The retail giants are coming, and they've set their sights on my hometown, little Hillsboro, N.H. A community that was once a small mill town is about to become the retail center of the grid area that Wal-Mart has placed us in. And of course where they go, others follow. Plans are already under way for a large retail parts/tire and repair outlet. This is certain to have an effect on our operations, but how remains to be seen.
For as long as I've been here there has been at least one other parts store in town, usually two. One has come and gone and the others have changed ownership and group affiliation, but I think market shares have remained pretty much the same. We each fill a particular niche, we've prospered and we keep each other honest by providing an equal alternative to one another.
Large chain store competition, however, doesn't have to play by the same rules. With enough other outlets supporting the whole, the new store can operate on much thinner margins while they build a customer base. Since it's not an infinite customer base, their hope is that at some point the smaller competitors will drop out of the game, leaving them free to operate as they please. I realize that this is the nature of all business — the big fish eat the little fish — but as the fish get ever bigger, some things are lost.
This scenario has just played out in the grocery business here in town. For years we were serviced by several small, locally owned stores. Two years ago, a national chain opened a very large store and started drawing customers away from the locals. During this time they offered competitive pricing and adequate service. When the last of the local stores closed, that changed. Now most of their pricing does not even beat what other stores within their own chain advertise, and there always seems to be a shortage of help at the checkout. The extra time spent in line does, however, give you a chance to watch the advertisements on the TV monitors placed at these bottlenecks.
Some folks can't wait for Wal-Mart, the bigger fish, to get here and start nibbling at the tails of all the smaller fish. Competition is good, even between the giants, but it still leaves something lacking. Those who are unwilling to deal with grocery shopping here can take a 20- to 25-mile round trip drive to a neighboring town and shop at one of several locally owned smaller markets. It might not be as convenient, and you may even pay a little more for some items, but rather than being greeted by advertisements at the checkout, a cashier who seems to actually value your business takes care of you, and thanks you for it when you're done. You can also voice opinions, concerns and requests directly to someone who has the power to act on them. In short, they haven't lost the personal touch, and they value your patronage enough to cater to the individual as best they can.
It's troubling whenever competitors threaten your business, but it can work to your advantage if you let it. Competition forces you to look at yourself in a mirror and assess your weak and strong points and change what doesn't work.
Since no small business can compete with the giants on a level basis, the only option is to offer what they either can't or won't. With the arrival of the giants inevitable, I guess it's time for me to take a drive out of town, pick up a steak for the grill and a few cold ones and reflect on how we can do what we do better.
Mike Gordon, a 20-year counter sales veteran, works the counter at Sanel Auto Parts, Concord, N.H.
