Retail Observer

RETAILOBSERVER.COM JULY 2017 48 I n recent years, an alarming trend has beset retail behemoths such as hhgregg, Sears, K-Mart, Macy's and JCPenney. The decisive shift toward online purchasing has drastically cut foot traffic in the once venerable department stores. The e-commerce juggernaut that is Amazon and other online powerhouses such as Wal-Mart and Target now dominate much of the retail landscape, slashing the revenues of traditional brick-and-mortar stores, which were once the primary destinations for consumers across America. This devastating shift away from buying items in-store has left a seemingly endless spate of workforce layoffs and store closures in its wake. The once thriving retail chains are now downsizing in a desperate attempt to acclimate to the new sales environment. However, amid this cataclysmic reversal of fortune are unique opportunities for the independent retailer. In order to take advantage of the declining fortunes of industry stalwarts unprepared for the rise of e-commerce, independent retailers must enact a comprehensive effort to win market share by employing aggressive marketing and advertising strategies coupled with a focus on more creative methods of customer service. In order to capitalize on the financial woes of its reeling competitors, independent retailers would be wise to enact aggressive digital advertising and marketing campaigns to lure in customers left behind amid the glut of big box store closings. Since an ever-growing number of customers now do their product research online, independents must have a ubiquitous online presence to compete. This reality can be capitalized on by independents through a shift toward attracting a majority of their business through major online endeavors such as digital video advertising. Adherence to old-fashioned marketing and advertising strategies must be phased out in favor of more modern methods. Obsolete methods of advertising such as the use of newspaper and magazine ads are indicative of business owners who are unwilling to acknowledge that the industry has changed. Efforts to cling to past practices are detrimental to their company's bottom line and a sure way to waste valuable advertising funds. Independent retailers must follow up new advertising and marketing schemes with a concentrated effort to elevate customer service to new levels by emphasizing convenience, loyalty, and hospitality. In her article, "15 Essential Strategies for Independent Retailers", Kimberly Weusil, editor-at-large at Inc.com, is encour- aging about the plight of the independent. She writes, "Retail experts are surprisingly upbeat about the prospects for small stores, finding many ways that clever merchants can capitalize on the unique advantages that come with a brick-and mortar presence." She discusses several methods that independents could employ to poach customers from their larger competitors. Frequently changing inventory, offering rewards for referrals, making store layouts easier, putting up attractive window displays, making stores pet friendly, and checking out customers using a tablet instead of an antiquated cash register are some of the services that Weusil pushes for. These combined efforts reveal just how many strategies are available to independent retailers in their perpetual battle with the larger chains. Considering the recent rumblings in the retail landscape, there is no better time than now to unveil these new devices in a bid to take advantage of new opportunities. The dependable revenue generated by larger retail stores now seems a relic of the past. The harsh realities of the new retail landscape reflect an industry turned on its ear. Gone are the days where plodding department store chains could command significant market share due to sheer size. As more of these operations close down, enterprising independent retailers may well fill the void that has been created as Amazon and Wal-Mart compete for supremacy over e-commerce. Through a flurry of increased digital marketing and merchandising as well as a new program of customer service plans, independent retailers could emerge as the true victors in the new sales environment. Amid these unique opportunities to seize market share from aging retail giants, policies of hesitancy or complacency carry enormous risks. Only through taking the initiative while employing new advertising and marketing methods can independent retailers hope to compete in this ever-changing environment. John White Appliance Trends John White, EVP of Major Appliances and CMO at BrandSource RO RETAIL GIANTS' WOES PRESENT OPPORTUNITIES FOR INDEPENDENTS

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