The Local Store vs. The Mass Online Retailer
There are two kinds of people in this world: those who do their holiday shopping online from the comfort of their own homes while swaddled in their favourite pyjamas, and those who still want the full experience of shopping in stores with festive display windows and classic holiday tunes drifting down the aisles.
Despite predictions that brick and mortar stores would soon go extinct and all shopping carts would go digital, many local retailers with physical storefronts are still going strong.
Danielle Gauvin is the owner of the Highfield Street location of Sequoia Organics in Moncton. She says business at all three of their locations is going well. She says the difference between going into their store and shopping elsewhere online is all about the in-store experience.
“What we try to do to differentiate ourselves from Amazon or online, it’s just obviously the experience people get when they come through the door. It’s just a calming environment. We have free coffee and tea,” she says.
“Then of course we try and stock our shelves with local suppliers, so stuff you can’t find online, stuff you can’t find anywhere else. We try and create that sense of community, sense of supporting. You’re not only supporting a local store but you’re supporting local retailers and you’re buying unique gifts that you can’t find elsewhere.”
Gauvin emphasizes the uniqueness of what Sequoia carries, saying that many of their customers get excited every year to see what they’re stocking for the holidays. She says that’s what brings people back.
“There’s just a feeling I think you get when you come into the Sequoia stores, it’s just that warm cozy feeling and it’s a familiar face at the cash and it’s just a nice store to be in this time of year I think,” she says.
Jim Cormier, director of the Atlantic Canada branch of the Retail Council of Canada, says that small independent retailers are always challenged to compete against those that are bigger, have more revenue at their disposal and can negotiate better pricing.
“But that said, there are independent retailers that continue to survive and even thrive. And they do that by differentiating,” Cormier says.
“You don’t have to be a business expert or a retail expert to understand that if you are offering the same product and the same type of service, the same type of retail experience as a retailer that is 20 times larger than you are, you’re probably going to lose.”
Cormier says that the industry is learning that people still want the physical retail experience. He says that small independent retailers can set themselves apart in a number of ways from being in a high-traffic location to offering products that are a bit different and providing excellent customer service.
“There are people who love the very personal retail experience where they walk in the store, people know their name, it’s a very personalized service,” he says. “Of course, [retailers] have to be flexible. They have to be able to bend over backwards to service the customer.”
Malcolm Suttie, co-owner of Fredericton’s Room2Remember, is keenly aware of this. He says that downtown Fredericton is an especially unique environment for supporting local shops and goods.
“Those who live downtown and shop downtown are loyal to the downtown,” he says. “I think one of our biggest benefits is that we have a downtown community who want to live and do everything downtown and those people are very loyal customers so if you give them the best service that you possibly can, they will be a returning customer base for you time and time again and that has been the case for us for 15 years. We’ve developed a very loyal customer following and we work hard to make sure the customer service experience is the best that it can be.”
Suttie explains that they go out of their way to carry stock that can’t be found in department stores. He also explains that the common belief that small independent stores have to charge prices far above those of big box stores and online retailers is often untrue.
“We try to buy stuff that’s not out there in the marketplace and then if it is something that is picked up by a major big box store, identify if it’s something that’s worth continuing to carry or whether we need to change again and find something else.”
Suttie says Room2Remember is also about the experience. He finds people still feel the need for the face-to-face experience when shopping and want to be properly educated by a retailer who knows their products well.
This face-to-face shopping experience goes hand in hand with the experience of supporting local stores. Cormier says an important part of the local retailer experience is customers knowing that they’re supporting those who live and work in their own communities.
“You can make that argument about the large retailers as well because they’re employing a lot of people who live and work in your community too but there’s something to be said about supporting that business that is from here that’s been established here and they’re trying to make a go of it against the bigger retailers,” he says.
For Cormier, it all comes down to sales results. He says that while people appreciate local stores, there still needs to be motivation to shop locally beyond goodwill. Local retailers still need to be competitive price and quality-wise and provide that unique experience for their customers.
“People are still going to vote with their wallets when it comes to where they choose to spend their money and, yes, I might really like the local guy or girl who runs the local retail shop down the street from me, but if their product is not on par with what I can get from the international retailer, that makes it a really tough decision.”