Small retailers can triumph over ‘big box’ chains, author says

Whenever a big box store announces plans to open a store in a new community, one common reaction to the news is that it will prove to be the kiss of death for the area’s small retailers.

That doesn’t have to be true, Marc Joseph says. In fact, he believes small retailers can compete and win against the mega stores, and he outlines how they can do just that in his new book,The Secrets of Retailing, or How to Beat Wal-Mart.

Joseph, who lives in Scottsdale, isn’t just an author and retail expert. He also is president of DollarDays International, an Internet-based product wholesaler to small businesses and local distributors. His book is based on his own experiences in competing against, and being a supplier to, the big box store referenced in the title.

Marc’s tips for how independent retail entrepreneurs can be successful:

• Think Small
  While large chains can buy in very large quantities, they can’t buy in small quantities. They can’t benefit from the true closeouts, which are broken lots or left-over goods that a manufacturer needs to unload. This gives the smaller retailer a chance to show products of real value that may still be part of a chain store's regular assortment.
• Go Unique
  There are many new and unique products that, because the supply is limited, chains pass over them, giving the independent stores a chance to show many different hot new items.
• Develop Relationships With Small Manufacturers
  Many small manufacturers will not sell to chain stores because one year the chain may gobble up most of their production, and the next year the chain will take that item and make a knock-off overseas, leaving these manufacturers holding the bag.
• Agility on Overhead Cost