Why Mom and Pop Independent Retailing in the Brick and Mortar Environment Is Gradually Changing?
People used to talk of going down to the “Five and Dime,” but that term isn’t really used anymore.
Today’s younger generation would likely have never even heard the term or have any idea what it means.
One of the reasons that this term is disappearing is that retail has become ultra-competitive in today’s society.
People have endless ways to purchase merchandise now and in many cases never have to leave their house in order to have it.
It doesn’t matter what line of products you are involved in selling.
In order to stay ahead of your competition as a small business, you must have very deep pockets or a competitive advantage that is unique or both.
Unfortunately for most small businesses, they don’t have either one of those things, so they must face a daily struggle to stay profitable.
Often, they are able to make a profit but it is not enough for them to actually make a good living at what they do.
Amazon, online sites, ‘box stores’, big chain retailers are
literally killing the concept of the “Five and Dime” independent retail store.
Many cities don’t even have the “Five and Dime” or “Mom and Pop” stores anymore, because they have been completely overwhelmed and run out of business.
If you plan a retirement sale, just imagine your store looking like this at the start
With long lines of customers and minimal discounts
Click on play icon to see the video
And looking like this after the store closing sale is over
The Mom and Pop stores exist mostly in small, rural towns where the larger stores have not yet gone because they are not large enough communities to be economically feasible.
However, home delivery from Amazon, Walmart and the like are quickly moving in on those areas.
For the larger chain stores to move into a community there has to be both a need for the store and enough of an economic base to support the store.
Feasibility studies are conducted by these larger stores in order to determine the areas and towns that would be best for development.
Sometimes, however, these bigger stores are not wanted, and towns vote against letting them come in, because they know that they will kill the Mom and Pop retailing that the town has.
The push to stop these stores is quickly losing steam with more people opting for the convenience of the larger stores over preservation of the community stores.
It is no secret that brick and mortar environment is changing rapidly because so much business is also done on the Internet, and the Mom and Pop stores have no defence.
They cannot compete with online convenience, selection and pricing, so they are left struggling and doing anything to hold on to their business and their loyal customers for as long as they can.
They sometimes take a desperate swipe at marketing or social media to try to increase sales but with the complex algorithms they see little success in changing their situation.
Think about the size of the town you live in…
How many legitimate Mom and Pop stores do you have?
Most people can’t think of any. Some can name one or two that are still around.
When was the last time you went into an independent retail store? What was your experience?
Did you look the item up on the internet? Did you actually make a purchase?
It is clear that the end of the Mom and Pop independent retailer is coming to a close and the concept of smaller brick and mortar stores are a business that is slowly being replaced by online commerce and larger retail chains.
The thought is not “if” an independent retail store will close, it’s a question of “when”.
An exit strategy is a must now for these retailers as they face this overwhelming trend.