Transcript Competing with Big Box Stores.ppt

Competing with Big Box
Stores
Article by Shari Waters
Presentation by Kati McCoy,
Sarah Casavan & Janelle Powell
Tips for Retail Competition
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Independent retail business owners worry about
competing with large retailers
Studies show people purchase a higher % of goods
from larger retailers than from local merchants
Many small retailers continue to thrive (and profit) in
a highly competitive marketplace
Hasty Freez
Burger King
Tips, con’t
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The key to survival is to offer products and
services that your competition does not
Strategies must be implemented to overcome
the lower prices and wider selection that the
larger retailers provide.
Jean’s Health
and Happiness
Don’t Panic
We can be our own worst enemy
 When you hear a big company is coming,
don’t automatically think you have to close
or relocate
 Recognize that you may need to make a
positive change to the way you do
business
 Assess whether or not you have the desire
to make the changes
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Do the Research
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Seek Advice from your trade association
or consider hiring an industry consultant
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Conduct a formal study of what customers
value most and least about your business
Understand your store’s competitive edge
Do the Research, con’t
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Don’t be afraid to shop your competition
The best way to be educated about the way
your competition does business is by
experiencing it first hand
 Talk to their customers, find out what they like
and dislike about the store.
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Dare to be Different
Mass Merchandisers generally have a little
of everything, whereas smaller specialty
stores can focus on a narrow but lucrative
niche
 Examples:
The Party Store
Scrapbooking Stores
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Dare to be Different, con’t
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Establish your store as the place to go
when buying these items
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If your niche is very small, consider keeping a
few products and services that appeal to a
wider range of customers but have
exceptional product depth
Focus on what makes your business
unique
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Emphasize the originality of your inventory
Dare to be Different, con’t
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Customers are intrigued by the unusual and are
often attracted to the idea of getting something
special from an independently owned merchant.
Smaller retailers also have the luxury of creating a
comfortable atmosphere, giving their retail space a
special personality, which is often lacking at larger
stores
Boccherini’s Coffee
and Tea House
The Power of Pricing
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Be open to a little haggling where price is concerned
 Bargain shoppers know the independent retailer
has the power to negotiate a sale and customers
are more inclined to shop there
 It’s all about customer perception
Using Loss Leaders (goods offered at steep
discounts in order to attract new customers to a
store ) can also help
Personal Attention
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Treat each customer like your BEST
customer
You can concentrate on small details
 Superb customer service is the biggest asset
to the independent business
 People shop where they feel comfortable and
cared about
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This is the least expensive change
Staffing Your Store
To keep your employees from defecting to
the competition, treat them fairly
 Motivate your staff & pay attention to their
needs
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Staffing your Store, con’t
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Help them become proficient in their
respective departments and make sure
they’re readily available to meet customer
needs
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Will give customers an extra incentive for
doing business with you
Conclusion
These tips can help level the playing field
 Exceptional customer service or unique
products will NOT win out over low prices
every time
 As shopping choices change, so should
our thinking
 To succeed, you must lead or at least keep
pace with the change
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Article Link
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http://retail.about.com/od/competition/a/big
_box_stores.htm