Skip to main content

Where do independent retail stores shine?



Where do independent retail stores shine? Wholesalers know that their customers do well in troubled, lower income neighbourhoods but they don't tend to share this knowledge widely.



Evidence of this is rarely published but some interesting numbers emerge in an FT article on up-market US grocer Whole Foods plans for a store in Englewood, a poor Chicago suburb.



City analysts agonise at whether Whole Foods can go down market. But consultant Mari Gallagher shows the potential gap. Of the 87 stores in Englewood that accept food stamps, 85 are "liquor, dollar or convenience stores that specialise in candy and soda."



A spokesman for Chicago mayor Rahm Emanuel says it is investing $10m in subsidies for this Whole Foods store because some communities "have been ignored by companies that want to expand."



There is plenty going on in this story for independent operators in poorer areas to think about:

  • Are you close enough to local politicians to explain the value of your offer?
  • Do you offer cheap fresh food? Should you?
  • Is what happens a world away in Chicago going to inspire local politicians to subsidise a Little Waitrose near you?
 For more, see www.betterretailing.com

Comments

Popular posts from this blog

Digital disruption in the UK wholesale space

“Twenty years ago I was driving boxes to the post office in my Chevy Blazer and dreaming of a forklift,” says Jeff Bezos in his most recent letter to shareholders. A blink later and he points out that the company has grown from 30,000 employees in 2010 to 230,000 now. But his ambition is the same. “We want to be a large company that’s also an invention machine. We want to combine the extraordinary customer-serving capabilities that are enabled by size with the speed of movement, nimbleness and risk-acceptance mentality that is normally associated with entrepreneurial start-ups.” Amazon is great at disruption because of its customers focus and the fact that the internet means it needs none (or very few) people between its warehouses and the shopper. The threat of Prime, its membership service, is the biggest challenge facing the UK retail market and the wholesale market by extension. It is both a direct threat and an indirect threat in that is inspiring countless numbers of othe...

The secrets of persuasion: No short cuts.

The best moment in my interview with Terri Sjodin, who teaches many of the world’s top corporations how to sell persuasively, is when she smiles at me and asks to hear my “elevator speech".   My mind literally goes blank. The author of Small Message, Big Impact , her new book on how to craft powerful messages that persuade people to listen to you, has thrown the gauntlet at me. There was nowhere to hide. I had just told her how I had used her book to write out my three minute speech to open the Local Shop Summit. She listened patiently to my pitch, thought for a moment, and said: “I bet you had an illustration in your mind of an independent who really capitalised on your ideas and has taken them to the bank.” I could swear she was reading my mind. I blushed and nodded. “So you should open with this story,” she said. “Start out by saying: ‘Let me open the conference by telling you a great story with a happy ending.’ So the audience will say to themselves: ‘He is goi...

What do shoppers see

I read a good post (http://www.newsagencyblog.com.au/2009/08/28/what-do-newsagents-charge-for-faxing.html) asking what price local shops charge for providing a fax service. The blogger had attached a photograph of his sign with his prices on it. What struck me was the message on the sign. "You drop, we fax," it said. "Pressed for time, drop your documents with us and we'll do it for you at no extra charge." That is a message that will persuade most shoppers that you want to give them good value, even if they stay to do the copying or faxing themselves.