subject: Are Small Shops Being Elbowed Out By The Big Supermarkets? [print this page] Changing life styles, consumer tastes, preferences and economic factors are causing major changes in shopping and eat out styles the world over. In France for instance Cafes and bistros considered an intrinsic part of French tradition and culture are gradually giving way to the more swanky and upmarket restaurants and pubs leaving old timers and loyalists distressed. The French government is trying to keep these quaint old land marks which have over the years become a part of French lore and custom as much as wayside inns are part of the English countryside, by giving government subsidies and tax benefits.
The saying goes change is the only constant but in reality the human mind does not take changes in its stride for a number of reasons, it yearns to keep the old order and in most cases such attachments are just emotional and not driven by any material benefit. People nurse fond memories, a sense of comfort, oneness and habituation with the old order and tend to view any external influence or change as an aberration. There has been a lot of talk for quite some time now that the small, familiar, neighbourhood shops would soon make way to the big chain stores and super markets. This has not gone down too well with traditional shoppers who see it as an end to an old experience.
Will small grocery stores and shops be replaced by the big brands like Wal-Mart, Mark& Spencers, Food World etc? The answer is both yes and no. It is certainly a fact that big super market chains are spreading their wings like never before and entering even small towns and the countryside and in many countries like India, big business houses from totally unrelated backgrounds and foreign companies are entering the high profit retailing business hoping to grab their share of the pie. As in any business, size does have significant advantages when it comes to competition and these large establishments are certainly giving anxious moments to the traditional shop keepers. Shoppers, especially the teens and youth who account for a good percent of business are the main segment drawn by theses modern outlets. Big super market chains naturally have huge off takes, they centralize their purchases and strike better bargains from vendors on account of their high volumes. In some countries like India they pass over a part of this advantage as price discounts to customers, a business strategy which is frowned upon as an unfair practice by small shop keepers who cannot bring down their bottom-line in this manner. Big super markets are also able to provide giveaways and exclusive price offers by leveraging their size and business volumes. In many cases small shops have either moved away or in worse scenarios simply closed down, unable to take on the might of these large players when they open up around the corner.
Interestingly it is just not the shop keepers who are worried about the imminent threat the super markets are posing to them but also a good section of consumers who are upset about the phasing out of the friendly local shop they are so familiar with. They feel much more at home shopping their stuff from the friendly local grocer, having a chat with him rather than these large impersonal outlets which they feel are loud, garish and full of pomp besides depriving small shop owners of their livelihood.
While it is commendable that the government in France is coming to the aid of the caf and bistro owners, it is arguable whether the government should spend its time and resources in safe guarding the losers in what is essentially the result of market forces at work. While one may strongly miss the disappearing small shops and even equate them with the passing away of a vestige of the old world, we cannot miss the fact they are commercial entities and not national monuments and they need to survive on their own strength or disappear in the face of negative market forces working against them and the government can do little in this regard.
Do small shops not have a chance to stay on? How serious is the threat from the big players? Will they become totally extinct before the turn of the century?
While the threat from super markets and chain stores is real and there have been instance of small shops being driven out of business after a super store opened in the neighbourhood, the fact is that small shops would continue to be around, the market is after all so much like the sea where the small fish coexist along with the sharks and the whales, they do get gobbled up occasionally but do not totally disappear from the scene. Small shop keepers should realize that if they cannot stand up to the financial might of the big players they could well fight back with their ingenuity and imagination.
1. They could use their small size and familiarity with the local population to their advantage by extending a highly personalized and warm service
2. Have a shop ***istant pick up the monthly grocery list from neighbourhood homes and have their stuff door delivered free of cost
3. Bringing in a friendly ambience by setting aside a small portion in the shop where locals can meet and read the daily paper, discuss, exchange local gossip or watch TV while they are served coffee or Tea and biscuits on the house and kept engaged in conversation. Just make it beyond a shop - a familiar, friendly, local meeting point.
4. Specialize in selling local favourites, like fresh cheese or local farm produce which the big players may not stock
Such personalization would go a long way in creating a strong bonding and affinity with the locals; retain them as loyal customers and help small shop keepers stand their ground in the face of the onslaught from the big branded super markets.
