How to compete with a retail box store
A competetor analyis would have to be done first. There is almost no way a small hardware store could ever compete with big retail selling the same items. Most big retail stores buy bulk so that that may sell at a lower price. Small hardware stores can not keep that much inventory alone in their stores. So seeing what your competetor and you share as far as price point on the items the small store carries would be essential. He would be wise to avoid as much direct competetion as possible.
I would recommend is to carry better brands than whats at the big retail chanis. Lowe’s and Home Depot do not carry what most people think of as a “quality tool“. By stocking your shelfs with items ...view middle of the document...
People will still associate his good name with the online store.
Just as important he should be marketing his standing in his own community. The store should be marketing its years in the business community, If it donates to charity work or helps the local sports team it should be advertised. The local sports team should have a very big advertisment of his store name to show he is part of this community. The stores customer service and product knowledge also needs to be top notch. It’s what they need to be known for now. Many customers just want to get what they need and leave without walking through a maze of a supermarket. If the owner and sales staff show superior knowledge about their products and friendly service, it will stand a much better chance of survival against the big retail chain.
Before this big retail store is finished being built. The smaller hardware store needs to be networking with the local tradesmen in the town. Establishing business contacts a with any and everybody that he can. This personalization will help establish a relationionship to help futher benefit the store from future clouser. The business should also look at joinign a co-op. Not only do these business help you advertise, they tend to stick together and you can buy inventory at reasonalbe prices. But many act as banks to help out speciality business(My client’s hardware store).
(Business Insider. 10 ways you can beat walmart. 18th April 2011)
(IBISWorld’s Hardware Stores market research report)
(New hope 360)