Service, product diversity in local shop important for consumers

Good season for independents vs big box stores, surveys find

Two different surveys conducted late last year show a strong trend among consumers to buy locally from independent retailers, confirming observers' previous findings that American consumers have begun to prefer smaller retail over big box.

The core survey was conducted by the Institute for Local Self-Reliance. It found that holiday sales by independent retailers were up 2.2% over the previous year, even while a U.S. Department of Commerce report showed retail sales over all (including big box stores) were down 0.3% in December and up 1.8% in November.

The reported increase for small retailers was found in a survey of 1,800 independent retailers. Those stores also indicated that their retail sales benefit measurably from "buy local" promotions.

"This survey adds to the growing body of evidence that people are increasingly bypassing big business in favor of local entrepreneurs," said Stacy Mitchell, senior researcher with the Institute for Local Self-Reliance. "Amid the worst downturn in more than 60 years, independent businesses are managing to succeed by emphasizing their community roots and local ownership."

Tim Wiener, chief operating officer for VCP International, said, "Our dealers' stores and shops have reflected this trend as well. Consumers are going where they find a knowledgeable sales person and dependable follow-up service should it be needed. People need to have confidence, and they don't get that from a big box store."

Many small retailers are diversifying the mix of products they offer, giving consumers new reasons to visit their shops more often. In addition, retailers should emphasize the compelling reasons for buying their products and using their services.

"Traditional vac shops are adding the Casabella line of design-driven household cleaning tools," explained Don Russell, chief executive officer of VCP. "When shoppers find unique products in a store, they begin to think of it as more than a place to buy a vacuum cleaner or rent a carpet steamer.

"Another traffic-generating product line is personal and household protection equipment," Russell added. "We help dealers display and explain how pocket-sized pepper sprays, belt-clipped Tasers, and computer-monitored surveillance cameras increase people's sense of security."

Wiener noted that consumer economists are encouraging retailers to remind shoppers why their stores are the first choice.

"The big box stores can't compete with the quality of your products or the value of your service and expertise. Make sure you emphasize how your store promotes personal safety, contributes to the community, and protects the environment. You have the value advantage, which trumps volume discounts," Wiener said.

Look at it this way: The local retailer backs sales with service and long-term support for customers, features that can't be found in a big box store. The Wall Street Journal last month quoted Steve King of the consulting firm Emergent Research, who advised independent retailers to cultivate their product lists with the understanding that the consumer is willing to buy local, but with broader definition.

Russell said VCP's display at the VDTA Show this year emphasizes retailers' opportunities to sell long-term support and service along with unique products that make their store a destination for savvy shoppers.

"The local retailer has a unique advantage in these times. We can use it to gain sales now and build loyalty for later," Russell said. "VCP is proud of the role we play in strengthening the market share for local retailers. Whether they are in urban centers, suburban storefronts or rural communities, we help them maximize profits, make smart choices about product mix, and respond quickly to service needs."

Reprinted from Floor Care Professional, March 2010