With many big box stores closing, independent retailers may be in one of the best strategic business positions in a very long time.
Just being big is not necessarily the best strategy as we’ve recently learned in the business of retail. A rash of bankruptcies, near-bankruptcies and generally dismal performances from some of the country’s biggest retail chains has once again confirmed that size alone doesn’t guarantee success.
And while smaller retailers have not been immune to the vagaries of the retail business and have had their fair share of failures, the fact is that independent retailers may be in one of the best strategic positions for their businesses in a very long time.
Which is why when you look down the the road, the highway or the halls of a mall and see that empty space where a Big Boxer used to be you need to better understand what that means for you as an indie retailer. Whether it was a Joann, a Party City, a Big Lots, Rite-Aid or any of the other big chains that have gone away either completely or in part, the opportunities are there for your store.
Maybe opportunity lies in a category you downplayed or stayed away from completely because the big bad national chain took all the oxygen in that space. If Joann was a category killer in fabrics and crafts, can your store pick up some of the slack and expand your offerings in the area? Yes, ongoing stores like Michaels and Hobby Lobby are moving into the Joanne’s void but you can probably move faster and more strategically for what your local customer base is looking for.
Same goes for the party and holiday celebration sector that was the bread and butter of Party City. Again, some big retailers are moving into that classification but if you’ve kept your offerings in party goods to a minimum you might want to look again to see if you have an opportunity to do some more business.
When it comes to Big Lots or Rite-Aid, the pick-up areas might be harder to pin down. You’re not going to start selling big furniture or set up a pharmacy, but there may be individual product categories you could build out a bit.
One more retailer is heavily rumored to be on its way out as it just filed Chapter 11 bankruptcy: At Home. It’s a home goods killer with huge assortments. Much of it was private label but in categories like decorative pillows, rugs and outdoor décor, the possibility exists for huge voids in the marketplace that your store could help fill. You’ll have to see how it plays out, but chances are there’s going to be something there for you to take advantage of.
Then there’s specific brands. Back when Bed Bath & Beyond was in its glory, they dominated so many products that you were smart to stay away from. Hopefully when their stores went belly up you took another look at brands they had carried to see if they were now a good fit for you. Same for the brands carried by this latest wave of retail crashes. The consumer still wants to buy these products, and if you’re now the store that carries them that puts you in a great position.
You might not have ever thought you competed against these giant Big Boxers, but retail is ultimately a zero-sum game and every store competes against every other store. It’s an old cliché but it fits: their loss is your gain.
