I took a couple of minutes to check my
Twitter feed this morning and found a tweet from Doug Stephens, president of
Retail Prophet Consulting, directing me to his latest blog for
Retailwire.com. In the entry he responds to a question about why so many consumers prefer chain stores to local shops. In reply, he points out that “store hours, return policies, selection and price are definitely problematic areas for small retailers.” He then adds three more reasons he thinks consumers opt for chain retailers.
1. Most specialty retail is un-remarkable: As consumers we live in a world of widest selection, lowest price, ultra- convenient, best quality etc. However, most local retailers aren't the "most" at anything. They aren't remarkable in any way. It sounds harsh but it really goes to the center of the problem….So, while the mass or chain store isn't always the best choice, in the face of an often unremarkable selection of local merchants, they become the clear choice. It's not right, it's not good but it's true... For many, the potential stronghold is service or customer experience. Sadly most are unable to create a significant enough difference in these areas to outweigh other shortcomings. Their service may be very good and their store very nice but neither are slam dunks.
2. Little awareness of the future: When you're working 14 hours a day in your store, keeping in touch with what's happening in the world around you is tough. It's hard to attend conferences and research current trends. As a result, most independents are out of touch with the social, economic and technological trends that are driving retail. As a consequence they become totally disconnected from the consumers they're trying to serve. When Sunday shopping first began to spread, many independents pointed to it as a fad. They didn't understand the social and economic forces that were driving the change.
3. Ethnic Consumers Prefer Large Stores: Surveys have shown that foreign born consumers in both Canada and the US prefer larger stores. In many cases it's because they are more self-serve in nature, allowing these shoppers to avoid language barriers.
Do you agree or disagree with Stephens? Is your store “unremarkable”? Are you “disconnected”? I think his points are valid and, the first two in particular, can be applied to any business including publishing. Fortunately, we’re heading into the fall show season and we will have the opportunity to find some remarkable products (and story ideas), and learn more about the “social, economic and technological trends driving retail” via the excellent seminars being offered at the fairs.
NOTE: I didn't link directly to the blog because access is blocked until you sign up for RetailWire, which I do recommend. It's informative and it's free!
