See All Her Faces went dark over the last few weeks, but I'm back now! I was in mourning, because a lovely little gift shop has closed recently on my local high street- the second one since I moved to the area. In fact the first one was featured in the Evening Standard as one of the 'secret finds' in London, around a fortnight before it had to shut up shop for good.
So clearly- Houston we have a problem.
It is a well-publicised fact, that the humble high street has been in decline for a long while now. The rise of out of town mega supermarkets, which cater not only to your every food whim at a low cost, but also now provide clothes, home furnishings, electronics etc etc, mean that some time ago it became part of our weekly routine to drive to the supermarket and stock up, rather than pick up bits as and when from our local stores- who we found in comparison to have too limited, and too expensive, a range.
And then the fight-back began- for a number of reasons- a realisation that if we didn't look after our high street it wouldn't be long before it was all charity shops and KFCs, an appreciation of the quality of product coming from local, specialist vendors (meat, fruit and veg, unique furniture or clothing etc), an environment (and financial) awareness also- of reducing one's own consumption and waste by buying little and often, and reducing food miles by spending our pound on more locally sourced ingredients; and finally, a migration towards that which we know and trust, and which knows us, in uncertain times.
So if, as the campaign goes, we now all 'Love Your Local High Street', why are shops still closing?
They have a captive audience, due to their proximity and thus convenience, they have a customer base which is alot more switched on to supporting local business, for both altruistic reasons and plain old self interest.... Yes there is a tough economic climate- but any stores who couldn't survive that closed long ago, as things are getting better rather than worse at the current time....
There are a few reasons why some local retailers still have some work to do to get you to spend your money with them.... And as ever, it's all about the customer.
1. Knowing the Customer.
The customer should be at the heart of everything a good retailer does, whatever their size. Every decision should be made with the end purchaser in mind, and whether it will enhance their shopping experience, and make them more likely to buy and to return. In order to do this you must 'know' your customer. Who are they, what sort of things do they like, what are they comfortable spending, how often do they shop, how long do they shop for, who inspires their choices and decisions... the list is endless.
This is a lot more difficult for the big boys, who do not have the opportunity to know or interact personally with the customer walking through the door (or clicking through on the web), and as such they must rely on sales performance/web stats, market research, and data derived from loyalty schemes (which they place a huge premium on- so remember how much you are personally helping Tescos in exchange for your Clubcard vouchers) in order to figure out who you are and try to sell more stuff to you. .
Small businesses have a huge advantage here- they have the potential to interact with every customer who walks in the door, a unique opportunity to observe and better understand their customer base and their habits- to guage what their customer base looks like, which products they are interested in, how they shop, and to build spend and ultimately loyalty, based on the product and service they provide.
But they don't always use it. A clothes store I know serves quite a young, relatively wealthy area, and has a constant stream of trendy ladies desperate to spend the money burning a hole in their pocket. Yet I rarely see anyone buy anything because the store simply doesn't cater to their needs-,they have no representation of this seasons' trends and a huge very retro vintage section that doesn't cater to the tastes of the locals... Perfext example of a Buyer selecting products
they like..
2. Serving the Customer.
And then we come to something else that should be a no-brainer for small businesses- Customer Service. Again an area that large retailers are notoriously weak on (apart from the saintly John lewis one hastens to add), this is rather difficult to succeed on with inexperienced, poorly trained, un-motivated staff. It should be so much easier with a friendly expert on hand, with an interest in helping you make your purchase decision.
Local retailers have the chance to make you feel valued and welcome the moment you walk through the door (and you don't get
that at Tescos). They can advise and inspire you and thus gain your trust and loyalty (regardless of perhaps an increased cost)- what you could make with those broad beans, what belt might look good with that dress, which model of laptop you should be going for....
And yet- How many times have you been in a local store, where you have either been harrassed, or ignored, when you might have happily discussed the product, or what you were looking for, given the chance? There is another clothes store close to me, with beautiful dresses, that I never go in since the day I tried one on and got the hard sell from the couple who owned the shop, pushing me to spend £250 on two dresses!
3. Doing it Better than the Competition.
And finally- learning lessons. Successful retailers are constantly looking outside themselves to find ways they could improve- looking at things their competitors are doing well, whether that is new products, cheaper prices or innovative services. To stay ahead of the game you need to know what everyone else is doing, and offer something different, something better. Those managing small businesses need to be cogniscent of what their competitors are doing- even the big ones, so that they are one step ahead of the game,, and to understand if it is something they should also be doing, or whether they have a point of difference that renders it un-necessary. And one thing we now know is it isn't necessarily about price anymore- people ar ewilling to pay if they feel they are getting a good deal. So if the other shops are reducing their prices on electronics do you need to? Maybe, if you want to stop them taking some of your sales, or maybe not, if yours are high quality, and the sale comes with expertise and service that marks you out from the rest. But either way you need to know what they are doing and why you are/aren't.
So, too late for my local gift shop then, but as the high street evolves, maybe something even better will take it's place. Here's hoping that doesn't mean a KFC....
