Smaller businesses focus on staying competitive
Despite the opening of more and more large retail stores, economists say that small retail stores should not be affected if they focus on their specialities. Spokesman Scott B. Krugman of the National Retail Federation (NRF) in Washington D.C. said that small retailers generally focus on a particular demographic. This benefits them if they can not lower their prices. "The public is a very cautious consumer, focused on price," Krugman said. "If smaller mom and pop stores focus on specialties, they'll be fine." Manager Larry Boylen of True Value said that their advantage is having depth in a lot of departments such as plumbing, electrical and hardware. The employees are more experienced in their particular areas as well, he said. Boylen gave plumbing as an example. "People in this store know the products and have done these type of [plumbing] projects before," he said. Kozelka's, LA Fashions and Wall Street are three of the largest clothing stores in Prairie du Chien that all focus on different demographics, which helps them compete with large retailers. Kozelka's focuses on men, LA Fashions sell items for working women. Wall Street focuses on female middle class consumers age 20 and above. They also have a children's store for both sexes. Krugman said that smaller retailers sometimes have better hands-on customer service, which is a tremendous benefit. This is mainly due to the fact that large retailers have to focus their energy on numerous stores. "It's easier to train your staff in a vacuum," he said. "They're smaller and centralized, not dealing with hundreds and hundreds of employees, which thins out the talent pool." Marlene Dyer, part owner of Radio Shack, said that they have difficulty selling TVs, VCRs and DVD players because they do not have the selection that large retailers have. Dyer said that an advantage they have is that they carry items such as police scanners and weather radios that larger retailers do not usually carry. Dyer said that Radio Shack excels at having employees who focus solely on electronics. They can also take the time to focus on individual questions. "If elderly people or anyone that is 'electronically challenged' have trouble programming their remote control or VCR, we'll program it for them," she said. Dyer said that Radio Shack also does repairs and they install larger items such as home theater systems for free. Smaller items can be installed, but there is a fee. There are other examples of customer services that might not be offered at larger retail stores, according to owners of these small businesses. Kozelka's offers rentals of suits and LA Fashions' employees can personally wrap your gifts. The smaller retailer owners and managers in Prairie du Chien said they try to find out how to satisfy their customers by asking them directly. Kozelka's owner Tom Kozelka said that "over the years of talking to customers, we certainly have an idea of what they want." Dyer was printing out a survey when contacted. She said the problem is people get programmed into going to the large retailers. "I think the way to compete... is to emphasize value over price," Judy Wall, part owner of Wall Street, said. There has been national concern about the effect of large retail stores on smaller businesses, but retail experts said that the poor economy will not be prejudice.
"Retailing hasn't changed," Krugman said. "It's a tough retail environment in general, whether you're a large discount retailer or a mom and pop store."