Independent retailers are a huge economic engine in local communities. To find out its role for the US economy, SCORE examined the topic and put together the latest retail statistics for 2019 in an easy-to-understand infographic.
With the title "Small Retailers Can Compete and Win", the report appears at the right time as July is the month of independent retailers. This is an annual "shop local" event that encourages consumers to support their local independent retailers.
To what extent are local retailers responsible for the growth of their local economy? The 2019 sales statistics and quotes in this article, which come from the Independent Retailer Month website, provide some insights.
"$ 100 spent on local independents spent $ 45 on secondary local spending, compared to $ 14 for a big-box chain." local self-employment
In terms of numbers, small retailers with 50 or fewer employees account for 98.6% of all retailers. And they hire 39.8% of all retailers.
These retailers have an average monthly revenue of $ 22,341 with an average gross margin of 51%. And when they make money, they invest more on the ground than big chains.
"Local retailers invest 130 percent more of their revenue than retail chains and 676 percent more of their revenue than Amazon." – Study "Home Sweet Home: Local vs. Home." Amazon "(2018)
E-commerce accounts for only 9.46% of retail sales at Amazon and online retailers. And according to SCORE, 55% of online shoppers prefer to buy from retailers with a presence in the store compared to online only.
While online retailers are on everyone's lips, consumers still want to shop in physical stores.
The shopping experience can not be copied to a computer. But small retailers need to make the experience more attractive, because ultimately, low prices are a great incentive.
According to SCORE, "retailtainment" events attract, bind, and bind customers. In 2018, more than 4 out of 5 (82%) buyers visited a retail event and 58% said they would visit one in the future.
Some of these events are: exclusive access to items or sale (87%); Party (81%); Product demonstration or tutorial (80%); Game or competition (71%); and pop-up stores (69%).
If you attend these events, you will not only enjoy the social experience, but your support will also generate local economic activity.
"A study in New Orleans found that if residents and visitors shifted 10 percent of their spending from chains to local businesses, they would generate an additional $ 235 million a year for local economic activity, creating many new opportunities and jobs , "- Economics
When you talk about online retailers, Amazon is the first name that pops up. However, it should be noted that the company generates only about 5% of retail sales in the US. So there is a big chance out there.
"For every $ 10 million spent on Amazon, 14 jobs are created versus 57 jobs when $ 10 million is spent on self-employment!" – The Institute for Local Self-Reliance
While price matters a lot, convenience is one of the main reasons why online retailers are doing so well. As you begin to provide the same smooth shopping experience and make it more personal, you'll see more customers walking through your doors.
SCORE offers some great tips on a blog titled "How Stationary Stores Can Compete with Amazon". In it says Natalie Berg, co-author of "Amazon: As the world's most relentless retailer will continue to revolutionize the trade" that stationary retailers can exploit the weaknesses of Amazon.
Berg adds: "Give [your] more personality. The shops change from transaction to adventure business. The store of the future will be a place [where] where consumers can eat, play, work, learn, discover and borrow things. "
This means that you should focus on areas where Amazon is running low. You can curate a selection of products, have unique items and make the shopping experience enjoyable.
As Berg says, "Amazon is great for buying, but not for shopping. They have taken the shopping and soul of shopping and made it simply transaktional and functional. "
At the same time, you should provide some of the options that online retailers offer, such as: For example, clicking, collecting, and accepting other payment options. The key is to make the online experience of your retail store more valuable to your customers.
For more numbers, see the SCORE infographic below.