What’s ahead for small retail business in 2009?
by Paul Bensman
Details In Retail, Inc.
For starters, it’s a great time to be small.
I see you rolling your eyes, but bear with me.
First the bad news…
We’re going to see a rush of bankruptcies in the first few months of the year and retailers get their final holiday sales numbers in.
Layoffs will continue – from the retail sales staff right through to the vendors.
We’re going to see store closings caused by lack of funds, lack of customers, lack of confidence.
Large retail outlets and malls will continue to suffer and empty storefront spaces will continue to multiply.
So how is this good news for the small retailer?
- More localized shopping
High gas prices of 2008 made consumers revise their shopping habits and make a conscious choice to shop where they live and work. Why drive to the mall with all those empty storefronts when there’s a little shop on the corner? Odds are, those new habits will stick for a while. - A change in mindset
With prices falling, service is making a comeback. This is where small retailers have the edge. People aren’t wheeling out cartloads of merchandise anymore. They are making more thoughtful selections and they appreciate an attentive, trained sales staff who can help them make those selections. They also want to make those purchases in a friendly, less stressful, atmosphere. Consumers have become “spend-shy”. It’s not so much fun to shop anymore. Small retailers offer a personal connection that helps people feel good about their purchase. That rapport you’ve built with you customers will pay off. - Businesses Bargains
Yes, retailers will be forced to offer bargains to get customers in the door. But they’re also getting bargains. A few examples: There’s a pool of great talent to choose from – at reduced wages that reflect the high unemployment rates. This gives the business owner a great deal on everything from services to employees. The cost of retail space will continue to fall. Landlords will be more likely to offer flexible terms in order to help their tenants stay in business. Some rent is better than no rent, right? Advertising and marketing are more affordable than ever. One example: for pennies per contact, a well-run email marketing plan will maintain – and expand – your customer base. - Be nimble, be quick!
Small retailers can react more quickly to changing market conditions and make contact with their customers more easily and affordably. This economy calls for quick decisions and fast action. Agility will pay off.
My advice is look ahead, stay positive and make the most of every opportunity. You’ll ride through this recession and be ready to take on the world when things improve.
Ready to have a great year in 2009?
- Find out how Details In Retail can help you stay in the game!
- Business coaching and consulting (FREE Initial Consultation)
- Marketing plans and ad campaigns to fit any budget
- Landlord Negotiation services
- E-mail marketing and other advertising solutions for small business
Visit our web site to learn more or contact info@detailsinretail.com
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