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How To Fight Back Against Big Retailer Tactics

Posted by admin on 11/21/13 10:00 PM
Topics: holidays, college retail, showrooming, eCommerce, textbook affordability, fighting competition

The following excerpt is from an article written by Kelly Spors, editor, writer & content strategist, and published on AMEX's Open Forum. Read the full article for more ideas on combatting big box retailers this holiday season.

According to Candace Corlett, president of WSL Strategic Retail, a New York City-based retail consulting firm, "The smartest thing independents can do is say, 'We’re not going to compete directly with the Targets of the world.'"So if you shouldn't go head to head with the big box stores, what should you do? Corlett recommends that independent retailers focus on their strengths—things they can do better than major retailers—and find creative ways to lure shoppers into their stores and convince them to buy.

Here’s a look at three ways big retailers plan to attract shoppers this holiday season and how independents can fight back:

Major Retailer Strategy: Price-slashing.

The big box stores have already started rolling out early sales and discounts to entice shoppers, a strategy that will likely continue or even ramp up as Christmas approaches. A holiday shopping survey by Accenture found that 62 percent of shoppers say they'd need a 30 percent discount in order to be convinced to buy something this holiday season. Even retailers like Nordstrom, Macy's, REI and Bloomingdale's that have traditionally been reluctant to drop prices and offer sales around the holidays are already promoting huge discounts of 40 percent off or more.

How to fight back:

Most independent retailers can’t afford to slash their prices or match large retailers’ discounts—nor should they try, experts say. Instead, smaller businesses should focus on providing customers with extra perks that draw shoppers into their stores and make it worth spending a little extra.

Corlett suggests that smaller retailers try to do a better job of helping their customers figure out what gifts to buy. “Be a shopping buddy—don’t just be a store,” Corlett advises. That might include setting up a display with the top five hottest gift items for the season, she suggests. “Make it the top five fashion items, the top five things for women or the top five things for babies. Just make sure you have enough of it in stock.”

Stores should also think about bundling items that could be bought together as a gift. For instance, a store that sells bathrobes might put bubble bath, candles or mugs with chamomile tea nearby to suggest as complementary purchases. A store could then offer a discount to shoppers who buy several items as a bundled gift. “Companion products increase the value of the gifts," Corlett says, "and increase the value of the transactions.”

Major Retailer Strategy #3: Online shopping and “showrooming.”

Online holiday shopping is predicted to grow 15.1 percent in 2013, according to eMarketer, and many major retailers have bolstered their online presence and are offering free shipping and quick delivery to make online shopping even easier, more rewarding and compete with the convenience of shopping on sites like For example, Nordstrom is offering free delivery on all orders, while Macy's has focusedon improving its inventory management and getting products to shoppers faster.

One disturbing trend for smaller brick-and-mortar retailers is the habit of “showrooming”—the idea that shoppers will visit their stores to browse and check out products but then actually make their purchases on Amazon or some other retailers’ website where they can find the product at a lower price.

How to fight back:

Independent retailers should make sure that a portion of their gift items are unique products that can't easily be purchased for less online. If a business can’t offer a unique selection of gifts because, say, they sell cameras or refrigerators, they should offer a better level of service that online retailers can. For instance, a smaller retailer might be able to provide fast delivery times, offering to deliver the product to a customer's home the following evening and set it up for them.

Loyalty reward programs can also be an effective way for independent retailers to win. Giving loyal customers exclusive discounts, free gifts and special treatment, such as their own shopping events, can help prevent them from shopping online. As Kniffen says, “If you’re an independent, making people feel special is the best weapon you’ve got."

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