How About Some Good Retail News?

Let’s be honest: the last few months of news have been nothing short of awful for retailers. From “Retailmageddon” to “Retail Meltdown” the screaming headlines have been as unavoidable as post-Christmas markdowns. I’m not going to pick apart the misplaced blame, the over-simplifications and the hyperbole. Instead, I want to offer words of encouragement backed by data: there has never been a better time to be a brick and mortar retailer, especially an independent store selling lifestyle products such as gifts, fashion accessories, home decor, gourmet, and even books.

Yes, in spite of the overwhelming bad news I strongly contend that there has never been a better time to be in business as a retailer. Here’s why:

1. Brick and mortar stores continue to serve a massive customer base. Despite media hype about e-commerce, approximately 9 out of 10 purchases are still made inside a retail store. I’m not pretending that e-commerce isn’t important (and on a dramatic rise) but it remains a small portion of the overall purchasing dynamic. Furthermore, even as more folks are shopping online they are not diminishing their store visits, according to reports. Bottom line: brick and mortar stores remain the dominant and consistent channel for the vast majority of purchases.
2. There is an increased demand for the unique. Due to a large number of factors, consumers today are increasingly demanding a unique environment, experience and products. Think of the craft beer movement which has more than doubled smaller breweries in four years, the proliferation of boutique hotels, the rise of indie movies and music, or even the popularity of Etsy. The point is that shoppers crave like never before what they probably can’t find at their generic local department store, discount chain, or via Amazon. That preference for the sustainable, artisan, personalized, or one-of-a-kind plays right into the strong suit of independent retail.
3. Retailers offer unmatched community value. Many customers, especially millennials, want to understand and to support a business with transparent values and that is “authentic.” Witness the rise of popularity of organic food in the last twenty years and the current popularity of e-commerce fashion site Everlane, which promises “radical transparency.” Taking a cue from larger companies and start-ups, community retailers are at an amazing advantage to connect with customers and to ring up sales based on shared values.
4. Consumers still want high-touch. Despite the price breaks and shipping convenience of e-commerce, consumers crave the social dimension, the treasure hunt, and the product knowledge associated with a brick and mortar sales experience.
5. Targeted marketing has never been more cost-effective. Gone are the days of depending upon expensive print ads in the local paper as the preferred method of informing buyers. Today, retailers may quickly reach customers via social media and email for a very low investment and with amazing community-building benefits. Yes it is more time-intensive but the ability to reach more customers and the ability to drive traffic quickly with targeted content is outstanding.
6. Access to unique products has never been easier. Travel to any of the wholesale trade events geared toward retailers and you will see a surfeit of traditional best-sellers but also a new emphasis on artisan, custom and/or one-of-a-kind; community artisans may also be found via social media and local events; and visiting other retailer’s websites and social media feeds may reveal amazing new and unique product resources that may be available to independent retailers.

Retailers have a lot of challenges and adjustments to make given the changing shopper habits and tastes. But don’t let the big, bad headlines mislead you: retail remains strong and the opportunity for independent retail is tremendous.