Queens.
Using Technology as a Competitive Weapon
Joining the competition of big box stores with independent retailers are online shops. With eCommerce consistently growing steady, you may think that traditional mom and pop stores have no place in the retail landscape these days. Fortunately, that could not be farther from the truth.
Customers appreciate the opportunity to touch and experience products before making purchases. While consumers love to buy online, this experience is not all they love to do. Convenience comes with a price, and many customers value the improved customer service and product knowledge that independent stores can offer," shares Bill McNulty, Publisher of Independent Retailer Magazine.
Additionally, as technology continues to become more accessible to independent businesses, retailers of all sizes are able to more accurately manage their customer loyalty, inventory sell through, online and offline marketing and more. Among the key strategies in doing this is to use data collected through technology, allowing merchants to better analyze their business and more accurately respond to their strengths and weaknesses.
We see that a lot of the great tools that e-commerce stores use are becoming more common for bricks and mortar, physical storefronts, as well. There are already some very clever providers like our add-on Swarm that allow retailers to track foot traffic and capture really useful data. Technology will allow retailers to know their customers better and look after them better," shares Vaughn Rowsell, Founder and CEO of Vend POS.
Craig Miller, Shopify's Vice President of Marketing and Growth, also believes technology is a key attribute to retail success.
Retail companies have become dependent on technology. From mobile point of sale systems to real-time analytics tools, retailers are more informed than ever before as to who their customers are and what drive sales. This technology is allowing retailers to continue to make a profit despite a challenging retail environment," Miller states. Additionally, Miller adds that he believes "small businesses will re-emerge as a driving force in retail."
Celebrating Independent Retail
As the July 4th holiday approaches and Independent Retailer Month officially takes off, independent retailers nationwide and worldwide should celebrate what's ahead for them - because certainly their future looks bright. As for their future looking easy? That's likely not the case. Retail has always been and will continue to be a competitive environment in which many factors influence the success - or failure - of the businesses involved. Technology can help play a role in the future of independent retailers, but it's up to the consumers to decide on where they want to spend their hard earned dollars. Which makes me wonder... where and when was the last time you shopped an independent retailer?
