Small Shops Have Advantages Over Bigger Rivals, Study Finds

Though all retailers are being buffeted by today’s economic turbulence, independents do have some strategic options not readily available to their chain competitors. At least that’s the conclusion of the first-ever “State of Independent Retail” report issued by Faire, an online wholesale platform used by independent retailers to source unique products from around the corner and around the world.

“Drawing on a global panel of independent retailers, the report finds that physical stores are outgrowing online-only ones, small towns are outpacing major cities and independent retailers are identifying consumer trends and stocking their shelves with new products before they become mainstream,” Faire wrote in its news release on the report.

Flexibility – especially when it comes to inventory choices — is one of independent retailers’ chief strengths, says Jennifer Burke, Faire’s Chief Revenue Officer.

“Inventory decisions are independent retailers’ biggest cost, but they’re also the expression of their biggest advantage: taste,” said Burke. “This report shows that even amid economic headwinds, independent retailers are proving remarkably resilient. Instead of retreating into pure cost optimization, these businesses strike a savvy balance and continue to offer their customers the best-of-the-best.”

Here are some other findings from the study:

• Viral trends are reaching the shelves of independent retailers before they hit the mainstream market.
• Tariffs reshaped sourcing but didn’t dampen shoppers’ appetite for differentiated products.
• Independent retail’s growth is concentrated outside major metros, a reflection of relocation patterns by the general population.

Click here for the full report.