Doug Stephens

Consumers Find Reasons Not to Shop Local Stores

July 31, 2009

FROM RETAILWIRE:
Many consumers would really like to support local merchants instead of chains but for a number of reasons, locals prefer chains to local mom & pop establishments. What are the biggest reasons that you think consumers don't patronize local businesses more?      [more...]

Our company deals exclusively with independent retailers, so this is a subject close to our hearts.

Store hours, return policies, selection and price are definitely problematic areas for small retailers. I actually knew one small retailer who closed their store at lunch. That's right...at lunch! When everyone was free to shop them, they closed the store.

In addition to all the points Kim Crow makes, which are true, there are a couple of other reasons for consumers preferring chains.

1. Most specialty retail is un-remarkable: As consumers we live in a world of widest selection, lowest price, ultra- convenient, best quality etc. However, most local retailers aren't the "most" at anything. They aren't remarkable in any way. It sounds harsh but it really goes to the center of the problem.

If a retailer is remarkable, people will shop them. If they're remarkable people will spread the word. If they're remarkable their biggest problem will be managing growth.

So, while the mass or chain store isn't always the best choice, in the face of an often unremarkable selection of local merchants, they become the clear choice. It's not right, it's not good but it's true.

For many, the potential stronghold is service or customer experience. Sadly most are unable to create a significant enough difference in these areas to outweigh other shortcomings. Their service may be very good and their store very nice but neither are slam dunks.

2. Little awareness of the future: When you're working 14 hours a day in your store, keeping in touch with what's happening in the world around you is tough. It's hard to attend conferences and research current trends. As a result, most independents are out of touch with the social, economic and technological trends that are driving retail.

As a consequence they become totally disconnected from the consumers they're trying to serve. When Sunday shopping first began to spread, many independents pointed to it as a fad. They didn't understand the social and economic forces that were driving the change.

3. Ethnic Consumers Prefer Large Stores: Surveys have shown that foreign born consumers in both Canada and the US prefer larger stores. In many cases it's because they are more self-serve in nature, allowing these shoppers to avoid language barriers.

And what about the local retailers who are remarkable and who are in touch with the future? I think the sky's the limit.