Over the last 10/15 years the pressure on independent retailers has increased as the dominance of the supermarkets has expanded. The numbers of independent retailers are at an all time low and those who are surviving are finding profit margins squeezed more than ever.
Now the arrival of a severe economic downturn and un-relenting pressure on the high street, will independent retail survive?
Supermarkets have changed the retailing landscape for ever and the dominance of the big four is greater than ever – 1 in every £3 spent in retail is spent in Tescos. Price wars have eroded profit margins and independent stores just can’t compete with the stack em high, price em low mentality that the grocers are displaying.
Its been a painful trend for the small shopkeeper and it doesn’t look like improving much in the near future, so what can the independent retailer do to survive in this market?
1> Understand your role – What role does your shop play in the consumers routine? Are you mid-week top up? Weekend beers and snacks for a big night in? Tobacco and a paper on the morning walk to work? Find out what the majority of your shoppers use you for and make sure you have the products and the layout to make the most of your consumer demographics.
2> Don’t go toe to toe with the supermarkets – If Somerfield down the road are hammering the price on beer and wine, don’t throw all your profit away by trying to compete head to head on price. Look for a point of difference, range, pack formats, service. Whatever you can make your USP use it.
3> Make the shopping experience a pleasant one – It might sound basic but the number of independent retailers who have dirty shelves, cluttered aisles or a confusing layouts is astounding. Today’s shopper expects high standards, don’t let your shop disappoint, and remember your personality and attention to your shoppers needs will make you stand out from the supermarkets – make the most of it.
