Adapting to a New Reality will continue in subsequent Informer issues with various topics of how the recent changes in the market, economy and retail world are affecting your business. This is the first of the series by Evan Wise.The recession has had a profound impact on your customers, your vendors, your employees and the entire business community. Your success will depend on your ability to read these changes and adapt to the new reality quickly, creatively and effectively. The first requirement is to be able to identify the new emerging trends. Over the next several issues, I will try to point out the various trends that are being impacted and propelled by the many recent changes. Prudent retailers will be able to assess how these trends have affected their business and more importantly, how they will assess their own situation and decide how to take advantage of the changes. Your comments will not only be welcome, but they will be important feedback during this time of considerable flux.

The independent retailers’ great advantage has always been that they are closer to their customers, and thus better able to understand them than the chains and big box stores. That advantage is more important now than ever. With the understanding of the sales pulse of his clientele, a successful retailer can take that knowledge to market and find merchandise that attracts his customers and keeps them coming back. Chains and big box stores count solely on megatrends to compete and cannot match the independent’s ability to surgically target the market. That precise approach is why independents command higher price points but they lose the battle of markdowns and promotions.

The recession has spawned a trend for customers to be more skeptical which means that the trust that existed in the past and was a key to independent retail success may be questioned. New trust will be more difficult to achieve. Customers are more willing to explore different shopping venues. Trust and loyalty both are more tenuous when the customer is fearful about his own future. The need to develop trust and strong relationships has always been the cornerstone of independent retail. It presents itself now as a fierce challenge but its importance has never been stronger. Trust must be the foundation for everything from marketing communication with customers, dealing with employees, creditors and local vendors.

As an independent retailer you must be more creative in providing the right price, selection, service, policies and experience for your particular niche in the market. What are you doing to demonstrate your values, the trust you place in your customers and how they see that in the shopping experience?