There are fears that the informal retail sector may go into extinction as a result of the emergence of big players. Analysts have, however, insisted that rather than be driven out of relevance, small retailers have continued to innovate to increase their market share of the retail shopping business, reports TONIA ‘DIYAN.
They are called small retailers. They appreciate that profit can be made if consumers are satisfied; hence they are stepping up their game to ensure the satisfaction of customers.
Of course, they understand that the major goal of production and distribution is to enhance consumption.
They are evolving strategies to be on top of their game, working to retain their market share through the offer of lower prices that are far lower than those offered by big shop owners that have invested much to achieve international standard.
One of such rising small retail shop is the Home Store at Adeniran Ogunsanya Street, Surulere, Lagos. It sells gift items. By all standards, it is a small retailing outfit.
Its owner, Mrs Aina Shobowale, said she relied on her ability to gather intelligence information about what customers want and then order such products immediately.
The ability of small stores to react quickly and directly to customers is one of the most effective weapons they have, Sander Norman, Centre Manager, Ikeja City Mall, said.
He said: “They can easily determine what is selling and then place orders without wading through a cumbersome bureaucracy. They don’t have to go to the corporate office, wait for their request to be analysed and then shipped to them. They are finding a variety of creative ways to play up the benefits of their size.”
Norman said these retailers are also using marketing tactics like the usual extra emphasis on customer service and sales promotions. But their most important step may be that they are trying to make the most of their inherent advantages over larger competitors.
A beauty consultant, Miss Grace Chinemerem- Israel, said almost daily, she spends a lot of time calling wholesalers directly when popular items get exhausted in my shop.
Now, she has to go the extra mile, paying extra to get her parcels delivered.
Similarly, Proprietor, Cake Treat, a cake shop at Omole in Lagos, Mrs Deborah Faleyimu, said she had also been watching sales more attentively than in the past. “After the weekend, we will figure out some items we do not have on Sunday night, and then make them available the next morning. We do this to ensure that our customers don’t come and discover they can get what they need,” she said.
Also, small store owners say they often hear directly from their customers about new products and then see how the items sell.
A year ago, Mrs Modupe Shopeju of Delightsome Gifts Concept, said customers began telling her how much they liked an egg shape flower vase called the Arewa vase. So she started stocking it. A week later, she sold all out. She re-ordered, and it sold out again in a week. Now, she keeps a steady supply of the vase “You’ve got to pay attention to the feedback,” she said.
Small retailers also have an advantage over bigger competitors in other areas, particularly customer services, said Mrs Folashade Akinremi, a home management consultant. “Stores are upping the ante with more personalised customer service, particularly if they’ve depended on that for sales in the past.”
The General Manager of Green Mount Global Limited, Mr Kenneth Okeiyi, said he makes sure his workers have a list of recommendations they can offer to panicky shoppers. He also offers free gift wrapping services to them.
Taking advantage of those more personalised relationships, some retailers are also doing more direct marketing, especially through e-mail messages and short message services (SMS).
Proprietor, Corner Cafe, Ms. Joan Philips, employs this personalised services to her clients. According to her, she mails special promotions to all the people on her email list. “I probably wouldn’t be doing so much direct e-mail marketing if I were expecting a different shopping climate,” she said.
At Delightsome Books & Coffee Shop, Ilupeju, a gifts exhibition was held for employees and clients to promote sales. According to the owner of the retail outlet, Mrs Juliet Morgan, the promotion could add about five per cent to the revenue of the business.
Another crucial area for retailers of any size is smart use of the Internet. Consumers are expected to do 30 per cent of their shopping via the Internet, according to the National Retail Federation.
Executive Buyologist of Buyology.com,Yeye Arogundade, said a web site has become a sine qua non in the retail business.
She said: “If you don’t have a web site in this business, you’re at a competitive disadvantage.” According to her, in some cases, shoppers make their purchases in the store, but using the Web for comparison shopping, checking out prices and ensuring that products are in stock before making the trip.
Small retailers are also borrowing a leaf from the big stores through increasing their advert spend. Though they cannot match that of the big stores, they try improve. Many of them now cater to more affluent customers; and stores that sell to that market will most likely do better.
There is need to stress the fact that “small shops” and “big shops” are rather indistinct and that the classification of a unit of business as big or small is different in different places and has changed significantly with the passing of time.
A survey of the small and big shops revealed that prices vary according to commodities; some items are sold cheaper in the smaller stores than the big shops and vice versa.
A shopper, Mrs Chinaka Azuka confirmed that over time, she had discovered that some items cost less in small and traditional open markets than the big modern shops. For instance, she buys serviette tissue paper for between N50 and N100 from a small shop in her neighbourhood; the same item goes for N350 in a place such as Mega Plaza in Victoria Island.
“It’s not everything that I buy from the big shops. You’ll find out that the smaller shops and open market still sell cheaper than the big shops we have today,” Mrs Azuka added.
For Mary Ukah, she cannot buy items like children’s toys in the big shops, which she alleged are imported and sold at very exhorbitant prices.
