There are plenty of stories claiming we are experiencing a retail apocalypse. What ever it is, whatever the reason for so many retail closures, I see opportunities for indie small business retailers to shine. Here’s what I mean…
There are plenty of stories claiming we are experiencing a retail apocalypse. What ever it is, whatever the reason for so many retail closures, I see opportunities for indie small business retailers to shine. Here’s what I mean…
Mark,
Excellent stuff, totally agree with the potential to be successful through innovation.
Do not agree that same can be achieved through offering same as others with an indie store shingle. Brands like Ty, Hallmark, lottery, Lego etc do not speak “indie”. The public know they are everywhere and nowhere in particular. Price is everything, they have the same low cachet as agency and are seen by many as the opposite of trying to be different.
Real differentiation comes from point of difference, truly local sourcing and absolute customer service.
Colin I have seen some excellent indie stores have success with international brands through careful curation and other differentiating strategies. It is not the answer but it can be a piece of a bigger puzzle.
Almost all of that is true. Genuine and authenticity within the community goes an awful long way towards being a good retailer. But let’s face it. The newsagency business is not what it once was. Whole categories are disappearing or shrinking.
I’ve been assisting retailers for decades with location and lease management and many never make a go of it because their occupancy cost are too high relative to their overall margin. Look at the shopping centre occupancy cost data to show the brutal reality. The old saying that you make your money when you buy your wholesale supplies (meaning you are locking in the sales and GM at that time) is also true of signing contracts to lease land.
On the plus side, many landlords are very good at keeping newsagencies solvent once they understand the situation, but if the shop owners aren’t capable of making out their case, or won’t pay for expertise, they don’t seem to be able to win many battles and often perish. Newsagencies ARE needed in centres and lessors know this. This is the secret weapon most newsagencies don’t know how to exploit.
Stephen Spring
retaillease.com.au
Smart newsagents transitioned from the traditional years ago. In my experience it is often landlords who want them to remain traditional. Stupid.
True, some lessors are hanging onto the past, but not every lessor wants a C store or WH Smith type operation so its always case by case. Strip shop news agencies are different again.
The smart ones expanded to meet the market and the ones that didn’t are either struggling or have perished. There’s no guard rails in retail. Business owners have to present a good business case to themselves and others regardless…