Numbers add up for small retailers
-- Deborah Cohen covers small business for Reuters.com. She can be reached at smallbusinessbigissues@yahoo.com --
CHICAGO (Reuters.com) -- Jack Trifero has found safety in numbers. The founder and long-time operator of the Gramophone Shop, a music and media store in the tony New York City suburb of New Canaan, Connecticut, has teamed up with his fellow retailers in an effort to keep shoppers - and their holiday dollars - on local turf.
Four years ago the town's merchant community banded together to combat the increased proliferation of chain stores and big box retailers competing for business in what has always been a strong retail community with a plethora of high end specialty shops.
The result was a nouvelle attempt to return to the small-town qualities that American painter Normal Rockwell heralded more than a generation ago. Events such as the New Canaan Village Association's Holiday Stroll, a weekend celebration on December 5th and 6th, prepares the town for the year-end festivities and gives merchants a chance to showcase their goods. There's a tree lighting ceremony, visits by Santa, a ginger house tour and live entertainment.
"We sensed something was wrong and we were going to try to be positive about it," says Trifero, whose first New Canaan store opened its doors 35 years ago. "We're sharing ideas, we're sourcing clients for each other. We're thinking as a unit."
While he has no false expectations for a blow-out holiday season in a depressed retail economy, Trifero believes that joint efforts such as these can make a big difference in riding out the rough patches by attracting and retaining repeat business - long the lifeblood of small retailers who must make their mark by going the extra mile for customers.
"We're trying to make them understand the value of this community and we're trying to understand their needs," he says. "We're giving back to our town."
FIGHTING BACK
Throughout the country, smaller retailers are fighting back by teaming up in creative ways to lure holiday shoppers with value-added services and experiences. Those range from in-store tastings and trunk shows to support local artisans who supply distinctive products to simple efforts of reciprocity like offering discount coupons for a complimentary business down the street.
But one thing appears certain - independents believe it's harder than ever to go it alone. Cash-strapped customers are hungry for bargains, and small stores, often unable to compete on price, must find other ways to keep their shoppers around.
According to the National Retail Federation, a U.S. trade group, on the critical post-Thanksgiving shopping day known as Black Friday the majority of shoppers - some 54.7 percent - visited discount stores trolling for holiday deals.
"We're doing everything we can to be creative," says Harvey Rovinsky, owner of Bernie Robbins Fine Jewelers, a small chain of upscale jewelry stores in New Jersey and eastern Pennsylvania. The business frequently cross-promotes with furriers, travel companies and other luxury merchants.
Rovinsky's staff was readying for an in-store promotion this week featuring a visit with Philadelphia Phillies second baseman Chase Utley. Costs for the invitation-only event, restricted to customers who purchased a minimum $250 gift card, would be offset by several other local retailers, including a restaurant and a publisher of local city magazines.
"Anybody that's successful today in what they're doing has to go outside of traditional methods in reaching the best people - on a much more personal and focused basis," Rovinsky says.
STAYING POSITIVE
Cathy Zuniga, owner of two custom card and gift stores in Dallas, was gearing up to offer free holiday gift-wrapping for every customer visiting the Mockingbird Station mall, home to one of her Paperie & Co. locations. Last year, the store wrapped more than 1,000 gifts, many of them purchased at shops other than her own.
"Every year we kind of go it together," says Zuniga, whose complimentary service often leads to additional sales in her store. "I'm trying to stay very optimistic."
In Chicago, Greg O'Neill, co-owner of two specialty food stores called Pastoral Artisan Cheese Bread & Wine, was readying one of his locations for "The Shop Local Holiday Block Party," an event featuring six neighboring shops, ranging from a custom framer to an accessories retailer. A promotion for the event suggested that customers "shop local, save money and celebrate with independent merchants." It promised complimentary treats, drinks, carolers and special offers.
O'Neill, whose shop prides itself on foods from local producers, planned to feature an in-store presentation from a maker of handmade French salted caramels.
"My neighbors are complimentary businesses," says O'Neill. "If I can get somebody in my store to go to the store next door, it's going to end up coming back."
