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"Competing" and "winning" in business and trade has been much in the news as the Trump administration begins.
Meanwhile, at the NRF's BIG Show 2017, where technology dominated (510 retail tech exhibitors!) it was reported that in 2016, "Amazon spent more than $15 billion on innovation, which is more than the top 20 retailers (excluding Walmart) combined."
Yikes! How is an independent retailer to "compete" and "win" in that environment?
Well, consider this perspective:
- A lion and a gazelle wake up on the Serengeti. The gazelle knows that to outrun the lion, it need not be the fastest gazelle. It only has to be the second slowest.
The good news for many retailers is that you don't need to outinvest or even beat Amazon. (Whew!) You just need to outperform your weakest competitor!
- Amazon is unquestionably a relentless competitor and growth machine. So too was Wal-Mart. And before that, the "category killers" like Barnes & Noble, Office Depot and Toys 'R Us. And before that, regional malls. Department stores. And on and on.
- The Big Guys will come and go. There always will be another one emerging.
Through all that, independent retailers who stay focused on their own survival – keeping their own competitive edge, knowing their real competitors – those retailers have continued to have a place in the community. And that is truly a win!
In mid-January, the Wall Street Journal reported that a real estate investment trust that runs class B and C malls across the country "is allocating a portion of space in its portfolio of about 70 million square feet to pop-up stores". These pop-up stores offer 60- to 90-day leases. The REIT is "targeting new merchants, including those that started their business online."
- Crocker Galleria, in downtown San Francisco, has a 1,700 square foot Storenvy Popup that began in 2013 as a venue for new merchants. They cite one example of a women's clothing retailer that "started out in a 'fashion truck' in a parking lot, moved to the pop-up space, and now occupies a retail storefront in the three-story mall."
However, we see a great opportunity for an established retailer – like you, perhaps? The mall business is very tough right now, and few landlords are in a position of strength. That means that more of them are open to considering new ideas.
As an independent retailer, maybe you can be very nimble in setting up and operating a 90-day pop-up shop.
Plus, as an established retailer, versus a new merchant, you could draw in foot traffic, coveted by mall landlords.
- Maybe you want to experiment with a new concept.
- Or, close out of a category of goods.
- Or, reach out to a new market segment.
- Or...?
Few landlords have retailers clamoring for long-term leases. For them, the opportunity to get some revenue – and its accompanying foot traffic to their property – could have a great deal of appeal.
Even better, it's a fine way for you to be able to experiment, innovate, and maybe even re-energize your operation.
Might a grim situation for some landlords be a golden opportunity for you? Something to consider.
