Who Knew?
Warren Shoulberg -- Gifts and Dec, 3/31/2011 3:19:24 AM
Who knew that specialty stores would be the hottest retail format in 2011?
Who knew that Walmart would be struggling, with seven quarters in a row of negative comp store sales? Who knew that department stores would be struggling to get the promotional/premium balance correct, rarely succeeding at either? Who knew that retailers like Sears and Kmart and Penney would be zigging and zagging to try to get their merchandising mixes right?
And who knew that private equity guys - who with their gazillions of dollars to invest are a pretty good barometer of the relative financial strength of any market segment - would be targeting specialty stores as sound business investments?
Just when the retail world was getting ready to put the final couple of nails in the whole specialty retailing coffin, the format has been renewed, proving to be one of the more viable channels of distribution out there ... especially in the entire home area.
Specialty retailers have proven that big is not necessarily better. As some of the giants have struggled, the nimble independent has learned how to move quickly and stop on a dime - particularly when that dime is in a customer's pocket.
Specialty retailers have proven quite adept at reinventing their stores faster and more ably than bigger stores, moving into lowprice, high-margin categories like jewelry and fashion accessories when some of their bigger, slow- turning classifications were being given up for dead.
Specialty retailers have proven that often their site selection strategy (even if they didn't have one and it just sort of happened) is better than the big guys who got stuck in slow, lumbering regional malls.
And specialty retailers have also proven they can stick to the tenets of basic retailing, like special events, community tie-ins and creative displays, much better than chain stores who have become addicted to coupons, three-day oneday sales and all other manner of old and in-the-way promotional activities.
Mind you, specialty retailers don't have everything figured out quite right. They are for the most part under-capitalized and over-worked.
The life of an independent store owner is not an easy one. There's a reason why most of your kids don't want to go near your store.
But ask any retail executive in any channel of distribution what kind of store they wish they were running, and you'll be surprised how many would choose a specialty operation.
The rest of 2011 is not going to be easy. Business conditions remain tough and only the hardest working, smartest guys are going to be able to ride this one out ... again. But a good specialty store is in the best position to make it happen out of any retail business in the industry.
Who knew? You did.
We would love your feedback!
-
A Special Relationship
Feb 24, 2012 -
Specialty Prices Need Work
Oct 21, 2010 -
The Sky is Not Falling
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