Many big retailers are currently facing a hard time trying to stay relevant and competitive. Walmart which was once king suddenly finds itself chasing after Amazon, and Sears has definitely seen better days. But if these powerhouses and others are having a hard time, what about the little guys?
For a small retailer, which is a little fish, to be able to compete in the prey infested pond where gigantic and vicious behemoths such as Amazon and Walmart swim, they have to understand that they cannot compete with larger retailers when it comes to stock quantity and low pricing.
Big retailers are called that specifically because they have the funds to stock up their inventory in BULK. Because big retailers buy in bulk, they are able to enjoy economy of scale. That is, being able to buy in bulk cheap and thus resell at very low prices. Smaller retailers cannot compete on this level because they lack the financial power and the storage space to buy wholesale at that level.
But there are other levels where small stores can compete and effectively beat big retailers. By implementing the following tips, small retailers can stay away from the ongoing market leadership tussle between big retailers, and win over the hearts of the many customers who are looking for a different type of service.
Because of their sheer size, it’s quite difficult for big retailers to provide customised service to each individual customer. For a small retailer, this is less difficult and can be used to the business’ advantage to win the heart of customers. By giving each visiting customer special attention and service, a small retailer can make the customer feel special and welcome and thus motivate them to come again to experience a warm and cared for shopping experience.
- Provide customers an incentive to walk in and buy
While it might be impossible to lure customers in with the wide variety and low prices that big retailers offer, small retailers can get customers to walk into their stores for different reasons. Free samples, exciting bargains, value added service, or simply warm customer service are just a few temptations that can be used to attract customers. Tailored advertising that targets and appeals to the small retailer’s host community will also be useful.
Instead of offering run of the mill items like what might be found in a big retailer’s store, small retailers can offer better quality, newer, and more innovative products. Big retailers rarely ever stock up on a product that hasn’t been proven to be a big seller, so small retailers can take risks and attract customers with never before seen items that bigger stores are still shying away from.
- An active online presence.
Since a lot of shoppers are online now, it will be prudent for small retailers to maximise their online presence through having an active social media presence, mobile apps, and customer friendly business website where customers receive regular, exciting, and pertinent updates.
Big retailers insure their stores and stock to avoid suffering loss in the event of an accident. This is one aspect of business operations small retailers should emulate if they want to stay competitive and avoid irrecoverable loss.