Bill Bittner

Independents Losing Ground

August 16, 2010

FROM RETAILWIRE:
According to an article in USA Today, independent retailers are fairing worse in the recession than larger chains due to a litany of reasons, from buying clout to lack of management smarts. What are the major challenges independents face when going up against chain stores?      [more...]

Looking at this question from strictly a technical perspective, I am expecting a real renaissance for independent retailers.

As technology becomes more "Cloud" oriented, allowing users to plug into service providers as necessary, the advantage large retailers have had by maintaining their own services is disappearing. The challenge for the independent retailer will be making the difficult personnel choices that reduce their payroll expenses.

Especially for family businesses, it is going to be difficult to tell Aunt Sally that her services have been replaced by a computer. While the profits for the remaining workers may remain satisfying, there will no longer be enough margin to support the whole family. Time for second store, but until demand picks up that is not an option.